Personal Leasing - My View

[kramrolyat70]

I've had a few people ask me through different threads about leasing. As with all things how you finance your car is a very personal thing and many things play a factor in that but as so many people seem to be considering it I thought I'd give a break down of my situation and opinion in it's own thread. Below is simply my personal opinion and experience, I am by no means suggesting this will be a good option for all.Model being leased: Qashqai 1.5DCi Tekna (originally in solid paint now Blade Silver)Period of Lease: 36 MonthsContract Mileage: 10,000 per yearPayments: 6 X Monthly payment as initial payment then 35 months at monthly rateMonthly Rate: £250So £1500.00 up front then £250.00 a month.IF the car requires Road Tax, they tax it (obviously in the above case it's exempt).Road side assistance, i.e. AA/RAC cover or manufacturers own usually included in lease costs.You pay for insurance on the car for you and any other drivers.In the above example maintenance is not included so you must replace tyres and service the vehicle yourself at your own cost.You can get options that include maintenance. In my experience this always costs more than the servicing and tyres if you are willing to shop around a bit.When your vehicle is due to go back it is inspected. There are very specific guidelines as to acceptable wear and tear on a vehicle based on it's age. In my experience these are very sensible and not ridiculous in order to get more money from you.If the vehicle is deemed to have been mistreated you do have to pay for alloy wheel refurbishment and any other serious damage. These rules seem to have been relaxed more of late as my latest car with what I would consider a fair amount of wheel damage on the front left did not incur any charges when it went back last Friday.If you go over your contracted mileage you are charged. This charge is laid out at the start of your contract and does not include any delivery mileage which is deducted from the total mileage at the end of your contract. Pence per mile charges can mount up, so if you know you'll do a lot more than the standard 10,000 miles per year ask for a quote based on more mileage.Once you car is returned it is simply that....gone...thank you and goodnight....If you want to lease again you need to make sure you start the process in plenty of time so as not to be vehicle less.The longest I have been without a vehicle between leases is this time, the QQ was delayed so I will have been without a car for 3 days by the time it arrives.This is my 5th personal lease car in a row.For me, working the costs out over a 3 year period meant I was spending less than I would for a PCP agreement; although that can have it's advantages I've always liked the personal lease and change the car every 2 or 3 years in a very simple way. Hope some of you find that useful.

[andrewjoseph]

useful info, thanks

[jonceebee]

Great write up and very useful. I personally always prefer to buy my cars outright as you can trade them in when needed as I have just done with my 13 month old Yeti. The other thing that would worry me over leasing is you never know your financial circumstances in three years, health, job loss can affect this in a serious way. We have just seen a neighbour have his BMW taken away after losing his job, now no transport at all.I would also worry not only of losing the car, but if you have it repossessed your credit rating is obliterated and you can kiss goodbye to ever getting a car on lease or even loan in the future. If I had to buy a car on credit I would take out a bank loan at least you can always negotiate with the bank if you run into financial difficulties. Finally if you cannot afford a new car in three years if it is paid for it's yours to keep as long as it allows, before the scrap yard calls.

[kramrolyat70]

The thing I like is that there are so many options and we can all pick what suits us best.For me I started leasing when I went from having a company car to suddenly having a cash allowance for a car rather than the company providing it.Rules mean you have to drive a vehicle of a certain age and type, therefore changing it frequently. So, I leased..plus it actually costs me less over a 3 year period to lease then get a loan...I'm not fortunate enough to be in a position to buy a car outright.I know that means after 3 years you don't own the car but in my case I wouldn't anyway...and if I needed a balloon payment or something of that ilk I'd have to finance that anyway. So, possibly rather simply, I always look at what affect it has on my back pocket each month and what I can afford....after all financial circumstances and situations can improve over 3 years as well.Repossession wise I think if you secured a loan against a car and then lost your job you'd be in the same situation wouldn't you?I do know that once you pass 50% of the lease period of your vehicle you can arrange for the lease to be canceled and the vehicle returned without penalty; this has a specific name I just can't remember it.But I do agree with Jonceebee...you have to consider all of your circumstances and do what is best for you and what you feel the most comfortable doing.I truly believe there are pros and cons to most options.Hopefully the above helps those who have decided leasing is a possible option for them.

[jonceebee]

Again a well explained post which I am sure will be useful to a lot of potential buyers.Regarding your point of having to replace a company car. I was in the same position having company cars for over 35 years until I retired. What I decided to do around 25 years ago was to pay into an endowment saving plan knowing I would need to buy a car when I retired. I projected I would need £20k and paid monthly into a scheme. When it matured it actually paid out over £30k so it ensured I had enough to buy the car I wanted without having to borrow. Paying cash for the car is a relief as apart from running costs I could easily keep for 12 years if needed and I may well have had enough of driving by then

[kramrolyat70]

ok..now bragging about being retired and having a nice car is just not on I like your planning and style on that one and think that's a cracking idea. I have a good 22+ years to go yet so will be leasing a while.

[jonceebee]

[quote="kramrolyat70"]]ok..now bragging about being retired and having a nice car is just not on I like your planning and style on that one and think that's a cracking idea. I have a good 22+ years to go yet so will be leasing a while. [/QUOTE]]
Swap you the car for free if you let me have your younger age. Retirement is great, but not all the things that go with it.Seriously, having the company car with no real costs allowed me to think like this, I was not spending much if anything on cars, so a small sum each month was never missed by comparison to what it costs to actually run a car... I have now found this out in a big way

[kramrolyat70]

hehehe well I may well follow your example in future....

[SneakyElephant]

not to mention bragging about your 'endowment' and 'relief'...you'll get done for kerb crawling if you don't watch out

[kramrolyat70]

That's probably a whole new thread