Personal Leasing - My View

[Doodlepoodle]

Mines a 1.5 tekna also on lease. £326 a month for 36 months, no payment upfront, 13000 miles and full maintained with insurance included. I'm a very happy bunny, just need it to arrive now

[kramrolyat70]

Very good deal. Quick calc makes it about the same as my deal. Just more mileage.

[ippopy]

Just to add my 2 cent
or pence I have decided to go for my first lease too. It was very pleasant transaction
over by emails with reputable company. No hassle or any problems whatsoevera€¦a€¦so
far. Car should be with me 4th of April or earlier. I got 36 months
lease of 1.2 Tekna Silver for 6+ £236
with VAT/month for 8000 miles. Tax and AA included too. Happy chappy .

Now why lease? Simply because
I am getting ready to sell my previous car and it is not great experience.
Personally those cars are not for me but rather my wife since I am away from
home more than half of year (so low mileage lease) but even then "we" got some scratches
and bumps. Now "I" got to repair everything plus fix other electrical issues,
pay for good cleaning service, maybe
tyres, fix the problem with steering
and o the top of that there are some strange noises coming out of gear box. Car
is 8 years old only and honestly is falling apart. Not good feeling to drive it
70 mph with your family on the back etc. Not mention stress associated with selling
later on etc.

I would say that the
best logical thing to do is to buy the car if you intend to keep it long. At
least 7 years. Then it will make sense financially. However you will probably got
to cope with unexpected stressful and perhaps dangerous problems which will
cost you god know what money.

Maybe I am wrong but I
will back in here in 3 years and tell you about it then.

[kramrolyat70]

I think as long as you can say "It works for me" it's all good.

[barneystuta]

Nice write up and always good to hear about positive lease experiences!I used to work for a Leasing Company (business in general, not just cars) and quickly learnt the benefits of leasing. However, I have never leased a car (yet!). I am looking at a QQ and weighed up all the options and i was genuinely surprised at some of the leasing deals I could find. The QQ is going to hold on to that value and over 2-3 years is a great option for me.Leasing is the right option for you if you ask the following questions (and if you say yes)1. Do you want a brand new car, with warranty and no MOT worries?2. Do buy a brand new car every 2-4 years? 3. Do you do a set mileage and is that likely to change in the next few years?Then YES leasing should be an option on the table for you to consider.Your other options are PCP/HP/Finance- If you plan to get a new car every few years, these will generally work out more expensive overall. Even on HP you will shelling out interest and when you come to sell your car after 3 years? Oh, it has lost close to 50% of it's value. So all that interest and depreciation, you have taken the hit for.If you pay cash the same still applies. £21+ on a new car instantly drops to £18k-19k the moment you put your foot on the peddle. Then over the years it will drop in value and you either have the hassle of a private sale or part ex, which means you will generally not get it's true value. Let's say the value of the car has dropped to £12k after 3 years and 30k miles for example. You have effectively paid £9k for a car for 3 yearsSo how much would it be to lease the equivalent car? Let's take the QQ Acenta Premium 1.5 DcI as an example. List price is £22,690. Let's say you get it for £21k to match up with the scenario above (although you can possibly negotiate better)...I've found a lease option for the same car, same spec, for £247 a month on 3+35 profile. This means the total cost is £9,386.So in effect, for an additional £386, you get the following:- You do not have to worry about "selling" your car when you are ready to change in 2-3 years - you pick your next one, and away you go.- You do pay £386 more (and depending on negotiation, you can possibly get the cash price down, meaning a lease would cost more). However, even in today's interest rates, £20k over 3 years would earn ATLEAST that (even in a pretty basic savings account paying 1.5% AER).So back to my point.... The 3 questions are:1. Do you want a brand new car, with warranty and no MOT worries?2. Do buy a brand new car every 2-4 years? 3. Do you do a set mileage and is that likely to change in the next few years?Then YES leasing should be an option on the table for you to consider.If you say no to any of them, that is fine. Leasing likely isn't the best option for you. Some people do prefer to get a used car (say 2-3 years old) and use it for 5-7 years. Naturally this would cost you a lot less (although not always) so leasing probably isn't the best option for you.Also, if you do a very high mileage be wary (although do not rule out) leasing. Remember the payments will increase largely because the value of the car will decrease quicker. So if you pay cash (or finance) you are going to be left with a car which is worth less, meaning your lay out is more. You will likely find that there is very little in the price.So how do the brokers/leasing companies do this? Well, they make their money doing the following:- Fee's - Some brokers charges fee's (usually a documentation fee of say £100-150) on top of that there will be "fee's" for the finance. Some though waive all fee's because they make their money elsewhere....- Money in the finance - Usually the "funders" have a base rate (a bit like the BOE base rate). Let's say 5%. The broker then has the option to increase the rate up to a certain point (say 5%). After that point the rate can still increase further based on a share. So, in some cases, the broker could charge say 12% and the "funder"/broker share this with 6% each.- Cash in the Car - This can be between the broker/finance company or a share. Basically they are buying these cars in bulk orders at huge discounts. A list price of £22k they are going to be paying more like £18k-19k - They can shave off huge sums that 1 person negotiating their own deal will be unable to. However, because the residual value is not based on the price paid (it is based on the relative original list price) this means they have extra money in the car. So when it returns they have the following:- Car worth £22k paid £18.5k- Contract hire paid £9.5k- Car is now worth £12k - Do the sums and you get £18.5k - 9.5k = £9k - sell for £12k and you get £3k back!The leasing company/funder takes all the residual risk you get the benefit of a new car every few years. It really is that simple!I will be making a move on my QQ very soon and will post about my experiences when I do

[MrQQ]

I'm looking for the QQ, I can get F&F discount, and got a quote from a dealer with discount, basically £300 deposit, £332 for a 1.2T/month for 3 years, guaranteed value of around £10600. he (obviously) says good deal as basically no deposit because of your F&F discount. this is a PCP deal so option of handing back or keeping for the £10600 purchase feeHowever after looking on here, and then the web, I can see the same car for a deposit of £790, 3 year deal for £262/month on a private lease.So if I'm going to not hand back after the 3 years, isn't the private lease a better deal? basically (forgetting about the diff in initial deposit), it cheaper? so where's the F&F discount come in.I haven't contacted the dealer, can't see he be happy about me "knowing" this? so what gives here, totally confused now. I need a car in a specific month so need to order a QQ if getting one asap.thanks

[barneystuta]

[quote="MrQQ"]I'm looking for the QQ, I can get F&F discount, and got a quote from a dealer with discount, basically £300 deposit, £332 for a 1.2T/month for 3 years, guaranteed value of around £10600. he (obviously) says good deal as basically no deposit because of your F&F discount. this is a PCP deal so option of handing back or keeping for the £10600 purchase feeHowever after looking on here, and then the web, I can see the same car for a deposit of £790, 3 year deal for £262/month on a private lease.So if I'm going to not hand back after the 3 years, isn't the private lease a better deal? basically (forgetting about the diff in initial deposit), it cheaper? so where's the F&F discount come in.I haven't contacted the dealer, can't see he be happy about me "knowing" this? so what gives here, totally confused now. I need a car in a specific month so need to order a QQ if getting one asap.thanks[/QUOTE]
It really depends. Sometimes the advantage of PCP is that you have cash in the car as well as the GFV. So, let's say you didn't quiet do the mileage projected, you may find your car is actually worth £12k and not the GFV of £10k. Providing you take a new car from the dealer (doesn't have to be the same one), they will put the deposit towards your next car.This is basically why PCP is generally more expensive than PCH (Personal Contract Hire) because the GFV's are set a little bit lower than what it will "really" be worth. Meaning if you do decided to keep it, you can pay less at the end to do so.However, at the end of the agreement (in your PCP example) you would be paying a touch over £2.5k extra. Would you be able to sell get 25% more than the GFV out of the dealer? Unlikely, unless you really have not touched anywhere near the mileage they have quoted.It is a personal choice - leasing does have it's negatives. One thing is you are unable to trade in a car against the lease as you are dealing with a broker. The second is once you start leasing, you do so for the long term. If you lease 3 cars all over 3 years and then decide you want to PCP, then you are starting from zero and have no card to part ex/trade in. This, especially with PCP, is less of an issues as you never really own the car (in full) unless you do pay off the lump at the end of the agreement (or refinance it).In summary:PCP - More expensive, however you have the flexibility of knowing how much you can buy the car for with a guaranteed purchase/refinance price.PCH - Cheaper per month, however you have no guaranteed purchase price at the end of the agreement. Some finance companies will allow you to buy the car - expect a much bigger price to do so though.Good luck with what ever you decide - in my view if your intention is to change after 3 years, go PCH. If your intention is to possibly keep/trade, then see if you can find a cheaper PCP option (maybe try some online Car Brokers).

[ippopy]

For me it is a no-brainer.
Taken from Nissan website for QQ Tekna PCP finance offera€¦

£304 (oppose to £236
of my lease) x 36 months and your £5976 deposit (oppose to £1500 on my lease).
So eventually on PCP after 3 years you
will pay almost £17000 (oppose to £10000 on my lease)a€¦.with optional payment of something like another £11000 if
you want to own it (and loose it your car warranty), which will brings that to
the total of £28K. Laughable really

Similar set up applies to HP
deals.

Not mention about
paying your own road tax..

I might be wrong but thats the way I see it now

[MrQQ]

[quote="ippopy"] <span style="line-height: 1.4;">For me it is a no-brainer.
Taken from Nissan website for QQ Tekna PCP finance offera€¦</span><p ="Msonormal"><o:p></o:p>

<p ="Msonormal">£304 (oppose to £236
of my lease) x 36 months and your £5976 deposit (oppose to £1500 on my lease).
So eventually on PCP A after 3 years you
will pay almost £17000 (oppose to £10000 on my lease)a€¦.with optional payment of something like another £11000 if
you want to own it (and loose it your car warranty), which will brings that to
the total of £28K. Laughable really<o:p></o:p>

<p ="Msonormal">Similar set up applies to HP
deals.<o:p></o:p>

<p ="Msonormal">Not mention about
paying your own road tax..<o:p></o:p>

<p ="Msonormal">I might be wrong but thats the way I see it now<o:p></o:p>[/QUOTE]
Interesting. However with the F&F I only need £299 deposit, then £326 for Tekna 1.2 on 36 months so about 12K , final payment £10600. Opposed to yours it's still 2K more. This is an eye opener for me as supposed to be getting good discounts with F&F but apparently not so where am I personally getting a good deal with regard to F&F?

What lease company please so I can quote to the dealer.
Thanks

[kramrolyat70]

Wow...if that isn't enough information and food for thought for anyone considering their options I don't know what is...