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Leasing a car

Discussion in 'Personal' started by copycat, Sep 4, 2015.

  1. copycat

    copycat Senior commenter

    Does anyone have any experience of this?

    Daughter's car has just been written off in an accident ( not her fault) and she is considering leasing as a way to replace her car as she will obviously not get a decent settlement for her car.

    She has been looking at Toyota Aygo and Citroen.
     
  2. oldsomeman

    oldsomeman Star commenter

    If you mean PFP plan it works okay as long as you realise you never own the car and at the end of 3 years you need to either buy or exchange. How much you contribute will depend upon the residual money 'in the car'..the value they put it at.

    If your sensible you get all the servicing included but do watch the mileage clause, They assume you do an average of 10,000 miles a year and if you go over the agreed mileage you then have to service it early and if at the end of say 3 years you are over 30,000 they will start to charge you by the mile.So make sure you get this right as we found out to our cost.Obviously the more mileage you want the dearer the repayment costs.

    We have had a Skoda now for 4 years and not had a problem.although its not a flashy car.....but each buys what they like.

    If not buy a reasonable 2nd car and just run it into the ground....you can get older cars with MOT's from about £600.
     
  3. blazer

    blazer Star commenter

    I lease my car and also leased my previous 2.

    I have them on a 3 year lease but you can get shorter and longer periods. If you are not self employed or running a company then you will have to pay VAT so add 20% onto any price you see quoted.

    Also look carefully at the small print. The headline price is often for a very low annual mileage (5K typically). I have mine with 12k pa.

    Leases normally include the road tax (if they qualify). Some leases can also include all the servicing/maintenance but I don't have those.

    Shop around. I had my first car from a leasing company (can't recall name at the moment) and they were OK. My previous and current car I leased direct from the car showroom.

    I reckon that over 36 months I save about £3k compared to buying new and changing every 3 years.

    Look out for offers as sometimes these companies have stock they need to clear and will offer deals to move them. The company I first dealt with were always trying to move Audis for some reason.

    If your daughter intends to keep the car for a long time buying may be a better option.

    Advantages.

    You get a new car at a monthly payment a fraction of what it would be if you bought new.

    You get all the warranty/recovery etc as you would get if you purchased a new car

    You can often get top of the range with the best spec for just a small amount more than the base model.

    They will offer you the chance to buy the car at the end of the contract at a very competitive price.

    Disadvantages.

    At the end of the lease you do not have a car.

    With many deals you have to pay 3 months lease up front so a 36 month contract has 39 payments.

    At the end of the lease there may be extra charges if you have exceeded the agreed mileage and if the car is damaged and not fixed. they do, however accept fair wear and tear so minor paint chips etc will not incur a charge but dents bigger than an inch in diameter, tears in seats, alloys that have been badly kerbed will usually incur a charge.
     
  4. jacob

    jacob Lead commenter

    What he said.
     
  5. copycat

    copycat Senior commenter

    Thank you for your replies. I will be looking into the points you mentioned.

    At the moment it is looking like a sensible option for her.
     
  6. jacob

    jacob Lead commenter

    Just a point. If the write off was not her fault, why should the payout be super low?
     
  7. Duke of York

    Duke of York Star commenter

    Insurance companies will only pay what they consider the value of the car to be as assessed in Glass' Guide. The values given are vastly different from what you'd expect to pay to buy it. The insurance companies then recover all their money and more by selling the car for scrap.
     
  8. blazer

    blazer Star commenter

    This was the company I leased my first car from. http://www.lease-hire.co.uk/ Didn't have any hassle with them. The person I dealt is called Lauren Harold.

    Like I said though most main dealers will do leasing deals on their models. Get a few quotes from leasing companies and then tout them round the dealerships to see if they can beat them. Just know what you want regarding model, spec, term of lease and annual mileage.
     
  9. josienig

    josienig Star commenter

    Regarding insurance companies and what a car is worth..I used to find it very frustrating when I'd be asked 'and what is the value of your car?'. I would point out that I had given them the details..make, model, engine size, year etc so they should be able to look at their list and tell me the cold monetary value..but no, they say I have to give them the figure..sure I wouldn't have a clue and would pluck a number out of the sky. Now I ring the garage before the renewal and find out the price of replacing the car.

    Unfortunately a lot of people are driving older cars, working perfectly, looked after perfectly but if they have an accident the insurance will only pay the value of the car, which will barely cover a down payment on another car.
     
  10. Duke of York

    Duke of York Star commenter

    The honest truth is that the value of a car only exists in the eyes of the owner, a company who financed it and the insurance company that covers it. They all have their own values and none agree. Its a rip off from start to finish.that you can't hope to win.
     
  11. copycat

    copycat Senior commenter

    Well she went to have a look around the dealers today. Looked at the Aygo and a Peugeot then went to Vauxhall and had a test drive in an Adam, a car she has always liked. Ended up ordering the Adam as she loved it and got a really good deal on a 3 year PFP plan, cheaper than the Aygo and better spec.

    Thanks for all the advice; just hope the insurance settlement goes ok now.
     
  12. jacob

    jacob Lead commenter

    And later would you teach me how to remove the contents of a chicken ovulation via the application of differential pressures?
     
  13. Duke of York

    Duke of York Star commenter

    My reply was intended for the wider audience, jacob. It's a topic worth discussion. How many people know that there are different categories of "write offs"? Sometimes the damage is structural and renders the vehicle unsafe to be on the road. Other times, the damage is cosmetic or not impossible for vehicle to be safely repaired. Insurance companies judge such vehicles as being written off because in their eyes they are not economically viable to repair.

    That doesn't mean the owner wouldn't choose to take the insurance money and have the vehicle repaired if it's legal to do so. Unfortunately, people don't ask which category of write off the assessor has given and merely accept the notion that the car shouldn't be on the road and be disposed of, which the insurance companies are happy to take care of, knowing that in many instances, the scrap value will recover what they've paid out.

    If anyone has an accident, remember it was your car and never belonged to the insurance company, so don't get hoodwinked into letting them take it off your hands.
     

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