Does anybody know anything about it?
I literally know nothing on the subject and wondering if anybody can shed some light on how it works exactly? Is it dodgy? What are the pros and cons etc
Cheers :)
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Does anybody know anything about it?
I literally know nothing on the subject and wondering if anybody can shed some light on how it works exactly? Is it dodgy? What are the pros and cons etc
Cheers :)
In many ways it's very simple, you lease the car you want for a given term & number of miles. Pay a fixed amount every month for (say) 36 months. Maintenance and tax are often included. At the end of the term you hand back the keys. A guy I know is leading a new 518d for €700 per month for 36 months. The same car would cost €50k to buy.Quote:
Originally Posted by Peter-E36
The pros are you have a new car that you don't need to worry about at a broadly similar total cost of ownership over the lease period . The downside is that you own nothing for all that you spend.
Jesus thats a serious wedge of dough for 3 years in a 518d [emoji15]
25k euro shock!!
I can see plenty do it i just never understood the logic
Why would you want to own a depreciating asset?Quote:
Originally Posted by JohnH
Lets face it, none of us ever hold on to a car for very long.
@Peter
Leasing, HP, PCP are all very different things.
Leasing is basically renting the car and all you have to do is put fuel in it and tax and insure it. Everything maintenance-wise is covered including tyres generally. Its more expensive than other financing options, you never own the car but it is the most hassle free way of motoring.
Some people just like the security of buying and owning.Quote:
Originally Posted by DoktorB
My problem with leasing means your stuck with the same car for 36 months. I've only owned 2 cars for that long.
Why not buy it when its 2 years old for 25k drive for 3 years and sell for 15kQuote:
Originally Posted by DoktorB
Makes more sense then chucking 25k out the window on the motorway
It mainly works for business users who fall into a low BIK band due to the miles they drive, it wouldn't work for me at all sadly (unless I got a crew cab)Quote:
Originally Posted by Gar
There are also hidden fees such as if you go over the average mileage which they dictate then you pay in the region of €100 for every thousand km or part of, that you have exceeded.
Sent from my WT19i using Tapatalk 2
And if there are scrapes on the car or if the tyres are too bald etcQuote:
Originally Posted by Paddy
Hmmm... I love hassle free :D
Would make sense if it's an M4 or something if maintenance, tax and even tyres are included! But if a 518d is that much then I don't want to know how much something interesting would be :p
Good to know though!
Given that an m4a is roughly double the cost of a 518d it'd be at least double, which would actually be quite cheap for the first 3 years on an m4...Quote:
Originally Posted by Peter-E36
Just remember that a lot of these schemes that are on offer require a hefty enough deposit at the start. Take the example of a BMW 318d SE (i.e. Boring spec), from here:
http://www.bmw.ie/ie/en/owners/financial_services/finance/select/financeoffers3series.html
While the deal might say €400 month in the adverts the true monthly cost actually works out a hell of a lot more per month if you divide the deposit cost of €9,521 across the 36 months & add that to your monthly repayment. A quick tot up over the 36 months for the 318d SE is more than €660 per month not the €400 a month quoted. And you own nothing at the end, unless you want to hand over a balloon payment of €20k for the privilege of owning a 3 year old basic enough spec 3 Series, a quick check on Carzone shows that you will pick up a 2011 318d SE (3 year old) for much less than that, so you get ridden a second time.
Personally, I think the PCP schemes are pretty decent value once you go in with you eyes wide open. Sure you might end up with no asset at the end of the fixed term, but if your deposit + repayment amount more or less total the value of depreciation the car incurred plus the servicing required (if included) then its not terrible value. Naturally, BMW or whoever won't structure the payments in such a way that would result in them losing money, so there is a premium to be paid, but it gets you into a brand new car - if thats your thing. Equivalent standard finance would be a lot more expensive considering you're covering payments on the full amount of principal minus the deposit.
That said, if you have any ambitions of mortgaging a house in the next 5 years, I'd ensure you don't engage in any type of financing for a car.
Pardon my ignorance, but am I right in saying this can only be done for a brand new car? Or can it be arranged for a "premium selection" car?
I've yet to see a decent lease deal in ireland - nevermind for a decent car.
Makes more sense in the uk.
There was a deal up north for a golf r, £1.5k down, 200 per month for 2 years
http://www.hotukdeals.com/deals/300bhp-vw-golf-r-5dr-24-month-lease-1555-deposit-inc-document-fee-229-20-per-month-1926066
there's also been a few decent pcp deals on the m cars with bmw doing 0% interest on the m5 last year and i think payments were something like £500 per month.
BMW will offer finance on any car, however the term of the finance will be reduced the older the car is. I'm pretty sure they won't do a lease on a second hand car though.Quote:
Originally Posted by Peter-E36
The last main dealer car I bought was on finance, it was premium selection from BMW. They explained that no finance company will underwrite cars after that car is 8 years old, this means that a 5 year old car can be financed for a terms of 36 months, a 6 year old for 24 months and so on... That said its rare to find a five year old car on dealer forecourts these days unless it something special of has exceptionally low miles.
I don't have any experience with car leasing but with vans it can make a lot of sense. Northgate for example will hand out a new berlingo van for as little as 295 + VAT per month, no deposit and a flexible contract however your miles are fairly limited.
This must apply to Main Dealers and main dealers who give finance such as BMW or VW etc? I have had finance on 5 year old cars over 4 years making the car 9 years old when finance ends, but I didn't buy through a main dealer. Finance was arranged through 'Close' I think.Quote:
Originally Posted by michael320