Vehicle leasing - can someone explain?

[Andy1976]

Hi,

 

So, I currently have a 5 year old Focus. It's fairly nice, it's top of the range, in good condition etc. (This isn't an ad I promise!)

 

Next year, it'll be paid off. At that point, I'll want a new car, and thought about leasing.

 

Has anyone gone from owning a car to leasing, and can advise on how it works with deposits, part exchange etc?

 

Assuming my car is worth say £4k next year, could I put that down as a deposit, to lower the monthly payments, or would I be better selling it privately, putting a standard 3/6 month deposit down, and keeping the remainder to put to something else?

 

If I did use it as a deposit, when the lease is finished in three years time, do I then need another deposit for the next lease car? Is it worth leasing cars, so I can get a new one?

 

Any ideas greatly appreciated as I'm stumped and can't work it out

[Berberis]

I leased my current car and sold my older car to the same dealer. I sold it for the outstanding finance so I could be shot of it.

 

When you lease you pay a deposit by another name. They call it initial lease. This will be either 3, 6 or 9 months worth of the monthly amount. Depending on which of these you go for, this will reduce your monthly payments. You could sell your old car to the dealer and use all or part of this money as your initial lease, but you will get a better deal if you sell it privately.

 

Use this site to compare : https://www.nationwidevehiclecontracts.co.uk/

 

When negotiating with the dealer, use the above as reference and let them know you have a price from them. I brought my payments down by nearly £50 per month. Dealers know all about that site and how cheap they are.

[Bonjon]

I've switched to leasing and find it a great way to have a brand new motor.

 

I pay £160 for high spec Skoda Yeti (SE L), on a 6+23 agreement (payed 6 *160 upfront), costing me a total of ~£190 a month.

 

For this I never have to worry about tax, insurance was cheaper, and the car will always be under warranty while I have it.

 

I get 15k miles a year, any over that cost me 5p/m iirc.

 

All is good, but......

 

I always have the nagging feeling in my head when I park it anywhere that some oink will prang, dint, scratch it.

 

Any damage over fair wear and tear (which is pretty fair, scratches to 25mm, dents upto 10mm deep, stone chips) I have to pay for at the end of the term, now I did pay for private SMART insurance for the term @ £190 iirc, which covers a fair bit, but that niggle is always there.

 

However, I drive a brand new motor, which would cost a lot more to be buying and at the end of 2 yrs I hand the keys back hassle free.

 

Would I do leasing again? Probably, unless they offer the car to me at a cheap price, or a car I want comes into the price range I want to pay (and i'm willing to then be tied to possible mechanical issues, and selling hassles when I want to get rid).

 

It's a very cheap way to own a brand new car, you just need to be able to look after it well.

 

As for the up front amount, it's not a deposit in the sense you get it back, you don't. And some (mainly dealer arranged) leases may allow you to P/X, but not too sure on this.

 

Any questions feel free to ask

Edited October 10, 2016 by Bonjon