Personal Car Lease

[Artoir]

Lease is a terrible option, but you'll probably not change your mind once you're set on getting one that way.

Cars are simple, they go down in value, regardless. But who ends up paying for the depreciation? The dealership out of the kindness of their hearts? They throw that into your contract so you're going to be paying for it either way.
You are paying the total cost of capital (which includes the interest on the car too) otherwise the dealership would lose money. And I'm sure you know, they make a killing on leases which is why they would rather sell you lease over even financing a new car for you.

That's certainly not the case for many new cars @stevyg. With some of the lease deals at the minute, the man that buys new with cash loses more money over two years than the man leasing for the same period...

 

[pinto200]

Lease is a terrible option, but you'll probably not change your mind once you're set on getting one that way.

Cars are simple, they go down in value, regardless. But who ends up paying for the depreciation? The dealership out of the kindness of their hearts? They throw that into your contract so you're going to be paying for it either way.
You are paying the total cost of capital (which includes the interest on the car too) otherwise the dealership would lose money. And I'm sure you know, they make a killing on leases which is why they would rather sell you lease over even financing a new car for you.

I disagree. Leasing companies can order 1000's of cars at huge discounts direct from the manufacturer. They are then able to finance these very competitively to the private individual.

 

[stevyg]

Artoir You can't be comparing numbers over 2 years surely? Of course if you buy something upfront you are going to 'lose' more money than if you put a small deposit up front. Thats like saying people who buy houses lose more money over 2 years, than people who rent.

pinto200 I don't believe a word of it so I'd love to see the numbers on this if you can get them?

 

[Artoir]

Artoir You can't be comparing numbers over 2 years surely? Of course if you buy something upfront you are going to 'lose' more money than if you put a small deposit up front. Thats like saying people who buy houses lose more money over 2 years, than people who rent.

pinto200 I don't believe a word of it so I'd love to see the numbers on this if you can get them?

No, you misunderstand.

The man who buys new for £40k and get gets £28k 2nd hand 2 years later has lost £12k.
The man who leases spends £10k over the two years has only lost £10k.

 

[Paul RS]

is there no by ball on minor marks then? would likely need a respray ffs!

I know quite a few of our company lease cars have been painted right before they are handed back. That may be down to our particular lease company though.

 

[stevyg]

No, you misunderstand.

The man who buys new for £40k and get gets £28k 2nd hand 2 years later has lost £12k.
The man who leases spends £10k over the two years has only lost £10k.

Well help me understand. Genuinely.....

How does a lease company make a margin to stay in business?
If those numbers are true, what you are telling me is that at that price, every single car that is leased, loses the lease company £18,000 over 2 years.

Is every customer getting one over on the lease company? Someones numbers don't add up here.

 

[pinto200]

pinto200 I don't believe a word of it so I'd love to see the numbers on this if you can get them?

M135i, 6 plus 23 months at £252/month for 2 years is £7400. Try buying one and getting back out of it for that. Plus road tax paid.

 

[Artoir]

Well help me understand. Genuinely.....

How does a lease company make a margin to stay in business?
If those numbers are true, what you are telling me is that at that price, every single car that is leased, loses the lease company £18,000 over 2 years.

Is every customer getting one over on the lease company? Someones numbers don't add up here.

I genuinely don't know, the only answer I can fathom is that they're getting incredible deals from manufacturers.

But the deals do exist, particularly on the Mercedes other German stuff.

 

[pablo]

In my case:

16k car. leasing for 3 years will cost me 7k @ 180pm. I dont have 16k to put in and a loan for 16k would be about 500pm?

so in 3 years time I can either:

have a 16k car paid off and owned by me, that is worth about 8-9 grand. total cost to me 8k say.
or
have no car, and have paid 7k.

its (on the face of it) a bit of a no brainer. Im not saddled with a 16k loan and Ill probably renew for a new car after the 3 years anyway so I dont have the hassle of selling the car I have. Just hand it back and pick up a new one.

 

[gcon45]

It's the only way to own a brand new car IMO (unless you plan to keep it and drive it into the ground).

 

[Artoir]

In my case:

16k car. leasing for 3 years will cost me 7k @ 180pm. I dont have 16k to put in and a loan for 16k would be about 500pm?

so in 3 years time I can either:

have a 16k car paid off and owned by me, that is worth about 8-9 grand. total cost to me 8k say.
or
have no car, and have paid 7k.

its (on the face of it) a bit of a no brainer. Im not saddled with a 16k loan and Ill probably renew for a new car after the 3 years anyway so I dont have the hassle of selling the car I have. Just hand it back and pick up a new one.

Yep perfect example of where it works for some people.

 

[pinto200]

There's a vat saving too for the leasing company iirc.

 

[BarryPort]

Everybody's different & I know a lot of people like a fresh car.
I believe you can offset these payments against your tax so it's favoured by companions owning a fleet of cars that will obviously need serviced & sold at some stage.

As for private leasing for personal use, I wouldn't like to get into bed with these boys.

 

[pablo]

lol its not harry the bas*tard youre leasing off!

 

[Ceebl]

We have neighbours who lease a 6.3 litre AMG Merc and a BMW 335i cabriolet. Looking at their driveway you'd think they were loaded. I think that's the main benefit for them. Though in fairness, you'd need a few quid to keep up the payments on either of them.

How much does it cost to lease a 63 lmao?

 

[Woodcutter]

How much does it cost to lease a 63 lmao?

There was a deal recently on these for about £600 per month.

Heavily subsidised by Mercedes Benz UK.

 

[stevyg]

In my case:

16k car. leasing for 3 years will cost me 7k @ 180pm. I dont have 16k to put in and a loan for 16k would be about 500pm?

so in 3 years time I can either:

have a 16k car paid off and owned by me, that is worth about 8-9 grand. total cost to me 8k say.
or
have no car, and have paid 7k.

its (on the face of it) a bit of a no brainer. Im not saddled with a 16k loan and Ill probably renew for a new car after the 3 years anyway so I dont have the hassle of selling the car I have. Just hand it back and pick up a new one.

To me thats still a terrible financial decision especially when you consider that you can now buy the 3 year old car you mentioned for £8-9k. So you could buy the car outright with pretty much 1 lease term. What you've done is pay the depreciation on a brand new car for 3 years and at the end you hand it back.
Do what you please with your money but even with man-maths my minds still blown as to why and how someone can calculate that as their best financial option vehicle-wise.

 

[chris_b]

Thats Merc's current offer pulled direct from their site. There are much better one available for business users etc available if you know were to look

 

[Artoir]

Thats Merc's current offer pulled direct from their site. There are much better one available for business users etc available if you know were to look


View attachment 59491

That's a normal finance deal though

 

[pablo]

To me thats still a terrible financial decision especially when you consider that you can now buy the 3 year old car you mentioned for £8-9k. So you could buy the car outright with pretty much 1 lease term. What you've done is pay the depreciation on a brand new car for 3 years and at the end you hand it back.
Do what you please with your money but even with man-maths my minds still blown as to why and how someone can calculate that as their best financial option vehicle-wise.

not really. its around 10k to buy a 2011 car. say you pay it over 3 years. In 3 years what will it be worth? 3-4k? so straight away youve lost 6-7k. Plus factor in maintainence, mots, tax etc and the hassle of selling at the end.

Im struggling to see where the money is lost. If you drive it into the ground then it maybe makes more sense but you could lease for 3 years, and buy a car for 3k if you wanted and be in exactly the same boat. difference is youve had a 3 year old at the start and the headaches involved.

 

[Artoir]

To me thats still a terrible financial decision especially when you consider that you can now buy the 3 year old car you mentioned for £8-9k. So you could buy the car outright with pretty much 1 lease term. What you've done is pay the depreciation on a brand new car for 3 years and at the end you hand it back.
Do what you please with your money but even with man-maths my minds still blown as to why and how someone can calculate that as their best financial option vehicle-wise.

I'd agree with that, but if you want a new car with warranty, then a lease can make sense.

 

[chris_b]

That's a normal finance deal though

Yes but the finance deal on an AMG for example is the best option. It is very important to weigh up the best option to suit your needs.

 

[56oval]

Lease is a terrible option

Depending on your viewpoint.

personally i'd rather have a new car on the drive and less money for the tax man to take at the end of each year.

There is another thread on here regarding leasing vehicles, and ill say it again, what will be financially attractive to some, will be financial suicide to others.

 

[Artoir]

Try this http://www.freedomcontracts.com/Mercedes-C63-4Dr-C63-AMG-4Dr-Auto-Personal-Lease/888

Second deal, £14k for a new C63 for 2 years and 20k miles. I would guess depreciation alone is probably what, £20-25k before you look at interest on your loan?

 

[56oval]

There you go, quoting myself here, you will struggle to get anything in the family hatch size sub £250 by the time your finished unless you do minimal mileage, and dont forget, the deals from the uk will include a delivery charge or a scenario where you collect the car and put it on the boat yourself, another big expense. My mrs wont go past volkswagen, personally i'd be happy with a focus for a lot less money, but its her car, her money, we shopped around and fleet financial couldnt match the deals we were getting with agnew corporate at the time, its not cheap by any means, but we run our own businesses and financially it works 110% for us.

As a comparison weve just ordered 2 GT's from Agnews, 3 + 36 plus 2 months free lease at the end of the term, lease only mats n flaps and a full tank obviously road tax included for the 3 years and 6p per mile overcharge. ( 20k miles per annum)
£324 + vat per month. (£389) White (extra over std colours)

So thats £1166.40 deposit.
3 years lease @ £14k
plus service costs. tyres etc.
Plus you need to remember if its a company car how much will you personally be paying in tax on this each year.
It isnt as cheap as you would think, when you get into the nitty gritty.