Leasing A Car...pro’S And Con’S

[Smowball]

We’re considering leasing a car rather than buying a new one, but have never done it before. Does anyone have any experience of this? What are the main advantages and disadvantages? Any advice much appreciated !

[bednobs]

i use to do the 3 year deals
the main advantages for me were that i could afford a better car than if i was buying oe. I also got a new car every 3 years.
Downsides were there was a limited mileage (although i didnt do that much i was constantly aware of it) and i was tied in to servicing - i had to have it done at exactly the right time. Im not sure if this is leasing as you are talking about it though - its the one where at the end you either pay the balloon payment or give it back

[tonyav]

And for gawds sake don't get any scratches on it because they'll charge you for them at the end of the lease.

[ToraToraTora]

do not touch with a bargepole.

[Smowball]

Yes I mean give the car back at the end.
And why TTT?

[Zacs-Master]

In theory you’re throwing your collateral in your existing car (assuming you’re part ending your old car?) away because you’ll have virtually no deposit when you come to swap. You can usually, as you say though, drive a significantly better car. I’ve just done a lease deal and I won’t really know whether it was the right thing until the three years is up. I only do around 7000 Miles a year and the penalty for going over the mileage is only 6p a mile. In the mean time I’m driving round in a very nice car.

[Smowball]

Hmmmm, lots to consider.....

[FrillyPancake]

I'm on my second lease deal through freedom contracts, and it's the best thing I ever did.
All you're paying back is the depreciation on the mileage that you agree on, so when you hand back the car they know exactly what they are getting. As for scratches and dings etc my husband fixes them for a living, so the car will be like brand new when I give it back if it were to encounter some scratches when I have it for the 3 year period.
I just handed back my last one and got another one in February and there's no balloon payment at the end of the term either, just hand it back! The only thing you need is the down-payment. I find it extremely easy!

[Flonska]

When you say "lease" a car, there are two principal methods:- PCH personal contract hire and PCP personal contract purchase. There are differences. This link explains them:

https://www.moneyadviceservice.org.uk/en/articles/leasing-a-car

As well as buying your car (usually a new one) on a contract via a dealer there are independent companies who offer PCH and PCP so you widen your choice.

If you know what type of car you would like, go and chat to the dealer to find out more precise details. One thing to look out for is GAP insurance:-

https://www.moneysavingexpert.com/car-insurance/gap-insurance

The dealer will usually try to sell you this within the package and the charge may be quite a bit higher than arranging it for yourself. You should also check with your insurers if they offer full replacement value for the first 12 months - some do - in which case you need only take the GAP insurance out to cover from year 2 onward (saves money!). As we use the same GAP company each time, we get premium refunds/loyalty discounts on the policy each time we trade in the cars.

We currently have two cars each one on a PCP contract (both new ones bought from a dealer). We change our cars every 2 - 3 years. We have done this with no problems at all over the last 15 years.

[ummmm]

We used to rent them (as a business though) and they changed them every three months. Brilliant. They covered tax and insurance (it might have changed now) as long as you had no points on your license.