Car Leasing

[rainbowdrop]

Hi Does anyone know anything about car leasing, I have a car allowance with my new job and would like to find out more? An Audi would be first choice...Thanks x

[mccfluff]

how much is the car allowance?
What do you do for you job and how much mileage to you expect to do, leasing is good but the compnaies cap mileage and if you go over it can be a steep charge per mile

[Zacs-Master]

Also, most of the prices quoted are for 10,000 miles a year. If you do more, the price starts to rise quite dramatically.

[rainbowdrop]

It is for £210 a month. A supplier manager and the mileage will vary but on a daily basis it will be just under 50 miles a day, unless I am visiting a supplier which will be on an adhoc basis, will mean additional mileage..

[mccfluff]

you won't get much for £210, are you prepared to put extra in yourself?

[Clanad]

Here in the U.S., we lease a Subaru Legacy for one of the kids. It's a 36 month lease for $234 (US) and allows 12,000 miles per year. We could have gotten it for $214 a month but for 10,000 miles per year, which we didn't feel was sufficient due to the driving distances out here. We could have elceted 15,000 miles per year, but the cost would have been $264 at that time (28 months ago). We've been very satisfied with it and the service form Subaru. We chose this model since we feel the 4 wheel drive is essential for saftey 'cause of our winters.

[rainbowdrop]

Yes will be prepared to put in extra. It seems there is a lot of focus on the mileage which I didnt know so thats really useful, thank you. Need to weigh up what is best for me either leasing or buying...fancy treating myself as never had a car I have actually wanted before!

[Clanad]

Leasing a vehicle, at least from the dealer's point of view, is determining the "residual" value at the end of the lease... that is, how much is the car going to be worth then? One of the primary indicators of that value is the mileage on the car. So... they base the lease payment, in large part, on the expected mileage. You can exceed the agreed to mileage but at a very stiff penalty. In our case, it's 15 to 22 cents a mile (or $150 to $220 per 1,000) for anything over the contract amount.

I would say that, there was a time that owning the car was a better thing since you had something of value at the end of the monthly payments. Problem is, that was when one paid for the car in say, 36 months... now, that same car will probably (at least here) take 60 or 72 months to pay off. By that time the car has depreciated so badly that continuing to own it has lost its value (no pun intended). Whereas, just walking away from the leased car at the end and re-leasing a brand new car makes more and more sense... at least to me.