Topic: Lease car advice

[Nick110581]

Hi guys,

Does anyone here lease a car?

Getting an allowance through work and wanted to look at this option instead of buying one.

If so, has anyone leased one?

Thanks,

Nick

[dudleyred]

Yep we lease and have done a few years

We use car lease uk based up in northwest

Often have great deals if you’re not too fussed what you have

Would recommend it. Can change car regularly. Less worry about not liking it etc as only have a short time

Happy to answer questions if want to know anything in particular

[[new username under construction]]

One thing that does bug me about it is because the company owns the car, if you get a speeding ticket, it'll go to the company then they'll forward it to you to be paid along with their admin fee :/

[John C]

Is it an allowance to get your own PCP or is it a genuine HMRC approved sub 75g/km CO2 salary sacrifice scheme? If its an employee scheme you'll need to consider P11d and potential pension issues (although I don't think you're close to retirement )

As disused in many other threads, there's no such thing as cheap motoring. You'll need to create a spreadsheet to appraise every option.

If you're looking for leasing sites away from an employee scheme there is Mad Sheep and Drive the deal. Car Wow offers purchases, etc etc etc.

There's loads out there.

[dudleyred]

One thing that does bug me about it is because the company owns the car, if you get a speeding ticket, it'll go to the company then they'll forward it to you to be paid along with their admin fee :/

Ha yes

Only got done for a £15 admin fee last month. Could have been worse!

[pw1008]

Hi guys,

Does anyone here lease a car?

Getting an allowance through work and wanted to look at this option instead of buying one.

If so, has anyone leased one?

Thanks,

Nick

I did it for the first time about 18 months ago, so half way through contract. I went direct with the a main dealer altho in Blackburn not Liverpool as it was about 40% cheaper - probably took about 4 weeks searching for a decent deal.

All quite straight forward and i used my old banger as part exchange for the deposit.

I had a few worries - but suppose they will come to fruition when I hand it back. Best having a look at things like servicing as you have to do them at service intervals or you get penalties some need one every 8000 miles but mine was 19,000. Certain things you have to do like buy the right tyres that match the others so no mixing michelin with continental and no budget options.

Also the mileage get that right  - i can do 30,000 over the 3 years anything over us 7p a mile.  WhatCar have a mailing list with offers on might be worth signing up to that

[L8Craig]

I received my lease car yesterday
Hopefully it'll be a good experience as it's my first.

[Fordy]

Hi guys,

Does anyone here lease a car?

Getting an allowance through work and wanted to look at this option instead of buying one.

If so, has anyone leased one?

Thanks,

Nick

Why not just buy on finance with your car allowance(if you can't afford one outright).

Loads of people do lease but they don't own the car at the end of it.

[Nick110581]

Why not just buy on finance with your car allowance(if you can't afford one outright).

Loads of people do lease but they don't own the car at the end of it.

That’s an option too.

Just prefer a newer one but good deals out for used cars but involves loans, etc.

[QR350]

I've currently got one on finance, 0% interest so it's a three year deal then the car is mine. Much better option than leasing imo.

[Nick110581]

I've currently got one on finance, 0% interest so it's a three year deal then the car is mine. Much better option than leasing imo.

What car?

[Fordy]

I've currently got one on finance, 0% interest so it's a three year deal then the car is mine. Much better option than leasing imo.

This.

I'm looking at a new BMW 4 or a Merc CLA on the same deal.

Miles better than leading.

Might cash buy fully but getting will more than likely just finance.

Problem with leasing is any damage, mark's etc on the car you've to pay for on return etc plus extra mileage costs then you still don't own the car.

[Nick110581]

This.

I'm looking at a new BMW 4 or a Merc CLA on the same deal.

Miles better than leading.

Might cash buy fully but getting will more than likely just finance.

Problem with leasing is any damage, mark's etc on the car you've to pay for on return etc plus extra mileage costs then you still don't own the car.

I want a A Class but can’t find 0% Finance deals

[thejbs]

One thing that does bug me about it is because the company owns the car, if you get a speeding ticket, it'll go to the company then they'll forward it to you to be paid along with their admin fee :/

Don't speed.  Problem solved. 

[adruk87]

I want a A Class but can’t find 0% Finance deals

Usually need quite a sizable deposit, around 50%

[Eeyore]

I've currently got one on finance, 0% interest so it's a three year deal then the car is mine. Much better option than leasing imo.

It depends on how much depreciation you are going to suffer. It is very easy for the depreciation to be more than the amount you would of spent on a PCP or a PCH. As for 0% interest the finance cost will of been built into the price of the car.

As the saying goes buy an appreciating asset and lease a depreciating asset. A perfect example is the effect the demonisation of diesel has had on the residual values of diesel cars. A personal contract purchase gives you a GFV a guaranteed future value of the car. At the end of the contract you are pretty much in a no lose situation. If the car is worth more than it's GFV at the end of the term then you have some equity in the car which can be used against your next car or you can buy the car. If the GFV is lower you just hand the car back and whoever financed the car takes the hit.

Someone who chose a PCP over a normal purchase on a diesel car will be in a much better position now.

[QR350]

What car?

Ford Focus 63 Plate. There's a place near where I live and 0% deals is what they do best, all top spec cars aswell and no deposit needed.

[Eeyore]

Ford Focus 63 Plate. There's a place near where I live and 0% deals is what they do best, all top spec cars aswell and no deposit needed.

Lending money has an associated cost, you aren't really borrowing the money for free it is just added onto the screen price of the car. If you can get 0% finance with no deposit then you need to have a very good credit score. If you have a very good credit score then you can borrow at less than 3%.

So you have to look at how much you could save as a cash buyer compared to what you will pay if you take up the 0% offer.

[Fordy]

It depends on how much depreciation you are going to suffer. It is very easy for the depreciation to be more than the amount you would of spent on a PCP or a PCH. As for 0% interest the finance cost will of been built into the price of the car.

As the saying goes buy an appreciating asset and lease a depreciating asset. A perfect example is the effect the demonisation of diesel has had on the residual values of diesel cars. A personal contract purchase gives you a GFV a guaranteed future value of the car. At the end of the contract you are pretty much in a no lose situation. If the car is worth more than it's GFV at the end of the term then you have some equity in the car which can be used against your next car or you can buy the car. If the GFV is lower you just hand the car back and whoever financed the car takes the hit.

Someone who chose a PCP over a normal purchase on a diesel car will be in a much better position now.

Witn PCP they tends to be a massive ballon payment at the end of the loan if you want to keep the car.

Problem with PCP is that you pay at least 10% deposit at the start then paying all the interest, have to pay for extra for mileage, servicing,  mark's etc then at the end if you want keep it pay a massive ballon payment.

Might as well just get a finance deal and buy the car. Then the car is yours and if you don't want it then part ex it.

Even those that lease are now trying to get it down to 2 year leases because your're entering a contract that depends on finances and youdont own the asset, so if something does happen at your work you're paying for something you don't own. Least with a finance deal if something did happen you're paying for something that will belong to you and you would have a car.

[[new username under construction]]

Don't speed.  Problem solved. 

Well yes true and not been done yet, but the idea is bad

[Fordy]

I want a A Class but can’t find 0% Finance deals

A new A class is coming out soon mate.

Has voice control- looks mint.

[Wigwamdelbert]

A new A class is coming out soon mate.

Has voice control- looks mint.

Not  a fan of the A Class personally, but then maybe I'm biased as one recently rear-ended me. My car is still in the shop getting repaired, his was fine though, as he hit me with the part of the car that other manufacturers use to place indicators.

[Eeyore]

Witn PCP they tends to be a massive ballon payment at the end of the loan if you want to keep the car.

Problem with PCP is that you pay at least 10% deposit at the start then paying all the interest, have to pay for extra for mileage, servicing,  mark's etc then at the end if you want keep it pay a massive ballon payment.

Firstly you don't have to pay a 10% deposit up front. There are plenty of deals that are 1+23 or 1+35 which means you just pay your first payment usually plus a processing fee. As for paying all the interest that really isn't true you can get plenty of PCP's that have very competitive interest rates.

As for servicing and mileage I don't see the problem. If you buy the car on finance then you are still going to have to service it and whatever mileage you do will have an effect on the mileage. As for marks make sure you lease the car from a company that adheres to the http://www.bvrla.co.uk/service/fair-wear-and-tear-guides and you will be fine. Normal wear and tear is fine such as small dents, scratches on alloys and even small bumper scuffs. Anything more serious than that and yes you will have to pay for the repairs or claim of your insurance. The thing is though if you buy then you either have to get the repairs done or except a lower valuation.

Might as well just get a finance deal and buy the car. Then the car is yours and if you don't want it then part ex it.

Even those that lease are now trying to get it down to 2 year leases because your're entering a contract that depends on finances and youdont own the asset, so if something does happen at your work you're paying for something you don't own. Least with a finance deal if something did happen you're paying for something that will belong to you and you would have a car.

You are ignoring depreciation though. It is not uncommon if you pay the list price for a car to lose over half it's value in the first two years. As for finance you don't own the asset until it is paid off. When it is paid off it will only be worth a fraction of what you have paid for it.

If you shop around you can get easily get a £20,000 car for £4-5000 of payments on a PCP over two years. Buy that same car even on 0% finance and it will cost you far more in depreciation. It is very easy for a £20k car to lose 10k over the first two years.

There are very few bargains in the world of motoring but pick the right PCP or PCH and you can enjoy hassle free motoring at a very reasonable cost without the worry about the possibility of huge bills down the line.

[rob1966]

snip

Personally I'd buy a car that is about 10-12 months old, let the first owner take a kicking and buy it with bank loan. I just rejigged my credit cards and loan, borrowed 8.5k at 3.1% (They were offering up to I think 15k at that rate, might have been more - my last loan was £11k at 4.2%), £188 pm over 4 years, £600 interest.

[Eeyore]

Personally I'd buy a car that is about 10-12 months old, let the first owner take a kicking and buy it with bank loan. I just rejigged my credit cards and loan, borrowed 8.5k at 3.1% (They were offering up to I think 15k at that rate, might have been more - my last loan was £11k at 4.2%), £188 pm over 4 years, £600 interest.

Yeh I think that is a far better buying strategy. The car will have lost it's initial depreciation, it will be old enough to show if that particular models weaknesses have began to manifest themselves and above all borrowing the money yourself allows you to haggle really hard.

It is the overall cost of ownership that matters not the APR.

The only cautionary thing I would say is that buying at the moment is taking a pretty big gamble on how things will pan out. Diesel's are wrongly being demonised at the moment and sales have slumped but the alternatives PHEV's and BEV's simply aren't ready yet whilst Petrol's are expensive to run unless you go for a small economically city car.

Get the gamble wrong and the residual value of your car could take a huge hit or if you go down the diesel route then you could end up being banned from City centres. I currently have an old banger I use to get to work and an Astra on a 2 year PCH that is up in November. for the other half. I think the best option at the moment is another PCH for a couple of years to let the market settle down. At the moment I would much rather let whoever finances the PCH or PCP take the gamble on future residual values and the potential hit than myself.

[Buck Pete]

Does anyone lease a car on here and which company do you use?

No really looking for advice on the pro's and con's of Leasing v Buying outright.  Just need the names of a few reputable leasing companies who are reasonably priced.

cheers.

[Nobby Reserve]

Does anyone lease a car on here and which company do you use?

No really looking for advice on the pro's and con's of Leasing v Buying outright.  Just need the names of a few reputable leasing companies who are reasonably priced.

cheers.

There's two main aggregator sites:

leasing.com
leaseloco.com

You can basically put in the car that you want and it shows comparisons form a wide range of leasing companies. Can filter to the details you want in the lease (ie, how long over, deposit to put down, etc)

There's some that won't appear, but I don't know specific names. Just a case of googling.

I've found a lot of lease companies are effectively brokers, with a finance company (like Lex) being the ones sat behind providing the funding.

The problem these days is that there's no great deals to be had. Pre-Covid, there would, at varying times, be manufacturers with over-stocking of a particular model, who would offer incentives (mainly price cuts on the RRP), or you could have a dealership that buys-up a block of a particular car so that they hit their over-rider targets, but need to get them registered and sold quickly.

During Covid, manufacturers ran their stock down quickly after their factories had shut-downs and, more importantly, manufacturers of components (principally semi-conductors) had shut-downs and there's still restricted supply even now with demand still outstripping supply in some cases.

Post-Covid, the upshot is that no manufacturer has stockpiles they need to sell quickly (instead, most have waiting times from 3-12 months) and dealerships are, as a result, well off targets.


Put simply, leasing works by the finance company calculating the difference between the selling price of a car and the expected residual value at the end of the lease period, then charging this to the customer - plus interest and some fees.

If the RRP of a car is £40k and the residual after 4 years £20k, the lease company will demand £20k plus interest plus fees from the customer, and this is spread over 48 payments.

If some relatively small quantities of that same car are discounted to £35k, the residual after 4 years is still £20k. But the finance company will only want £15k (plus interest/fees) from the customer.

So the lease deal seems particularly good. 

[Buck Pete]

Thanks for this Nobby. Appreciated

[macca007]

So I have recently returned a lease car that I had through work. They have done a full inspection (car was immaculate after 3 years) and they are trying to get me to pay 1232 quid for damages. The main bulk of which is for a scratch on the headlight that they are on about replacing the full headlight. Told them I'm not paying it and contested it back in march and they knocked 60 quid off and are now trying to charge the £1232. Any advice on the best course of action? Hopefully I've attached the image of the headlight showing the apparent damage.

[WhereAngelsPlay]

Insurance should surely cover headlight damage, no ?  It'll be off road debris and you're not to blame for that & should be classed the same as your windscreen.

[macca007]

To be honest it's allowed wear and tear through the lease anyway and theres fuck all wrong with that. They are taking the piss wanting to replace it for 1200 quid. Got another lease through work again since so wouldnt know where insurance stands on previous vehicles.

[WhereAngelsPlay]

To be honest it's allowed wear and tear through the lease anyway and theres fuck all wrong with that. They are taking the piss wanting to replace it for 1200 quid. Got another lease through work again since so wouldnt know where insurance stands on previous vehicles.

If it's through work can't you get them on the case ?


There's bound to be somebody on here who has gone through the process.

[macca007]

If it's through work can't you get them on the case ?


There's bound to be somebody on here who has gone through the process.

It's the nhs lease scheme and not quite through my direct hospital. Told them I'm contesting it cos I honestly think they are trying to take the piss. There was 1 small scratch near the boot that you can only see when you lifted it up that I'd have actually took responsibility for. Think they wanted 30 odd quid for it. But not paying out on that headlight

[John C]

It's the nhs lease scheme and not quite through my direct hospital. Told them I'm contesting it cos I honestly think they are trying to take the piss. There was 1 small scratch near the boot that you can only see when you lifted it up that I'd have actually took responsibility for. Think they wanted 30 odd quid for it. But not paying out on that headlight

I'm sure the NHS scheme morphed in to the Crown Commercial Services (CCS) car lease scheme?
Is the provider charging your company and are they passing it on to you?
If It's CCS there's a waiver for certain amounts of small damage.
Have you checked the BVLRA guide about damage, what's acceptable in the lease industry as chargeable.
Has your company challenged the charge - there's about 9 companies, some are sound with minor damage some are harsh - they shouldn't just accept a charge.

[rob1966]

To be honest it's allowed wear and tear through the lease anyway and theres fuck all wrong with that. They are taking the piss wanting to replace it for 1200 quid. Got another lease through work again since so wouldnt know where insurance stands on previous vehicles.

If it allowed wear and tear as written in the contract, tell them to fuck off.

https://www.nationwidevehiclecontracts.co.uk/car-leasing/guides/leasing-wear-and-tear-guide

What kind of damage is acceptable on a leased vehicle?
Damage to leased vehicles is typically classified as either acceptable or unacceptable. Acceptable damage includes normal wear and tear that comes with driving, whereas unacceptable damage includes more severe damage. 

Typical acceptable damage includes:

Small light scratches of up to 25mm (except where primer or bare metal is showing)
Damage to the light lens, but not if the glass has been cracked and there is water ingress

[macca007]

I'm sure the NHS scheme morphed in to the Crown Commercial Services (CCS) car lease scheme?
Is the provider charging your company and are they passing it on to you?
If It's CCS there's a waiver for certain amounts of small damage.
Have you checked the BVLRA guide about damage, what's acceptable in the lease industry as chargeable.
Has your company challenged the charge - there's about 9 companies, some are sound with minor damage some are harsh - they shouldn't just accept a charge.

I just know it as nhsfleetsolutions. Yes it's the provider and I have challenged it when I 1st got the report. That was in march and only now are they saying I need to pay after they have knocked 60 quid off.
And I've not checked that guide as not known where to look. Looking for ways to basically tell them they are taking the piss with what they've suggested.
Got back on to fleet solutions and they have said they will challenge it again. Need to send an email in the best way possible. I still think they are taking the piss with the headlight hoping I will challenge that alone and pay for the rest which they are saying are scuff on the rims. Again that car was immaculate for 3 years old.

[macca007]

I wish to contest all the damage as any marks ok that car definitely fall within wear and tear.

I cannot make out any scratches on the photo provided for the light, I can only see reflective marks and there is no way there is any damage there especially not for a whole new light to the tune of £1200 plus. Whoever thinks that is acceptable from that photo needs to see an optician.

The 'scuff' marks on the wheels do not look like scuff marks to me but small amounts of dirt.

I told the lad who picked up the car that I did not agree with his assessment at the time and the only thing I signed on his phone was for him to say I'm handing the car over to his care which he made me sign twice as he said it didn't work.

The car even had 15000 miles less than the agreed amount.

There is no way anything in the supplied pictures comes close to the amount requested and it is not a case of knocking 60 quid off. That bill is a joke and that car was returned in immaculate condition.

Think this is getting sent, if anyone has any further advice before I send it?

[rob1966]

How big is the scratch? This is the BVRLA guide I found on the nhsfleetsolutions website, the terms allow up to 25mm of scratching.

https://issuu.com/bfwsn67/docs/nhs_fleet_solutions_car?fr=sNGE1NzI4NTE1

[rob1966]

I wish to contest all the damage as any marks ok that car definitely fall within wear and tear.

I cannot make out any scratches on the photo provided for the light, I can only see reflective marks and there is no way there is any damage there especially not for a whole new light to the tune of £1200 plus. Whoever thinks that is acceptable from that photo needs to see an optician.

The 'scuff' marks on the wheels do not look like scuff marks to me but small amounts of dirt.

I told the lad who picked up the car that I did not agree with his assessment at the time and the only thing I signed on his phone was for him to say I'm handing the car over to his care which he made me sign twice as he said it didn't work.

The car even had 15000 miles less than the agreed amount.

There is no way anything in the supplied pictures comes close to the amount requested and it is not a case of knocking 60 quid off. That bill is a joke and that car was returned in immaculate condition.

Think this is getting sent, if anyone has any further advice before I send it?

I'd remove the bit about seeing an optician, find a nicer way of saying it

[macca007]

How big is the scratch? This is the BVRLA guide I found on the nhsfleetsolutions website, the terms allow up to 25mm of scratching.

https://issuu.com/bfwsn67/docs/nhs_fleet_solutions_car?fr=sNGE1NzI4NTE1

It's meant to be on that picture above. Which I cant see