Jump to content

Leasing Car


Halohodge
 Share

Recommended Posts

I am thinking of when I replace my car later in the year I am considering leasing the vehicle, do you consider it a good or bad idea.

First question, would you be allowed to fit a towbar, any info on this would be useful.

Second, is there an age limit on leasing, I am 75 years old, would medical history be taken into consideration .

Thirdly, anything you consider I should take into account.

Like I said, I am thinking about it, so suggestion against the idea I want to hear, particularly people of ''three score years and ten' .

Swift Fairway pulled by a Ford Mondeo 2. 0 Business Edition 5 door hatchback

Adventure before Dementia

Link to comment
Share on other sites

You'd need the leasing compaiy's approval to fit a towbar - best requested when you're getting quotes

 

I don't see why they'd be bothered by age/health as it would be a requirement to be insured fully comprehensive, but again ask when getting quotes.

2015 VW Touareg 3. 0 V6 TDI + 2013 Lunar Clubman ES

Link to comment
Share on other sites

My Dad leased a car in his late 70's.

 

A normal credit check was all that was needed.

 

My Dad sadly passed away during the lease. VW were the lease company and they were happy for the lease to be cancelled or taken on by a family member with any transfer costs paid by the estate.

My mum continued leasing the car until end of term. VW Finance had a specialist department to deal with that situation.

 

On a lighter note some leasing companies only allow factory towbars, some allow aftermarket towbars and some do not allow towbars at all. You have to check before you lease.

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

The main thing to watch is the mileage allowance. Some providers only allow as little as 6000 miles per year and many more only 8000 - that's 160 miles per week. After that you pay a charge per mile on top of your other charges, and it might also affect the final payment figure for a 'higher' mileage.

Personally, if I can afford to buy the car then I would. Leasing might suit someone who travels to work by train and only uses the car at weekends but for practical purposes and especially if you intend to tour with the caravan the mileage allowance alone is nowhere near enough.

2018 Passat B8 Estate 150GT TDi150 towing a 2018 Bailey Unicorn S4 Seville

Link to comment
Share on other sites

The best way is to ask the leasing company. They may allow you to do It. Or how about getting a car on PCP. They are usually more relaxed with things like that.

Link to comment
Share on other sites

I think if you know your annual mileage with some degree of accuracy and want to swap for a newer car at the end of the lease period (3 years maybe???) It probably makes financial sense.

 

Outside of those kind of parameters, if you have the cash, it's usually better to buy.

:excl::excl::excl:    Spanish Trip 2020 - :excl::excl::excl: - Time to bailout...

Subscribe to our Blog at the website below and read the diaries of many of our expeditions.

Caravan Ramblings blog

Link to comment
Share on other sites

If you take out a 3 year lease and something goes wrong health wise after 6 months and you can no longer drive, you can find yourself paying a huge fee to end the deal early, or have to pay the contract to the end for a car you can no longer use. 

 

Happened to to my neighbour who was in his late seventies. with a Jag XF, 

Link to comment
Share on other sites

Having gone in to it, and doing circa 15000 miles a year , I prefer to pay cash for my new, to me,  sixth month old Land Rovers. Keep them for three years, and then repeat!

2019 Bailey Platinum (640) Phoenix from Chipping Sodbury caravans, towed by our  2017 my Discovery Sport!

 

Link to comment
Share on other sites

Leasing can be far the cheapest option, you have to be lucky to drop on the deals.

 

The Yeti's we had were £1200 down and £99 a month for two years at 10k miles a year.

 

That's £3500 for two years trouble trouble free motoring. 

 

We would have lost more in depreciation alone buying used never mind new.

 

Then we dropped on a PCP deal from BMW with a massive dealer contribution, 0% finance and free service pack. Buying a one year old model on the forecourt worked out more expensive.

 

And I've bought new cars cash, nearly new cars cash and used cars cash.

 

There's never one way of buying is always best.  There will be good deals out there that may mean one way is cheaper than the other. Investigate them all and go for the cheapest for you.

Cars that we buy are never an investment so buy in whichever way suits you best.

 

 

Edited by logiclee

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

21 minutes ago, Fireman Iain said:

If you take out a 3 year lease and something goes wrong health wise after 6 months and you can no longer drive, you can find yourself paying a huge fee to end the deal early, or have to pay the contract to the end for a car you can no longer use. 

 

Happened to to my neighbour who was in his late seventies. with a Jag XF, 

Wouldn't the lease be the least of your worries!!??

:excl::excl::excl:    Spanish Trip 2020 - :excl::excl::excl: - Time to bailout...

Subscribe to our Blog at the website below and read the diaries of many of our expeditions.

Caravan Ramblings blog

Link to comment
Share on other sites

2 hours ago, Halohodge said:

I am thinking of when I replace my car later in the year I am considering leasing the vehicle, do you consider it a good or bad idea.

First question, would you be allowed to fit a towbar, any info on this would be useful.

Second, is there an age limit on leasing, I am 75 years old, would medical history be taken into consideration .

Thirdly, anything you consider I should take into account.

Like I said, I am thinking about it, so suggestion against the idea I want to hear, particularly people of ''three score years and ten' .

ask the leasing company if you can fit a tow bar and if your age or medical history is a problem. What they say goes! If you own the car you can do what you like with it and not stress that there may be a financial penalty to pay if something goes wrong that's not under warranty.

 

 

macafee2

 

Link to comment
Share on other sites

5 minutes ago, PandR said:

Wouldn't the lease be the least of your worries!!??

 

In our case with my Dad taking ill during the lease we did insure the vehicle for other family members to drive so it got used.  It was not a big financial burden so we were happy to keep paying.

The leasing company were very good with everything. 

 

My Mum did say once she wished they had not done the lease but after we had a chat about it she was fine. My Dad had worked until 65 then had done part time work. He was fortunate enough to have most of what he wanted. And the year before he passed away he had the experience of catching a train with me to fetch another "New"  car and drive it home. He was very happy and it was another day to remember.

 

If you have the money and are otherwise financially secure then go and do it. Fill your life with as much enjoyment as you can. What I used to tell my Dad and what I tell my Mun is spend what you have on what gives pleasure and experiences. If they leave this earth having lived life to the full, having what they want and going out spending the last penny then I'll be happy and I'll have the memories of how they lived. And that's worth far more than any inheritance they may have wished to leave.

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

I am taking  this all in, there some good arguments for and against, little concerned that if you terminate early there might be a financial penalty, my wife can't drive so the car would have to go back, question for the leasing company, keep your comments coming.

Swift Fairway pulled by a Ford Mondeo 2. 0 Business Edition 5 door hatchback

Adventure before Dementia

Link to comment
Share on other sites

 

32 minutes ago, Halohodge said:

I am taking  this all in, there some good arguments for and against, little concerned that if you terminate early there might be a financial penalty, my wife can't drive so the car would have to go back, question for the leasing company, keep your comments coming.

 

Whether you are retired or in work my advice for leasing is to consider if you have sufficient funds to pay all the penalty clauses should you have health issues or even just loose your job.

 

You will have to look at the terms and conditions, some lease companies work on a percentage + costs if you have to finish early and some will require the full outstanding balance. Some will allow transfer to a family member and some wont.

It all depends on who you go with and their T&C's

 

 

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

I have leased several times in between owning a car myself. The company that I was with only allowed factory fitted towbars and even then there were some restrictions that didn't allow one to specify a towbar on certain models, although the car manufacturer had approved them for towing.

Returning to buy after leasing a vehicle involved some negotiation with the insurance company in order to get full retention of no-claims discount (because the car was insured on behalf of the leasing company and not in my name), but it all worked out in the end. On the other hand, leasing under such conditions can be an attractive proposition if the car may otherwise be very expensive or difficult to insure one's self.

On the down side, the leasing company was very particular with the condition of the vehicle when returning it at the end of the lease. The slightest scratch over and above a specified repair allowance would be charged against the lessee.

Possible early termination of the contract was less of an issue with me because I always leased on a relatively short term basis anyway - only for a year.

 

Edited by Lutz
Link to comment
Share on other sites

2 minutes ago, Lutz said:

I have leased several times in between owning a car myself. The company that I was with only allowed factory fitted towbars and even then there were some restrictions that didn't allow one to specify a towbar on certain models, although the car manufacturer had approved them for towing.

Returning to buy after leasing a vehicle involved some negotiation with the insurance company in order to get full retention of no-claims discount (because the lease car was obviously not insured in my name), but it all worked out in the end. On the other hand, leasing can be an attractive proposition if the car may otherwise be very expensive or difficult to insure one's self.

On the down side, the leasing company was very particular with the condition of the vehicle when returning it at the end of the lease. The slightest scratch over and above a specified repair allowance would be charged against the lessee.

 

In the UK most Personal Contract Hire deals require you to insure the vehicle yourself so No-Claims is not affected. Some insurers may not insure leased vehicles though.

 

A good point about keeping the vehicles in good condition.

 

Most UK lease companies use the BVRLA guidelines for PCH and PCP returns.

https://issuu.com/bfwsn67/docs/fwt_volkswagen_financial_services_2?e=2001091%2F12361092  

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

Whilst Pistonheads and Caravans may not always see eye to eye, there is a very good lease thread on their forum https://www.pistonheads.com/gassing/topic.asp?h=0&f=255&t=1758049 .

 

Look at the "Best Lease Deals" thread also.

 

Golden rules for cheap/economical leasing:

Don't lease outwith warranty period

Chase the deal, not the car

Add no extras as usually the full retail cost of these is added to the lease cost - add a factory towbar at £600, it will cost you an extra £25 per month on a 2 year lease

 

You pay for servicing - either monthly (often not cost effective) or as required. With VAG longlife servicing on a 2 year lease, you will probably get away with no service costs, even if it means handing the car back a couple of weeks early.

 

Beware that getting a cheap car is manageable in a reasonable timeframe if you're not too fussy. Replacing that cheap car with another one 2 or 3 years later can be difficult as you have to plan and look early - 6 months is not unusual. Some lease financers will allow you or someone you to buy the car at end of lease but its not always a good deal.

 

There are many lease brokers out there that "bait and switch". They advertise a mega deal, but when you respond its either a mistake or they've just signed up the last one ".... but we have another similar model, only £100 per month more"

 

Leasing can be a very cheap way of getting into a new car, irrespective of whether you have the ready cash.

You do have to compare some PCP deals to PCH (lease).

Buying a used car is usually cheaper than leasing but has its own pitfalls. And some people want a new car, rather than a used one, even if the used one is only a couple of months old.

 

 

Link to comment
Share on other sites

5 minutes ago, AlwynMike said:

 

There are many lease brokers out there that "bait and switch". They advertise a mega deal, but when you respond its either a mistake or they've just signed up the last one ".... but we have another similar model, only £100 per month more"

 

Loss leader advertising has been stamped out for many years, the advertising and promotion legislation is an integral part of the CONC rule book published by the FCA.

Link to comment
Share on other sites

23 minutes ago, Grandpa Steve said:

 

Loss leader advertising has been stamped out for many years, the advertising and promotion legislation is an integral part of the CONC rule book published by the FCA.

 

All I would say to that is remember that one very important phrase in respect of anything legal (or illegal)

 

 

“Prove it” 

 

Trying  to prove a negative is virtually impossible 

 

PCP/PHC etc works for some but not for others. You need to do your homework very carefully before deciding. As others have said, beware of excess mileage charges. 12p a mile doesn’t sound a lot, but can add up very quickly. 

 

Andy

Edited by Mr Plodd

Experience is something you acquire after you have an urgent need for it.

Link to comment
Share on other sites

3 hours ago, Halohodge said:

I am taking  this all in, there some good arguments for and against, little concerned that if you terminate early there might be a financial penalty, my wife can't drive so the car would have to go back, question for the leasing company, keep your comments coming.

If you buy a new car and have to sell it early it will also cost a lot.

Link to comment
Share on other sites

1 hour ago, Mr Plodd said:

 

All I would say to that is remember that one very important phrase in respect of anything legal (or illegal)

 

 

“Prove it” 

 

Trying  to prove a negative is virtually impossible 

 

PCP/PHC etc works for some but not for others. You need to do your homework very carefully before deciding. As others have said, beware of excess mileage charges. 12p a mile doesn’t sound a lot, but can add up very quickly. 

 

Andy

 

Its worth doing the maths with regards to excess mileage charges. It can work out cheaper to have a low declared annual mileage and pay the excess, than to pay the monthly amount for a higher declare annual mileage.

Link to comment
Share on other sites

2 hours ago, Grandpa Steve said:

 

Loss leader advertising has been stamped out for many years, the advertising and promotion legislation is an integral part of the CONC rule book published by the FCA.

Whilst I can do nothing but agree with you, internet forum scuttlebutt, opinion, anecdote and irate respondents suggest it is far from rare.

 

Link to comment
Share on other sites

On 02/08/2019 at 21:25, Woodentop said:

The main thing to watch is the mileage allowance. Some providers only allow as little as 6000 miles per year and many more only 8000 - that's 160 miles per week. After that you pay a charge per mile on top of your other charges, and it might also affect the final payment figure for a 'higher' mileage.

Personally, if I can afford to buy the car then I would. Leasing might suit someone who travels to work by train and only uses the car at weekends but for practical purposes and especially if you intend to tour with the caravan the mileage allowance alone is nowhere near enough.

You can take a higher annual mileage allowance and pay a higher rental and final balloon payment. I increased mine from 8,000 to 10,000 for a nominal extra payment via VAG Finance.

Steve

Link to comment
Share on other sites

9 minutes ago, marchie1053 said:

You can take a higher annual mileage allowance and pay a higher rental and final balloon payment. I increased mine from 8,000 to 10,000 for a nominal extra payment via VAG Finance.

Steve

 

Final balloon payment is for PCP which is a way of buying a car on finance.

 

PCH or Personal Contract hire is leasing. There is no balloon payment, you never own the car and may not ever get the option to buy it.

Yeti 2.0TDi EU6 150 DSG 4X4 L&K, Octavia TSi Manual, Fabia TSi DSG, Swift Challenger.

Link to comment
Share on other sites

5 minutes ago, logiclee said:

 

Final balloon payment is for PCP which is a way of buying a car on finance.

 

PCH or Personal Contract hire is leasing. There is no balloon payment, you never own the car and may not ever get the option to buy it.

Earlier comments blended the 2 options, IIRC [watching BBC4 Danish Drama so not fully focused!].

Steve

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...