Leasing advice?

[Keef]

Now I know this should probably be posted elsewhere but not sure which section.

I’m after some tips & real world experience on leasing?
I’ve never leased before and looking for
A golf or seat Leon estate on a 2 year deal. Been looking at quotes but after tips from people who lease.

thanks in advance
Keef

 

[Aldi-Sport Chap]

Hi Keef
I've leased for longer than I can remember. All private so I pay VAT on the rentals. I do it because it has been the cheapest way to get a new car every 2-3 years. Every renewal I look at cash buy on drive the deal etc, PCP, and lease. I look at residuals/GMFV etc and compare total costs over the expected term. So far lease has won every time, convincingly. But I do search for deals etc on leasing.com and the like. It's not difficult to see why, the lessor gets the car VAT free as they are a business, the 20% saving can be passed to you along with usual fleet discounts.

Scare stories about return damage charges have never happened to me. The biggest bill I had, in fact the only bill in 10+ years, was £205 for 2 badly scuffed wheels and a 20cm scratch on the bumper. In my experience WBAC would have knocked £1000 off had I owned it. Simple rule is if you look after a car it's worth more when you trade in. The difference is you pay rather than get a lower trade in offer. If it as aPCP they'd no doubt adjust the GMFV for any damage.
Returning early can hurt but so would chopping in a cash purchase in the first year, as would terminating a PCP before VT point. I returned a BMW early (because it was an unreliable heap of *****) and was charged 50% of the outstanding rentals minus the VAT so £160 per month on a £400 monthly rental. I saved on a service and 2 tyres so lost very little.
One hit you need to consider is that you cannot avoid main dealer servicing, it's in the contract.
Another downer is optional extras. You'll pay for themover the lease so that £500 metallic paint will cost £20 per month etc. It pays to get a well specced standard car if you want that sort of thing. Golf seems to come loaded anyway.
Car is usually delivered to your door and collected in the same way.
Road tax is included. Maintenance can be too but I've never found it good value. Insurance is at your cost but it doesn't go up for a lease.
GAP is worth considering but lease GAP is different and you only need to cover rentals. I've paid £103 on a £40,000 A4
Taking it abroad has been easy. You need a document from the lessor but it's easy to get ad is usually free.
A car is a car is a car. Short term - 2-3 year usage, it's only about price for me.

 

[Keef]

@Aldi-Sport Chap
Thanks so much for the detailed response! Exactly what I hoped for but was starting to think I’d drawn a blank posting here. Thanks for taking the time, much appreciated. Do you have a preferred company to lease from or just shop around?
Cheers
K

 

[Aldi-Sport Chap]

Sorry I don't browse that often!
As for a leasing company, sadly I've found most to be pretty dire. Select car leasing in Reading left me wanting, full of promise but 6 months delay. All car leasing in Coventry told me I'd been turned down for credit, then when I challenged them they admitted they'd let someone else have my car "by accident". Bear in mind they are only brokers so once you get the car, you deal with a different outfit so they are just a finding service.
Currently I'm direct with VW Finance and they are equally useless. Comms are none existant I've had a few £50 apology cheques though so can't knock them too much. If it wasn't for the price I'd probably not have tolerated such service.
https://leasing.com is a great start but be prepared to be told the offer you've seen has gone and they'll offer you something more expensive that you don't want so move on.
https://www.pistonheads.com/gassing/topic.asp?h=0&t=1856732 This is an amazing source of deals. It does take work but deals are out there. End of quarter is a good time to bag a deal. But it depends on how fussy you are.
As I said earleir do the maths and make sure it's worth it. Don't be dragged into a lease over a purchase unless it saves you money 'cos I can't see what other bonus there is over other methods of aquisition.

 

[NevMan]

We used leasing.com to find Abarth 595 for wife. Was a stock car so all delivered within a couple weeks.

Select seemed pricey for what we saw.

 

[NevMan]

Back to OP original post, Seat offer more standard kit than VW, and often also do deals direct, bit at the moment good lease deals generally are few and far between given the general shortage.

I was considering a higher spec Formentor on lease before plumbing for a JCW Countryman that I managed to get with £6k contribution

 

[Migwire]

We've leased two cars this year and found the deals on leaseloco. Play around with mileage and terms because there are some quirks in the system.

On some vehicles, it was cheaper going for the next mileage bracket up than the one you wanted.

 

[Vertigo1]

My new A4 is a lease, arriving in the next few weeks.

I basically treat PCP and leasing interchangeably as I'd only ever give the car back at the end of a PCP agreement anyway so they're much the same to me. Just a question of which is cheaper.

This time leasing was the best option and no PCP quotes could match the lease. Of course you're gambling a bit on what equity you might have at the end of a PCP, I've lucked out massively on the current car due to the state of the used market right now.

Basically just used the comparison/tendering sites to get the best PCP and lease offers. Ended up going via Leasing Made Simple this time and the actual lease is via Arval.

 

[danA3T]

I’ve been around the houses and leasing always comes out on top - cost to get a new car every few years, less hassle, mitigate ownership it the car is a lemon.

The car you want is a commodity item, and all brokers are much of a muchness with maybe three or four actual financiers who actually finance it. The point being: shop around and be flexible. I really wanted a run-out Golf 7.5 Gti or R (which would’ve been my third mk7 golf for all of the lack of imagination) and my lack of flexibility meant there were no deals to be had - they were in demand, the mk8 wasn’t that popular back then etc.
But then changed tactic - set some search parameters on leaseloco and hotukdeals and ended up with a lovely A4 Black Edn Avant DSG for <£300pm. And it’s through the business so saving the vat and it’s decent on the P11D.
During my search I ended up with quotes against SEAT, Skoda, VW and Porsche. My mate rocked up this weekend with her new Enyak and was very impressed and kinda wished I’d held out but I’m too impatient.
also, don’t be afraid to knock the brokers down once you get them on the phone. Saying you will sign today for £Xxx is a powerful tool.
good luck .

 

[danA3T]

My new A4 is a lease, arriving in the next few weeks.

I basically treat PCP and leasing interchangeably as I'd only ever give the car back at the end of a PCP agreement anyway so they're much the same to me. Just a question of which is cheaper.

This time leasing was the best option and no PCP quotes could match the lease. Of course you're gambling a bit on what equity you might have at the end of a PCP, I've lucked out massively on the current car due to the state of the used market right now.

Basically just used the comparison/tendering sites to get the best PCP and lease offers. Ended up going via Leasing Made Simple this time and the actual lease is via Arval.

I will say, of all the brokers, Leasing Made Simple appears to have the best customer service. They did my last one with ALD fronting the cash.

 

[Keef]

Thanks all, great advice.

 

[GaryP]

Problem at the moment is there are naff all decent deals about, especially on anything remotely performance orientated. I'm still in my Golf R Estate, extended to mid November, likely to extend that to mid Feb 2022, then it will have to go back as will be 4 years old. For context my R Estate was £320 a month on a 2 year deal (Initial Payment +23 Payments / 24 months) You cannot get anywhere near that sort of price on anything like a Golf R, GTI, Clubsport, Seat Cupra. As much as the Used Car Market has gone bonkers, so has the Lease Market. The Pistonheads thread above is probably your best starting point. I think the way to look at leasing now is, if you want a particular car and will be getting it regardless - just compare Lease versus PCP with Drive The Deal or Coast2Coast discounts and take Lease if it is cheaper. Road Tax generally included in a Personal Contract Hire lease so worth remembering that when comparing against PCP - esp if car is upwards of £40k in value.

 

[Keef]

Thanks @GaryP
You didn’t buy my old S4 then ?

 

[GaryP]

It already had a buyer - went very quick!

 

[Paul Golding]

Probably too late to give an opinion, but I found PCP works great. I used AutoEbid to get the quote for the new car (local dealer offered me 1% discount and 4.9% finance, I ended up with 9% discount and 2.9% finance). WBAC, after knocking me about £300 for scuffs on 2 wheels, gave me £4,700 more than the settlement figure, so that covered the £5k deposit for the new car. I ended up with a CLA 250 Prem Plus for £307 per month and it was delivered to Essex by covered transporter from the Midlands where it was ordered from.

 

[NevMan]

Probably too late to give an opinion, but I found PCP works great. I used AutoEbid to get the quote for the new car (local dealer offered me 1% discount and 4.9% finance, I ended up with 9% discount and 2.9% finance). WBAC, after knocking me about £300 for scuffs on 2 wheels, gave me £4,700 more than the settlement figure, so that covered the £5k deposit for the new car. I ended up with a CLA 250 Prem Plus for £307 per month and it was delivered to Essex by covered transporter from the Midlands where it was ordered from.

Sounds good. Never heard of autoEbid before

 

[DantSaperon]

In the case of an inflated cost of renting area, it can stand for several months without making a profit. If the price is too low, you won't get the full value of renting it out.

 

[DantSaperon]

In the case of an inflated cost of renting area, it can stand for several months without making a profit. If the price is too low, you won't get the full value of renting it out.

Therefore, determine the fair value taking into account the size of the area, its condition, etc. If you are worried about the property, renting out to tenants with children or animals, you can take a deposit in the amount of 2-3 months' rent. In general, I started my business in the following way: I took out a mortgage from Mortgage Broker Sunderland. After that, I started renting 2-3 apartments at the same time, following the above tips and making a little profit. Then I was able to close the mortgage, and go out already in a net plus.

 

[LeahTerry]

Leasing has been my go-to for years too. I love getting a new car every few years without breaking the bank. I always compare cash buy, PCP, and lease options, looking at residuals and total costs. And let me tell you, leasing has won me over every time. The savings from the lessor getting the car VAT free and passing on discounts are hard to beat. Plus, those return damage charges? Never happened to me. Just take good care of the car, and you'll be fine.

 

[vanessajeer]

Leasing has been my go-to for years too. I love getting a new car every few years without breaking the bank. I always compare cash buy, PCP, and lease options, looking at residuals and total costs. And let me tell you, leasing has won me over every time. The savings from the lessor getting the car VAT free and passing on discounts are hard to beat. Plus, those return damage charges? Never happened to me. Just take good care of the car, and you'll be fine. Sure, you pay for any wear and tear, but you also get a higher trade-in value. Returning early can sting a bit, but so would selling a cash purchase in the first year. Main dealer servicing is a must, but road tax is included. And taking it abroad? Piece of cake with a document from the lessor. To sum it up, for short-term usage, it's all about finding the best price. By the way, if you have any financial questions, it's worth consulting with a Mortgage Broker in Basildon.

 

[AlexJordan]

Leasing a vehicle can be a smart choice if you're looking for short-term commitment and the latest models. It's great that you're seeking advice from those with real-world experience. When considering a lease, focus on factors like mileage limits, maintenance costs, and any potential fees.

 

[northpole]

Leasing a brand new car is nice but you never are the owner... I like to own a car straight out no loans being used either... it just means my cars are older and need a bit more tlc and maintenance which I enjoy doing and it enables me to run cars on a really tight budget.

 

[AlexJordan]

Leasing a vehicle can be a smart choice if you're looking for short-term commitment and the latest models. It's great that you're seeking advice from those with real-world experience. When considering a lease, focus on factors like mileage limits, maintenance costs, and any potential fees.

Getting multiple quotes is a good start, and reading reviews about specific leasing companies can provide insights. If you're interested in more personalized advice, consider consulting experts like the Mortgage Broker in Rochdale, although they mainly deal with mortgages. They might offer insights or direct you to resources that can help with your decision.