Long-term lease hire car

[HawkEye244]

I was thinking about trading in my current vehicle and getting a lease vehicle on a long-term hire contract. Does anyone do this ? Does it save you money each year ?

I was thinking it might be cheaper than owning the vehicle because often these hire packages come with insurance, tax, maintenance and servicing, etc, and you can change the vehicle at the end of the contract (or so I hear) - I currently pay out quite a lot each year on mechanic bills.

One thing to watch out for would be getting stung on hidden fees. Other than that it seems quite exciting.

Feedback welcome.

 

[Ian H]

Apparently some lease deals cost less than the depreciation if you bought new. If you bought 3 years old it would be cheaper but then you have MOT’s and stuff.

 

[mattylad]

Afaik you pay for every little scratch or broken thing when returning it.

 

[motorbiking]

If you like highly depreciating cars and want a new one every couple of years, then a lease can work, because of the internal discounts offered by the manufacturer to the finance company. If you don't mind driving your car for 10 years, then it wont.

One of my cars I bought with just over a 1000 miles on it at 9 months old, It was list price something like 38-40k, allowing for the trade in I paid about 26-27k for it. Its 9 years old and is probably worth about 6-8k servicing mot tax, tyres and insurance is probably 1100 a year.. So call it £3,500 a year - with nothing down a 3 year lease all in seems to be about 9k per year. But then I have a 9 year old car, not a new one every 3 years

 

[HawkEye244]

If it's not cheaper then I'm not interested.

I just don't know anyone that does it so it's hard to get the inside knowledge.

I guess a good place to start would be working out exactly what the current vehicle is costing me per year all in,.

 

[HawkEye244]

If you like highly depreciating cars and want a new one every couple of years, then a lease can work, because of the internal discounts offered by the manufacturer to the finance company. If you don't mind driving your car for 10 years, then it wont.

One of my cars I bought with just over a 1000 miles on it at 9 months old, It was list price something like 38-40k, allowing for the trade in I paid about 26-27k for it. Its 9 years old and is probably worth about 6-8k servicing mot tax, tyres and insurance is probably 1100 a year.. So call it £3,500 a year - with nothing down a 3 year lease all in seems to be about 9k per year. But then I have a 9 year old car, not a new one every 3 years

To be honest if lease vehicles are as complicated as you made that sound it's not a gooer for me. I've no interest in being prey to some scumbag company trying to slip all sorts of add-ons and fees past me. Perhaps the industry needs a good 10 - 20 years before it becomes viable. Maybe Elon musk can come up with something haha.

 

[Ian H]

What car are you after?

If you want something that’s £200/month over 3 years you need to think If you bought the same car would it loose more than £7200 in its first 3 years?

Weight that up with whatever free servicing they throw in and see if it’s right for you.

 

[HawkEye244]

What car are you after?

If you want something that’s £200/month over 3 years you need to think If you bought the same car would it loose more than £7200 in its first 3 years?

Weight that up with whatever free servicing they throw in and see if it’s right for you.

Good call and it's what I need to do - do the numbers. Clearly for most people it's cheaper to either buy a vehicle or get one on finance, otherwise I'd be hearing more about it.

I honestly have no idea what I want either so that's not a good start is it ? I guess something that would handle well off road because I do a fair amount of hiking.

I was in the beacons at the weekend and got a lift with a friend who drove us in a land rover, but where I live in the city it would be a nightmare to navigate Monday to friday. I'm tempted by small vans as well.

 

[EFLImpudence]

You don't need a car (off-road or not) to go hiking. Hike farther.

 

[Ian H]

Simple, get a helicopter.

 

[bernardgreen]

I guess something that would handle well off road because I do a fair amount of hiking.

A friend leases a top of the range Land Rover. In the terms and conditions of the lease "Off roading" is on the list of non acceptable. She is limited to a few thousand miles per year. Security against theft has to be enhanced and several other hidden costs have to be taken into account

Is it cheaper than buying ? She thinks not but it suits her life style to have a new car every few years.

 

[motorbiking]

The thing you are missing @HawkEye244 is that for some, financing is the only option (although it isn't).

The question can simply be:
Do I have £30k for a new car or do I have 3k down and £300 a month. For a small business you often want your outgoings aligned to your income, so a monthly lease can make a lot of sense.

Get yourself down to blackbushe and pick up a bargain

 

[Notch7]

A friend leases a top of the range Land Rover. In the terms and conditions of the lease "Off roading" is on the list of non acceptable. She is limited to a few thousand miles per year. Security against theft has to be enhanced and several other hidden costs have to be taken into account

Is it cheaper than buying ? She thinks not but it suits her life style to have a new car every few years.

Mind you most Chelsea tractors dont need to do much off roading in Waitrose car park

 

[SirGalahad]

If it is for personal use what about PCP? If you want it for your business then you can claim the lease costs as a legitimate business expense.

 

[Doug99]

If you like the idea of driving a top spec car without having to shell out big £££ as an outright purchase, then leasing is an option.
I have just taken out a 3yr personal lease with maintenance and will hand the car back and exchange for another new one.
Fair wear and tear is permitted so will not be penalised for minor scratches/dents. Check out the Fair Wear and Tear Guide produced by the BVRLA
I used the What Car? website to research numbers with different car specs / contract lengths and happy with the figures.