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robby14

Car Leasing

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Car leasing would suit me well as I love to swap cars every year or so and don't love having to pay for the privilege. Keen to know more.

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The huge recovery in UK car registrations is driven by this kind of personal contract purchase (PCP). Purchase seems a strange word to use as you are not actually purchasing the car.

 

It is ideal for those who need a new car and have a fixed budget. You will not own the car at the end of the period but can choose to refinance the settlement value and keep the car if you wish.

 

You normally pay a deposit followed by 36 payments and at the end of the term, the agreed residual value amount will be less than the true value of the car. The difference can be put towards another deposit for you to lease another new car of the same brand. Or you can choose to buy the car and keep it.

 

The pitfall I can see is that this will have a huge impact on used car values with more cars coming onto the market after three years at a lower price. This will be a problem for those who choose to buy their new car as values will fall by a greater amount than at present.

 

If you don't look after the car this will affect the residual value at the end of the term.

Edited by Max Power

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What's included in the lease costs? Is it just add fuel and insurance? is the servicing, VED and maintenance costs (tyres etc.) covered by you or the owner?

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You just lease the car, most manufacturers do a service package which can be rolled into the deal. You'd be responsible for tax, insurance, tyres, body damage and anything over and above the normal service.

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I forgot to mention that quite a few manufacturer finance houses will not write finance on the IoM. If they don't, similar packages can be drawn up by most Manx based finance companies.

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Using leasing for my daughter in UK. Skoda Citigo at about £80 per month. Lovely small economical car for running about town where she lives. Has also used it for longer trips on motorways. £20 car tax - yes £20 not like our robbing bastards. 3 years free servicing. Can then buy out or use as deposit for new lease term.

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Know a young fellow who doesn't earn a lot but finds enough to lease a flashy car. Don't know why, but it's important to him. Seems a good way to throw money away to me, but each to their own.

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Know a young fellow who doesn't earn a lot but finds enough to lease a flashy car. Don't know why, but it's important to him. Seems a good way to throw money away to me, but each to their own.

 

If driving is his passion then it's certainly not throwing money away. At least not more than anything else people do to make themselves happy.

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Know a young fellow who doesn't earn a lot but finds enough to lease a flashy car. Don't know why, but it's important to him. Seems a good way to throw money away to me, but each to their own.

 

If driving is his passion then it's certainly not throwing money away. At least not more than anything else people do to make themselves happy.

 

Yes. As I said, each to his own.

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Bit of info on this web site here:-

 

http://www.neva-consultants.com/dealer/neva-isle-of-man

I think that's business leasing, if you do personal leasing with them you must show a connection to a company and be prepared to pay the VAT element?

 

This is a manufacturers scheme. It's VW which don't unfortunately operate their finance offers here like several others but it does explain the system.

 

http://www.volkswagen.co.uk/buying-guide/solutions

Edited by Max Power

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