Quote:
Originally Posted by SnoopZ
What happens at the end of a car lease period, you hand the car back and have nothing to show for it or you continue leasing?
|
Yes, you hand it back, and lease another.
---------- Post added at 23:19 ---------- Previous post was at 22:59 ----------
Quote:
Originally Posted by Julian
Another way is to buy the car MUCH cheaper through one of the many sites available and arrange your own finance, typically at much lower rates.
|
Yes, you can almost certainly buy new cars cheaper than the price they quote, but unless you plan on keeping it for 5+ years, then buying a car is not really any cheaper than leasing it.
To get the same level of payments, the finance would have to be over a much longer period (or much higher payments over the same period). You also have to arrange to sell it when you decide to change.
In very simple terms, leasing costs are worked out from the initial cost of the car, minus what they think they will get back for at after x years, divided by x years (with a bit of profit for them of course).
For example, a friend of mine leased a Ford Fiesta, £12,500 to buy new, at £130 per month, over 3 years. The total cost to them (with initial rental, plus fees) will be £5,120. To buy it (even at say £10,000, if they could get it that much cheaper) would be about £300 month for a loan (to hit £130 a month, the loan would have to be over about 8 years).
Leasing is not for everyone, but if you want a new car every 3/4 years, and lowish payments, its pretty hard to beat.