Experience of Car Leasing Anyone?

[QfanatiQ]

Experience of Car Leasing Anyone?

Good news, new job offer. Better new, I will be accepting. Wonderful news, Car Allowance given (or company car). Sting, allowance only applicable if car 5 years or younger.

The company cars are good, a free car (not forgetting TAX) is not bad, but when I look at Leasing, there is a whole new world or choices.

I Read about Balloon Payments
I Read about interest
I Read about additionals (add ons of servicing etc)

I need to find some kind of guide of how to arrange and obtain certain information. I have not been able to formulate it so I know to go in informed!.

Furthermore, I was thinking of going to a company, not direct to manufacture, so when term up, I role onto a different car, and if desired a different manufacture.

Anyone with any experience that can advise?

Cheers.....Q

[hoponbaby]

A lot depends on personal choice - company cars are often restricted on the models available whereas with a car allowance you are free to choose what you want.

For the company car option you need to see what cars are allowed and from there the manufacturer list price and co2's to work out the tax implications. Is fuel for private use also being provided? From a tax perspective you want a car that costs next to nothing and has the co2 emissions of a gnats arse, not much fun to drive though.

For personal you need to choose a car and then get quotes on the lease/purchase cost (there are loads of brokers offering broadly the same deals) but costs depend on the mileage you will be doing and how specific you are over the car. There are some fantastic deals around where manufacturers are offering major discounts to shift units.

[QfanatiQ]

Looking at lease catches. I know about Company cars. Wife has one, so been through the CO2 etc.

Q

[Hangman]

This is what I have done

I bought a Mazda 6 2.2d Sport brand new for £20k, I arrange a lease purchase agreement through Lombard, £4k down with 60 monthly payments of £270 with a final balloon of £3k at the end.

I did this to keep my car payments low enough to be covered by my car allowance after tax, but where it gets interesting is there is a rule known as the 1/2 & 1/3 rule. The bit that interests me is once I have paid off 1/2 the cost including interest I can simply hand the car back to Lombard with no further come back. I will be handing mine back in April and will then do the same thing again for a new car.

[QfanatiQ]

The bit that interests me is once I have paid off 1/2 the cost including interest I can simply hand the car back to Lombard with no further come back. I will be handing mine back in April and will then do the same thing again for a new car.

Is this a Personal Contract Purchase or a Personal; Contract hire?
Once this 1/2 you mention and handing back, does that still include the requirements for the end 3k ballon?

Looking at Lombard, this is the best list or guidelines I have seen. It is good to read the two options. And looking, I think may = a better car (perhaps).

Cheers.....Q

[hoponbaby]

That's under a regulated HP agreement, PCH is different and to hand it back early will normally be very expensive (say remaining rentals less 25% discount).

[littlebilly1]

My brother is the IT Manager at a company that do HP and contract hire on vehicles if you want another place for quotes and options


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[Hangman]

Is this a Personal Contract Purchase or a Personal; Contract hire?
Once this 1/2 you mention and handing back, does that still include the requirements for the end 3k ballon?

Looking at Lombard, this is the best list or guidelines I have seen. It is good to read the two options. And looking, I think may = a better car (perhaps).

Cheers.....Q

No when I hand the car back I will not be liable for any further payments.

My boss put me on to this deal, he has been doing it himself for a number of years.

[QfanatiQ]

No when I hand the car back I will not be liable for any further payments.

My boss put me on to this deal, he has been doing it himself for a number of years.

This sounds like the best way forward, a fixed amount and no further payments. I am going to have a chat with the Lombard. Even with this, I have been told to look out for interest.

Some things are still a little above me.

Does anyone know a turnaround, some agreeing car, to getting contract, being found eligible to then getting vehicle delivered. First time is likely to take the longest.

Cheers.....Q

[hoponbaby]

It depends on your credit rating and whether the car is in stock, can be a week or so upwards

[QfanatiQ]

WOW, stock pending, that's a lot quicker then I thought!

Cheers......Q