About Car Leasing

• [finance lease], under which only the vehicle is leased,
• [operating lease], under which the vehicle and its running costs are packaged into the lease, and
• [novated lease], which is a form of [salary packaging] that some companies allow their employees to use to [finance lease] a vehicle.

• [Hire Purchase]
• [Closed-end leasing]
• [Installment plan]
• [Leasing]
• [Business Contract Hire]
• [Chattel mortgage]
• [Novated lease]

• Vehicle leasing explanation - structure and tax implications of vehicle leasing in Australia

Car leasing

Questions and Answers

Car Leasing?

Q) I am thinking about leasing a car for a few years does anyone know if it is worth it and if not why????

A) It's amazing how little people understand leasing. To EVERYBODY (including the dealer) but the bank it's exactly the same as you buying / financing the car outright. You're basically just agreeing to give the part of the car back that you haven't used after the lease is over. You're only buying and paying interest on "half" of a car. This is basically the same as buying a car and trading it in every 2-4 years like most people do anyway. Only you don't have to worry about the trade-in value of the car changing, you'll have a new car every few years, and you'll usually have the car when it's under warranty and needs less maintenance. Trust me, if you keep a modern car for 10 years like the people on here are saying, you're going to be paying WAY more than a lease would cost in repairs alone. I'm glad those people exist, though... otherwise who would the bank sell my sloppy seconds too?

car leasing companys?

Q) does any body in the UK know a car leasing company that lets you buy a car from the dealer of your choice? instead of getting a car they have that has already been used. i know its a bit confusing but you should understand

A) pay cash then you get wot u want

is car leasing a good way to avoid the hassle of buying and maintaining a reliable vehicle?

Q) I need a reliable car for work and don't want to get a loan to buy a new one. Has anyone any experience of personal leasing?

A) I puzzle at some of the other answers. I wonder if some of them have ever really leased a vehicle and which ones read your question. Leasing a vehicle does not relieve the driver of the maintainence responsibilities. The financial and maintainence responsibilities are very similar to those of someone financeing a car. You will still have to be the registered owner of the car (the leasing company will be the lienholder, similar to the bank bieng the lienholder on a financed car.) so YOU will still need to arrange insurance. AND, since you will be leasing a new car, minimum liability insurance will not be enough. You will need to pay for comprehensive coverage. All deductibles will still be your responsibility. The usual periodic maintainence is out of your pocket, unless this is part of the package you finance. (Yes, you still have to make finance arrangements, similar to a loan) Mechanical breakdowns not covered by warranty are your resposibility. Wear and tear items such as lights, wipers and tires are out of your pocket, etc. I think these guys are confusing car leasing with car rentals. The biggest difference with a lease agreement is 1. The lack of substantial down payment saves the need for 5 to 10 thousand dollars of cash, up front. It usually only takes a couple of thousand to drive away in a leased car, 2. You don't have to make 15 to 30 thousands of dollars worth of payments to purchase the car outright. At the end of the lease term, you may be able to turn in the keys and walk away free and clear. So, it is still as much of a hassle to lease a car as it is to buy. The finances are major, but may still offer advantages to you. But, based on your questions, the advantages may not be what you expect.

Can anyone recommend a good car leasing company for private users?

Q) I have decided to lease my cars. I have done the finance and for my use and situation leasing a new car every 24months is my best option. I do however need to find a good, reputable company. While they all seem to charge about teh same I need one which I know wont vanish in a few years. If anyone has any recommendations from personal use that would be much appreciated. Many thanks I should also mention, im in the UK.

A) If you are very sure that you want to lease, then remember that all the people that are being quoted are probably brokers. You can still get a fantastic deal from the dealer, so try there as well as the broker. The best thing to do is get a leasing company/brokers quote and take it with you, then get them to see if they can beat it - harsh but fair practise. It also means that you can check out the car - a broker or leasing company (they come in lots of disguises) won't necessarily know the full spec of the car and I know of a person who leased a 7 series, not realising that they needed to change the steering wheel option which was FOC, they are now stuck in it for 2 years - the dealer queried, the broker confirmed! If you don't fancy the dealer route then try Skyfleet , they are about the cheapest on the marketplace, the guys are really friendly and will get a deal for you (they have been going about 15 years) http://www.skyfleetltd.co.uk/ AND as an afterthought, most people will tell you it is more expensive to lease, look at both costs, sometimes manufacturers have special deals which means it can work out cheaper to lease (eg last year BMW X3 at <£300pm). BUT be sure that you want to keep the car the term, if you are going into a contract lease, if you mean Lease purchase, this is a different thing and you are liable for depreciation.

Business car leasing?

Q) i recently became self employed but as yet have not started trading therefore no accounts, however i did submit a tax return form for 2006/7. Could you tell me if there are any companies that would lease me a car under a business rate as oppose to a personal contact whereby i'm having to pay VAT.

A) Unfortunately if the company is VAT registered regardless of the rates you will have to pay VAT as it is illegal for them not to charge VAT if they are registered for VAT, unless you are VAT registered then you could claim the VAT back

Leasing a car in the uk?

Q) I am younf only 24 was just wondering in estimation what i woudl pay monthly for a leased car, say a alfa romeo 147 or a civic and how much insurance will set me back.

A) Anything between £270 and £350 per month to lease. Not sure about insurance.

Car Leasing Prices Mini Cooper?

Q) I'm intending to lease a Brand New Mini Cooper I'm not sure whats a good price and whats a bad price I'm looking to lease for 24 months at 20k mileage a year. The cheapest I've been given so far from looking on the internet is £230 a month Is that any good? Or does somebody know if I could get it any cheaper. Thanks Well thats alrite cos you won't be driving it

A) Ive got a mini one i BROUGHT it a year and a half ago which then was 2 years old, i had it on finance over 3years and paid £203 a month!!!! I think that is expensive huni! Mini's are a fantastic car dnt listen to what anyone says jealously gets in their way!!!!

serco car leasing for herts cc social workers?

Q) contact wanda wilson caroline alway social worker new starter on 13th February 2007

A) Is this a job vacancy?

Does anybody have any experience of a company called DISCOUNT CAR LEASING?

Q) I am considering using these people as their quote is the best, but I am so wary of scams these days that I just wondered if anybody out there has used them and, if so, was it a good or bad experience? Thank you. diycolin Please email me as you seem to be very helpful and know a bit about this and have helped me before.. Thanks. Sue.

A) I cannot tell you about this company, I have checked them on the Internet though and would ask you to check the following. 1) They quote a monthly price. . but for how many months. For example on a 24 month contract the do not say whether it is 3 months down followed by 21 or 24 months, or maybe the 'up front payment is different again. 2)You will almost certainly find that you are responsible for the condition of the car at the end of the contract. Look at the 36 month price of the Land Rover TD Adventurer. . it is very low. . but they are there to make money and you must ask yourself How do they do it? 3)Check the excess mileage charges carefully, when you have a nice new car it is always tempting to use more than you think. 4)They say they are not car salesmen but financial experts. Well, if they know nothing about cars how do they maintain them? Lastly if you have a good credit rating, go to major Finance houses, Lombard North Central, UDT, LLoyds TSB and others, (shop around) and ask them their best rate per thousand over however many years. Tell them you want to own the equity in the car at the end of the deal, they will give you 95%. Then find the best price for the car you want from, the main dealers and see how much it will cost per month. And you will have the best deal. Good luck,

outline the challenges you would face as a public sector account manager in the car leasing business?

Q) I am interested in the areas of account management, new business development and Target achievement in the public sector fleets.

A) Main one is competition

Car Leasing?

Q) What are the credit requirements of leasing a car. Do you have to have perfect credit? Can a lease payment change from one place to another on the same car? Is there a way to negotiate the lease payment?

A) Credit requirements for leasing and financing are no different, if you qualify for one in most cases you qualify for another. If your credit is very derogatory or very limited leasing may not be an option, because the banks that approve bad credit customers don't generally have leasing programs. With the state of the auto industry today many lenders have become more lenient in their credit approval criteria, because everyone is fighting for a small pool of customers. So this is a good time for someone with marginal credit to try for approval. Lease payments are dependent on 3 things essentially, price of car, residual value (end of term value) and money factor (or cost of funds to loan). Residual value is not negotiable, although you can change it based on the amount of annual mileage you require. The points of negotiation will be the price you pay for the car and what they charge you for the use (money factor), there is generally manuver room in either of those areas, so yes you can negotiate the payment based on what they are willing to sell you the car for and how much they mark-up the rate.

Car Leasing?

Q) How exactly does leasing a car or truck work? What are the pros and cons? Is it safe? Fire4511 thanks, how about if I agree to lease for 3 years but decide after 2 years I want to trade for something different, can I re-lease on a different car?

A) If you want a new car every 2 or 3 years, leasing is the way to go, but if your keeping it for its life, 10-20 years, you should buy it. If you change your mind and decide to keep it during a lease, it will cost you, if you put on to many miles it will cost you, if you give it back in poor shape, it will cost you..... :(

car leasing?

Q) can you lease a car for just 2 years? instead of 3?

A) Absolutely although the payment may be a a bit higher

Car leasing?

Q) Car leases seem to be to good to be true. What's the real deal? How do they work and what are the pitfalls?

A) First, add up all your costs for the 3 years or so that you'll lease the vehicle. Down payment, monthly payments, acquisition fee, etc. Are you willing to throw that money away? You're talking maybe $10,000 on an average car. Then look at buying a new or slightly used car. It won't depreciate that much if you buy it right.

Car Leasing Please answer?

Q) If someone hits my leased car and the damage is to be paid out of someone else's insurance, who gets the insurance money, the leasing company or me who pays the lease. Does the leasing company even care that there is an accident?

A) The insurance check goes to the repair shop. Technically, there is no need for the lease company to know about the accident, as long as the repairs are done professionally and with OEM parts. If the repairs aren't done well, you'll get a bill from the lease company after you return the vehicle. Having said the above, some lease companies want to know about accidents and want to be involved in the repair process. Some even want to inspect the car after repairs. You should check your lease contract to see what is required. To be safe, you should always call the lease company to determine their requirements.

Does car leasing affects your Credit history?

Q) I'm debating whether to buy (finance) the car or lease the car? If leasing doesn't afect the credit history then this would work for me because in next few months i've to apply for home mortgage as well and so i donot want my mortgage int rates to go high based on car's amount sitting on my account. ANy advice?

A) Yes it does. Buying a car is better on your report then leasing. Not score wise, but to the lender. It will take 6 on time payments on your history either way in counter acting the affects of any major purchase. A lease does not count against you, but when the lender sees that you are spending money on something you own virsus doesn't own it is a small factor (collateral). I think what you are refering to is DTI. Debt to income value. This is base on how much you have coming in virsus going out. There are 18 points that determin a mortgage. 1. Credit history. Does the borrower have 3 trade lines with no lates. ( A trade line is a credit card, car payment, mortgage or student loan. Anything that is not a utility bill that you pay on a monthly basis.) How much is collateral based(secured), and how much is not. Do they have any bad marks on thier credit? Judgements? Tax leins? Law suits? Defaulted credit? 2. DTI Debt to income. How much is going out virsus comeing in. Can they afford this house? 3. Loan to value. (LTV) Are they putting any money down? 4. Recent major purchases. Are they spending too much money to quickly. 5. Disposable income. Do they have any extra money that has been sitting in an account for more then 3 months like savings, IRA 401k so on. 6. Credit score. Is there score under or over 660? How much? 7. Income source? Have they had the same job for 2 years? Are they self employed? Can they prove thier income? 8. Rent or mortgage history. Can they prove that they have been paying on time, and can they provide 2 years history? Those are the big ones, and then a whole bunch of little ones. If you are counting, count the sub-questions because they are important. My advise is to have a professional in the mortgage and banking industry look at your report and see what you need to prepare for a purchase BEFORE buying or renting a car. It may be used for or against you, and you need someone who knows thier stuff to get you ready.

One year car leasing?

Q) Hi. My husband and I are staying in the U.S for only one more year. The leasing of our car is about to end and I would like to lease a car for only one more year since we are leaving. Does somebody know if i can do this and where?

A) Some dealerships will offer lease options for 12 months but the payment will be higher.

I have question about car leasing!!?

Q) I've seen lots of TV commercial that says $299 a month 2000 due at signing. What does that mean? I can just pay $299 a month during the leasing term? and pay $2000 at the end of the contract? Can I lease a car without credit? I have no credit history. Can I lease a car? Somebody help me please. I love you guys.

A) This means that when you sign the lease you pay $2000 and then every month after that you pay $299 until the lease is up. 36mths?? 48mths?? ...whatever it is. Then, when the lease is up (the 36 mths) you will need to finance the rest of the balance or pay it in a lump sum. Usually you can figure on half of the price of the car will be owed when the lease is up. So for example: If the car is $10,000 you will make 36 monthly payments and it will pay the car down to about $5000. At the end of the 36 months you will either pay the $5000 or finance the $5000 for another 36 months. Also, you must stay under a certain # of miles each year, usually 12,000 or 15,000 something like that.

Is interest on car leasing deductible?

Q) The car is use only for private. If interest on home mortgage is deductible, I wonder if interest on car leasing is deductible too ??

A) No, there's a special law to allow deduction of home mortgage interest, but it doesn't allow you to deduct other personal interest like car payments or leases, unless you have a business and the car is used for your business.

If I cannot write off a car lease are there any other advantages to leasing a car over buying?

Q) Are you thrownig out money by leasing.my wife just got in a accident with our bought car so know we are a big loser when trading it in which does not happen when leasing.

A)