New car leasing

Questions and Answers

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.

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

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?

I have just registered as a childminder and am thinking about leasing a car for this.?

Q) I am a little confused as to what i need, will it be personal leasing or business leasing. Does anyone know a good, reliable car leasing company that will not be too expensive and does not ask for a huge deposit. I am desperate to try and sort this out asap

A) Don't, not until your 'Childminding' business is settled otherwise you could find yourself signed into a leasing contract you can't afford to get out of, far better if you bought a small reliable second hand car which you could sell again if necessary. PS Good luck.

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

Car leasing thing?

Q) I decided to go on to the website youngmarmalade.co.uk and order a renault clio brand new, now it says you can put a deposit and then do a personal contract plan and pay about 180 per month over 3 years then you can give the car back. it says the APR is 10.9%, is this a high rate? Ive not had to deal with interest rates before so im unsure

A) why not BUY a car ? leasing is a total ripoff.. you pay for the car, and they take it back when you are getting near the payoff point....don't be fooled

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!!!!

i need to lease a car for my new job next to london. where do i start ?

Q) any leasing companies u recommend ? what to ask about and pay attention to? i will be getting car allowance from my new employee. im in IT sales.

A) If you want to hire a car, contact a company providing that service! If you want to lease one(hire purchase), contact the dealer of the car of your choice!

Is buy a new car or leasing better if staying for a short period??

Q) Hi!! I just moved to Beverly Hills from VA, my car is still in VA and I am going to grad school this fall. So of course, I need transportation!! My parents are taking care of my car while I am here in California, but dont want to go through the hassle of getting it and driving all the way here or really dont want to spend money on getting it shipped....my credit is good....so what should I do??? Buy a new car or lease one for the time that I am here. Or just go through the hassle of getting my car from VA to CA????

A) Well if you plan to keep the car for 4 years or longer, then purchase. If you are going to want to get rid of it in 2 or so years, then lease. It doesn't matter how many miles you drive because you can get a high mileage lease and you will be better off turning in a 2 year old car with 45k miles on it than trying to sell it because you will be upside down in the loan. I hope this helps. You can always email me if you have more questions. Good Luck!

Leasing information for a used or new car?

Q) I am a student that is thinking about leasing a car. I would like to more information about the leasing option? And where are leasing dealerships located at?

A) Fleecing. Fleecing. Fleecing. That is what leases are unless you are a business owner in the right tax bracket. A student should never lease a car, it will not be tax deductable, you will not own it, you will still have to maintain & insure it, etc. Please, for your credit's sake, do not lease a car. Buy a car thats economical & low maintainance. When you graduate and land a decent job and have some cash flow, then BUY a new car.

Does leasing a new car lower your credit score?

Q) I recently leased a new BMW from the dealer. I subscribe to Experian's credit report/score service. Prior to the new lease my score was aroun 725. 2 months later it has dropped to 688. There has been no other action on my report except the new car. No other accounts and everything still on time and current. Im 20 years old so my credit history is not that long yet but I was told car financing usually brings up your credit score. Any ideas as to why it would drop this much? Thanks!

A) Here is the deal. Every time ANY ONE pulls your credit, that is you or a creditor, you are docked points. The only exception to this rule would be if you are a Guarantor on a loan for an LLC or something like that which would require periodic account reviews that wouldn't doc your credit score. Yes, the car lease MAY boost your score when you have a year or more of no late payments, etc. but to get that lease, they pulled your credit at 2-5 points. Add to that your subscription, at 2+ points a report, and you have just taken 37 points off your score. My advice to you would be to discontinue your subscription to Experian. Unless you have a major problem with a creditor or you havea reason to be concerned about identity theft, that subscription will do more harm than good. Most states have a law that entitles each consumer to 1 free credit report every 12 months. It won't have a score on it, but it will allow you to see what is out there. Something else to condider is every 18 months or so pulling a tri-bureau report. They are the most comprehensive report because they are pulled from Trans Union, Equifax and Experian, the 3 most often used reporting bureaus. It is good that you are concerned about your credit, but don't go crazy over it either. By the way, a scoreof 688 is good. A 725 at 20 is awsome. It may all be new credit, but that is a great place to start. Keep up the good work.

is Leasing a new car a bad idea for someone young and just starting out?

Q) i work at a dodge dealership and although i love the salesmen, i'm still not sure if i can trust them to not take advantage of a young gal trying to get into a new car... i do get discounts... and my current car is broke down... and not worth fixing... i'm able to lease a new dodge caliber for 3years at only 215/mo. is it worth it?

A) read all of this, i know it is really lenghty but i used to sell cars so read all of it no....no.....no.....your best deal would be to buy a used car at wholesale or $1000 dollars back of book.. research the car you decide to buy thoroughly.. even if you decide to trust them they would rip off their grandmother... so don't trust them,,, once you buy it it's yours... and if they switch you into another car then you research that cars value first before buying do-not...do-not accept their word on what it is worth... research... remember it is your money you are spending.... don't buy the alarms,, don't buy the scotch guard and don't buy the paint sealants,,, they are stealing your money,,,, if you buy a used car get one that would still have a factory warranty remaining,,, ie hyundai carries a 10yr 100,000 mi warranty,, if you buy a warranty they will sell you at cost... the at cost they are giving you is a profit to them,,, research the true cost before you buy,,, again do not accept their word do your research,,, shop them at another dealer if you have to,,, get the best deal,,, again remember it is your money and you decide to spend it... the best tactic is use your innocence and just act real unsure of yourself and be indecisive and never ,,,never ,,,never make the deal in one day,, take days or weeks to decide,, and even get tearful and just keep saying i'm scared and i'm not sure... but hold out to the cheapest price possible..........and get the lowest interest rate,,, check credit union rates and bank rates first,,, know your credit worthyness all of this stuff is profit for the dealership as well,,, do your research first,,,if i am repeating this too much it is because it is the most important info you will ever have,,, do you homework,,, a brand new car will depreciate immeditely ---immediatly ---upon the time you pass the driveway of the dealer ship to the street so if you buy a 15000 car it will lose value instantly to about (what they would buy it for) so if you buy a 15000 car and rwreck it the same day the insurance will also only pay for what it is worth (much less than 15000 so check your insurance coverage as well,,, and your insurance costs are higher on leases due to higher coverages required by lease companies,,,due to the liability linking you and the lease company together as a team....but the higher coverage is not all that bad of an idea to protect you as well but you should know this as well... i hope i helped you a bit i used to work as a salesman and even the best intended salesman does not control the deal,,, so as long as they make money on a deal they will sell the car,,,,if they feel they can get more money from you they will hold off... and fight for every dollar,,,, so you have to be very determined to fight for yours, also remember the $5.00 a week they want (one trip to mcdonalds) their line is you can't even get a happy meal or something for that,,, adds up to 20-23 a month and over 60 monthes turns into $1200-1380 and that is not even including interest.. and it is your money,,, but if you give in it is theirs to spend,,, pay attention,,, the owners and managers all have nice houses, nice cars,, and fancy stuff,,, they didn't get this stuff by being anybodys friend,, they got it from i am going to make you a good deal,,, good luck and i hope that all of this only helps and doesnt scare you off,,,, it shouldn't just think of every dollar yuo save is dollars you get to spend for yourself....

How do I calculate my savings on leasing a new vs a used car? Is there a formula?

Q) We cant agree on whether there is a savings! If we lease a new car we pay a premium though we get a warranty. If we lease a used car I assume we don't pay new car prices though we are charged more interest and must buy a warranty? We need to hear from you as to what to do!

A) A lot of it depends on how you classify savings. A monthly lease payment is usually cheaper. This saves money on a monthly basis but a conventional purchase is usually less expensive in the long run. If you are going to lease do so ONLY on a new car. Leasing used is about the worst thing you can do. If you lease I recommend a manufacturer incentivized lease (high residual, low money factor) these can actually be a very smart decision if the terms are right, you take care of your cars and stay within the miles. Although, buying a 1-2 year old car is usually best considering the massive depreciation seen on new cars these days. You can usually get a very good extended warranty ( bmw and lexus both have excellent CPO programs ) and the car will have a lot of life left. If you email me some info on your specific situation I can help further. andrewmiller1998@yahoo.com PS- Contrary to popular belief leasing is not always the most expensive way to purchase a vehicle and you should never buy a used Honda as the difference in price between new and used is to small to justify it.

What questions should you ask when buying or leasing a new car?

Q) Looking at getting a new car. Just wanted to know certain questions you should ask. Not sure yet whether its going to be financed or leased. Any help would be great.

A) figure out which option is most realistic for your needs - if you do a lot of driving (like me), leasing is definitely out of the question. they only allot 10-12,000 miles per year, which is a joke if you live in a big city like l.a. and commute. if you decide to buy, think about how long you want to have the car. if you think you might want to get rid of it in a few years then ask how much resale value the car will have in a few years. hondas have the highest resale value, ford's are pretty low. then ask what kind of perks they can throw in if you're buying new!

What's your opinion on buying a fairly new car versus leasing a new car?

Q) I just rented a Pontiac G6 for a company meeting and I really liked it. My current vehicle is pretty undesirable, especially compared to a new vehicle. Is it reasonable to lease a vehicle for a few years and then reassess whether to lease again or try to buy a vehicle. How much can I expect to pay monthly for a new or fairly new (2005-2007) vehicle and how much can I expect to pay monthly to lease a 2005-2007 vehicle? Let's assume that the Pontiac G6 is my first choice and that it's priced around $20,000. Thanks!

A) Lease vs Purchase: these two methods are completely different... a lease is based off of a residual value (average depreciation), supplied by a third party publication. The resale value of the vehicle has a huge effect on wether or not leasing is a good idea.Let me explain, When you lease a vehicle, you are actually paying for the depreciation of that vehicle, the manufacturer is giving you a garaunteed value of the vehicle so long as the requirements of the lease are met (mileage, maint etc), the usage charge is based off of a money factor, (the cost of money for the manufacturer) this is in NO WAY related to an APR.Let me give you an example; the resale value of a honda civic over three years, given the vehicle has been properly serviced and maintained and the miles are not over the limit(avg of 12,000 per year), would be higher than that of a ford focus under the same circumstances. Thus the cost of using the civic over three years is less , so your payment is less. Manufacturers like leases because it brings you back into the dealership in 3-4 years. If you are seriously considering a lease, make sure you are aware that there are NO tax breaks on leasing a vehicle, in fact, some counties will charge you a propery tax on a lease at the end of each year......it should be on avg @ 2.5%-3% of the blue book value of the car. here are some basic numbers on a lease..... $20,000 = @ $329 / mo required down= 1st and last payment, ttl, and security deposit totaling $2558 due at signing. A purchase is much more simple and direct. Purchasing a newer model pre-owned vehicle with low miles is not a bad idea... because the vehicle has already taken its initial depreciation hit from the showroom floor......avg depretiation hit from initial purchase is approx 20% give or take. On your $20,000 vehicle, that would = $4000. So lets assume this: you buy a one year old vehicle with low miles, it has taken its initial depreciation of $4,000 and you are able to purchase it for $12,900.given that your credit rating is acceptable, you finance the vehicle for an avg term of 60 months..... you put the same amount down that was required at lease signing of $2558 , and there you go , your monthly payment on avge is $227, and you own the car at the end of your term..... I hope this helps more than it confuses you....

Leasing a car. Once I'm leasing a car, can i end it early and lease a new car without penalties?

Q) Im leasing an 06 Acura RSX, but wondered if i could end this lease and lease a different Acura from the same place, and just sort of start over. Im current with all payments, maintenance, and miles, and had wanted to know if this is possible without incurring serious penalties such as having to pay the 'residual balance'. It would be great if some people actually knew the answer, instead of the usual guesses. This is Yahoo! Answers, not Yahoo! Guesses. Thanks

A) I did that at Ford a few years ago & they were glad to make the exchange because they are in a sense "selling" a new car. It would also depend on how long you still have on your current lease. Give 'em a call.

What would be the advantages of leasing over conventional credit of a new car?

Q) I went to a car dealer and was explained both plans (leasing and conventional) The leasing plan offered a lower monthly payment. It looks like I can turn the can in at any time, so I don't have to go on with the payment and get me a new car. I want to know if there are other advantages, or disadvantages over a conventional plan.

A) In a typical auto lease, ownership of the car is held by the leasing company and not you. However, you usually have a buyout option towards the end of the lease for a fixed residual purchase price. This ownership point means that the leasing company bears the market value risk of the vehicle. That is, if the car's value depreciates faster than expected, you won't get stuck with a low-value vehicle and you don't have to buy it at the end of the lease. However, you may need special auto insurance that covers the difference between the market value and the lease's residual value of the vehicle in the event that the car is totaled. The leasing company also stipulates how many miles you can drive the car over the term of the lease. If you go over the allotted miles, you will be required to make an additional payment unless you buyout the vehicle. You will also need to insure that the vehicle is returned in good condition if you do not plan to buy the car at the end of the lease. From a cash flow perspective, a lease doesn't usually require an large up-front downpayment like an auto loan. In addition, leases can be for shorter periods than loans so they are typically favored by folks who like to get new vehicles every 2-3 years. Finally, the state sales tax on leased vehicles may differ than that of a purchased vehicle. Some states may charge you an up-front sales tax on the entire purchase value of the car similar to buying the car. Some states may just tax your lease payments.

Leasing new car: Honda EX with Navigation, or Nissan Maxima SL with navigation?

Q) Based on features, comfort, navigation, reliablility...

A) Mercury Milan AWD with Navigation