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Motors Personal Contract Hire/Lease

Discussion in 'General' started by benji2412, 19 Mar 2013.

  1. benji2412

    benji2412 <insert message here>

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    Hello all,

    Thinking of getting a car via this for the next two years before buying new, my car is starting to get old and I'm sick of repair costs.

    My sister has used one like this and hasn't had any problems. I was wondering whether anyone has any horror stories to tell?

    I don't need to know how it works or how they make money from it, I already know.

    Thanks!
     
  2. mrbungle

    mrbungle Undercooked chicken giver

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    The thing to weigh up is this.

    You say you are sick of repair costs but would you be more annoyed by a fixed payment via direct debit every month for the new car?

    Lease cars also have service agreements you need to cough up for which adds to the cost.
     
  3. rollo

    rollo Well-Known Member

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    Lease agreements are great for companies as it allows them to replace there fleet of vehicals cheaply, Since most companies operate on a 100k miles or 2 years ownership model.

    Not so great for personal usage though simply because it will work out cheaper to buy a car than it would to lease it.
     
  4. julianmartin

    julianmartin resident cyborg.

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    Yeah....there's only one way to sum up what they are....and that's "convenient".

    You pay, but life should be easier for it.

    I considered it, but couldn't stomach paying all that money and having not much to show for it at the end of the agreement.

    Bit like renting vs. a mortgage I suppose.

    One thing I did find, it becomes better value the more expensive the car.
     
  5. benji2412

    benji2412 <insert message here>

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    Thanks for the replies and all folks, but I was really asking if anyone had any horror stories. As I said, I know how it works and how they make money, it doesn't bother me.
     
  6. julianmartin

    julianmartin resident cyborg.

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    I haven't heard any but then never ended up trying it. My brother does it (but he lives in france) and is bloody happy with how it's worked out. He's dealing directly with Skoda for his.
     
  7. benji2412

    benji2412 <insert message here>

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    Aye, currently it's a good option for me, but when it ends I'd like to think I'd have enough saved up to purchase one outright for cash. The interest on 2 years finance is better than however long a purchase on finance is.
     
  8. Krikkit

    Krikkit All glory to the hypnotoad! Super Moderator

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    Horror stories? Like all contracts bought from reputable people there aren't any as long as you go in with your eyes open and read everything carefully before you start.

    Personally I hate the idea of paying someone else's depreciation for a couple of years to be left with nothing at the end of the day. Take your equivalent of monthly lease payments and stick them in a savings account - I bet you get to the end of 12 months with a sizeable chunk left over even after repairing an unreliable car.
     
  9. benji2412

    benji2412 <insert message here>

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    Such as a contract from BT? :p

    I don't like that either, but you do have the option to purchase it at the end of the lease at the market value with the mileage that should be on the clock. That's why I'm not bothered, as I mentioned, I've done my homework :thumb:
     
  10. Krikkit

    Krikkit All glory to the hypnotoad! Super Moderator

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    ?

    Sounds like you're all set then - repairing your old car is a poor justification for buying a new one though. :p
     
  11. Da_Rude_Baboon

    Da_Rude_Baboon What the?

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    No horror stories but one of wifes colleagues has been moved over seas by the company and he is one year into a three year lease. It's going to cost him £8K to get out of the contract. As Kirkkit says go into it with your eyes open and make sure you set the mileage level to a realistic amount.

    We purchased a care using PCP before and it worked out ok for us.
     

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