How popular is car leasing?

Watch this thread
vincenthill
Badges: 0
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#1
Report Thread starter 8 years ago
#1
Hey friends,
Please tell me how popular is car leasing as I am confused about leasing the car or buying a new one?
0
reply
IntriguedUser
Badges: 12
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#2
Report 8 years ago
#2
It's TOO popular, people going broke out cheaaa
1
reply
Alfissti
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#3
Report 8 years ago
#3
Less popular among private retail buyers, more popular among corporate fleet buyers.
0
reply
vincenthill
Badges: 0
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#4
Report Thread starter 8 years ago
#4
Can you tell me which is the most reliable car that I can lease? I have heard that for maximum 3 year we can lease the car. Is it true? The contract continues or we have to follow some different procedure after 3 years for these?
0
reply
MD2014
Badges: 4
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#5
Report 8 years ago
#5
You are normally given the option to buy at the end of the lease or trade in for another car and begin another lease term.

The only problem with a lease is the mileage. If you go beyond a certain amount in a year that is stated in the lease terms (12000 for example) you will be charged per mile beyond that. Which can start to get pretty expensive, pretty quick if you are using the car often.
0
reply
Alfissti
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#6
Report 8 years ago
#6
(Original post by vincenthill)
Can you tell me which is the most reliable car that I can lease? I have heard that for maximum 3 year we can lease the car. Is it true? The contract continues or we have to follow some different procedure after 3 years for these?
http://www.which.co.uk/cars/choosing.../buy-or-lease/

This is a good article to read and consider when thinking of leasing a car especially if you are a private buyer, it is a different story if you are a business user where the lease payments does make a difference for tax purposes.

Generally the best and most reliable cars in the market tend to have very strong residual values therefore it is usually cheaper to buy such cars rather than to lease it,
0
reply
vincenthill
Badges: 0
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#7
Report Thread starter 8 years ago
#7
Thank you so much for providing me the link to read the article but is it worth to lease the car rather than buying? Because first of all we get the long term warranty, secondly there is no kinda of tension to pay for repairing and maintenance of the car. Also I can enjoy new car every 3 years. I am not telling that I don't want to but the car but these are just my views which I am sharing with you all guys. You can make me clear if I am wrong over here.
Also what about sales tax? Does I need to pay sales tax only on the portion of the car I finance?
0
reply
Alfissti
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#8
Report 8 years ago
#8
(Original post by vincenthill)
Thank you so much for providing me the link to read the article but is it worth to lease the car rather than buying?
Unless you are buying it for use as part of a business then it usually isn't worthwhile leasing.

(Original post by vincenthill)
Because first of all we get the long term warranty,
The warranty terms are the same regardless whether you buy the car or lease it. Even if you buy the car there isn't anything that prevents you from selling it after the warranty is over. I generally tend to do this, I don't keep a car once the warranty is over and I seldom lease a car, in fact the only thing am planning on leasing now are 4 pickup trucks for usage in my business.


(Original post by vincenthill)
secondly there is no kinda of tension to pay for repairing and maintenance of the car.
You will need to maintain the car even if you lease it, some lease programs are quite strict as to where you can service these cars and usually you would need to pay more to have it covered under a maintenance plan, in any case maintenance for most new cars is fairly cheap and a non-issue.

(Original post by vincenthill)
Also I can enjoy new car every 3 years. I am not telling that I don't want to but the car but these are just my views which I am sharing with you all guys.
I generally don't keep a car beyond 2 years, prefer to sell it off while it is still under the manufacturer's warranty. If you keep the car for 3 years at the end of it you generally get nothing when you return the car, sometimes the lease company may give you a small discount towards your next lease by waiving the initial payment towards your next car, this may not necessarily be possible if you lease through a manufacturer unless the next car is also of same make. If you own the car, after 3 years chances are you will get some money back even after you settle the outstanding finance on the car. If you have driven the car around the world and back 10x then it is just sold subject to condition, if it is a lease the amount you pay for extra mileage can be punitively high.

(Original post by vincenthill)
Also what about sales tax? Does I need to pay sales tax only on the portion of the car I finance?
In UK unless the lease is done by a business or a company then your monthly lease payments are subject to VAT. Same in most EU countries. The same goes for your initial payment as well which will be subject to VAT.
0
reply
vincenthill
Badges: 0
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#9
Report Thread starter 8 years ago
#9
Wow Alfisti,

You have provided me great information on car leasing. I would definitely take your points and information into consideration.
Thank you.
Cheers.
0
reply
tehFrance
Badges: 17
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#10
Report 8 years ago
#10
(Original post by vincenthill)
Hey friends,
Please tell me how popular is car leasing as I am confused about leasing the car or buying a new one?
Leasing is good but hire-purchase is better as you own the car at the end and you should (sometimes) get the option to sell it back and get a new car from the dealer, my main care is done with 'Agility' which is like leasing and hire-purchase molded into one I guess, I fully intend to part-exchange the car when my contract's ended
0
reply
JC.
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#11
Report 8 years ago
#11
If a car is less than 3 years old, there's a 95% chance that it's finances somehow.
Cash buyers of new cars are incredibly rare.

If a car is 5 years old, there's again a reasonably strong chance it's on finance.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

How did your AQA A-level Psychology Paper 1 go?

Loved the paper - Feeling positive (117)
38.24%
The paper was reasonable (146)
47.71%
Not feeling great about that exam... (29)
9.48%
It was TERRIBLE (14)
4.58%

Watched Threads

View All