Practical Experience on Lease Cars

[Captain Jack]

Thanks for the great comments, Doddy. I see then that a (say) two year lease actually consists (in total) of the monthly fee x 26, three payments in month 1 then 23 further payments, one a month.

So it's also your experience that as long as the car hasn't obviously been in a crash or is otherwise completely fooked, it's okay with the lease company? I've gradually come to the same conclusion as you, that buying a new car vs leasing is a no-brainer. Get someone else to worry about the depreciation, big service bills, MOT, road tax, roadside support, etc., etc. I was just worried there might be hidden sting in the tail at the end of the contract (just like Avis, Hertz etc are always keen to try it on).

[Darren@UptonAccountants]

Cars

These are the guys we've used in the past, arranged a few cars through them not just on leasing....they seem to be able to sort most sorts of finance and source decent deals on cars. Have also use them for van leasing for a company carpet business we have in the North East.

www.yourfleet.co.uk

[Doddy.]

decent companies

Yes - I am on my third car now and it has all been OK so far and touch wood.

The maintenance costs may not be worth taking out as an option - new diesels, for example, only need a service every 20k miles or so. Breakdown is included only sometimes - you need to check to do the like for like quote. Road tax is always included. I must have dealt with about 10 companies to arrange my latest car, and the prices vary greatly. If you shop around you will come across 'special offers' with one agent that you won't find anywhere else. Tip - identify two or three vehicles that you fancy, and then get quotes. BMW, Audi and VW for example are all good value. Ford and Vauxhall are not for the reasons outlined before. Having said this, it became apparent during my searching that Ford are trying to shift the Focus ST nutter bas*ard and the prices for these are lowert than a standard focus. You will get a bargain if you want a car that the maufacturer are trying to move. Example: Audi A6 is a bigger and better car than the A4, but it is cheaper onthe whole - must be being supported by Audi themselves. It is suprising how much of an expert you can become during the client's time and on their internet connection.

Anythinge else - give me a shout

[AtW]

You twat!....I wouldn't buy a car someone else had leased/owned. I was on about owning/leasing from new.................

Yes I understand you lease it, what I am saying is that since its known that drivers of leased cars totally screw them up it means that its okay by lease companies - they know it very well, so its not a factor: of course any visible damage is a no-no!

[Lockhouse]

My over mileage costs are something like £0.04 per mile which is not too bad. If it looks like you are going to go over the agreed mileage you can always renegotiate for the following year - it's only in the last year that you have to be a little careful.

[Mustang]

Great thread. For those of you that do leasse, do you have private leases or do you handle it through your companies. If so, how do you handle the tax issues.....?!

[Captain Jack]

Doddy, you are absolutely right about not paying the (often considerable) extra for maintenance included leases. I understand this is a big profit area for the leasing companies and reached the same conclusion. As you are leasing a brand new car what is the likelihood that it will need new pads, a new battery, etc? Virtually none unless you drive like a complete kn0bhead. All it should need is (at most) two basic services with just a change of filter and one or two other bits and bobs. Better to pay for these yourself methinks. If anything serious goes wrong in the first year you are covered by the manufacturer's warranty in any case.

[The Master]

Great thread. For those of you that do leasse, do you have private leases or do you handle it through your companies. If so, how do you handle the tax issues.....?!

If you're a typical contractor, it's generally best to lease privately and charge YourCo a mileage allowance. If YourCo does the leasing and lets you use the car, the personal tax hit will more than nullify the other advantages of YourCo handling the financing.

[threaded]

If you go for a specialist / high end car it is best to have maintenance included as such cars can be quite temperamental and if you happen to get a lemon the bills can tot up quite rapidly, whereas if they're on a maintenance contract the garage tends to have a little bit of an incentive to sort them out. Make sure the maintenance contract does actually cover everything...

It is also important to ensure the maintenance contract specifies "equivalent loan car". Can be really annoying to lease a 750 iL and find yourself driving a 316 nasty for half of each year, as it's back in the shop and takes them so long to get it working right.

Also important is the size of the "get out fee". If you get a lemon you don't want to be saddled with it for 3 years.

Also the "preferred buyer clause". If you happen to find the car is a good 'un and you want to buy it, make sure well in advance. 'Cause if it is a good 'un the lease company / garage will have it for themselves, and they'll try every scummy trick going to try it on.

Finally, as with any negotiations with car dealers, find out where they live, where their children go to school, what pets they have, and let them know you know.

HTH

[Lockhouse]

I've got a van (and it's white) that I lease through my company. Vans don't have a BIK charge if you only use them for business. It's a full service lease, so the only thing myco pays extra for is insurance. I use it for other stuff ancillary to my main contracting biz.