Car Leasing

[techie_tubby]

After having being turned down for finance for a car I had a look into my credit rating and the usual problem has cropped up with me living in the block my credit history isn't great. I was given this website here and I am wondering if anyone has had any contact with leasing cars instead of buying them? Just after general information really. I've had a look through all the small print but any stories or advice from the shop floor would be good.

 

[AbuNajiWaterRat]

Buy a banger for £500 with some tax and test on it, service it, get only third party insurance and get AA cover, Hey presto you own your own car.
You can even get £100 back from a scrapper when it gives out.
Put what you would be spending every month on a lease car under your mattress & in 6 months you’d have over a grand to upgrade to a better motor, keep saving & in 6 months...

 

[fat lazy techie]

Currently doing the lease thing and it seems to be working out alright. Brand new car and all I'm really only paying is the depreciation. So I don't own it, do I really care? The tax disc arrives through the post on a yearly basis, I just have to make sure I keep up with the servicing schedule. What you pay obviously depends on what you get and how long you want it for.

 

[Max Reheat]

To improve your credit rating spend a small amount on a credit card monthly and pay it off in full each month

 

[enginesuck]

How does this leasing business work then? Looks interesting. I get that you don't keep the car or own it but is it a case of you pay the £250 pound a month or whatever for say two years then you can walk away ?And surely you'd need a decent credit rating to get one ( see OP)

 

[mick-a-nick]

Engine - Something like that with a few more costly caveats, damage excess, British Vehicle Renting and Leasing Authority Standards, insurance charges etc.
Never done it myself but have handled a few in the cases of claims / accidents etc.

 

[The Stig]

Not done this leasing lark myself yet, but my brother has and swears by it. Paid the monthly fee for a brand new car and only had to pay out for wear and tear items (tyres etc). Servicing included along with the tax!
Paid 3 x monthly payments to start and then about £300 a month for a brand new Lexus IS diesel on a 3 year contract. Considering most people are effectively renting new cars on HP PCP deals, it's not a bad way to go. But as always its your choice DT_Xtremez_35:

 

[MrMasher]

the usual problem has cropped up with me living in the block my credit history isn't great. .

It doesn't work that way any more. The credit rating is yours, not your address.

Don't waste your money on a lease car, instead pay off any debt you have
Spend on a credit card and then pay it back each month. This will show that you can be loaned to because you pay back your debt on time and responsibly.

Before you know it you'll have a good credit rating.

 

[grumpyoldb]

Remember that if you take out a three year lease, and then try to get out of it, (E.G. You may get posted overseas etc.) you have to pay the three years payments in full.

 

[3OCLOCKFINISH]

If you want a nice car then it is a fact of life that you have to pay for it and with buying a new, or nearly new car it another fact of life that it will depreciate.

By leasing a car you are effectively paying the depreciation and nothing else which can actually work out in your favour.

Take a BMW vs a Kia, after three years the BMW is likely to have lost less as a % as the Kia so the leasing companies can offer you a better deal on the more expensive car.

If you know you will keep the car for the full term then go for it, if you are the kind to chop & change after 18 months then it may not be for you.

And one last thing, make sure it's a car that you really enjoy as being lumped with a car on (any kind of) finance that you don't like is not nice!