I am in the final interview stages for a new job, which I believe comes with a car allowance in lieu of a company car.
I currently have a 1997 VW Passat TDi 110 with 181,000 miles on the clock. To be honest, it's a reliable workhouse that hasn't ever let me down. But, I'm the kind of person who doesn't normally keep his car for more than three years - hence why I'm thinking of changing.
I don't want to use the car allowance to purchase a car on HP or Options, just in case I find myself without a job. Hence my thoughts turn to personal leasing.
I've spent a fair amount of time on the RAC leasing website and have found I can lease a brand new C5 1.6HDi 16v VTR coupe for £250 a month (3yrs/25,000 pa/non-maint/GAP & Early Termination Insurance Inc).
I don't think that's too unreasonable, especially as I don't have to deal with depreciation. Okay, servicing over the 75,000 miles will be down to me but I don't see that as a problem (especially as the maintenance option added £65 a month to the lease cost!)
Does anyone have any opinions on going down the lease route, and if a heavily discounted Citroen is the way forward to bring the lease cost down?
Cheers,
DB
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Hmm - it doesn't come out that cheap when I do it. Are you including a chunky deposit?
On the scheme as a whole - as an opted out ex-company car driver, I think it's a good idea. There have been several stories on here of people who've lost their jobs after a few mths and been stuffed with an expensive car.
You could still buy on HP/PCP and get loss of job etc insurance.
Be careful of the level of cover and restrictions on the early termination - near the beginning of the agreement the cover may not be enough, especially on a rapidly depreciating car like a Citroen.
Also the maintenance cost, while perhaps a little on the high side, won't be a million miles away from what it's actually going to cost you. Don't forget that it includes tyres, and you'll probably get through a set a year (depending on how you drive, of course).
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Yes, sorry - a grand down....
Re the maintenance - it works out at £750 in extra lease - I reckon a warrantied car won't get through that much in cost! I wouldn't hope so anyway!
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Probably not, although the warranty is perhaps only for 60K?
I guess a set of tyres could be £300, and it maybe needs a cambelt at 60K, so it could all add up. It ought not to cost that much, but the benefit is knowing the cost up front, and not having to stess about the dealer charging you for screenwash!
Not saying you *should* do it - I hummed and harred for my daughters SEAT, and that was £20/mth, but she wanted to do it.
I noticed the maintenance cost was lower on, say, the VW Golf, so it might be worth doing maint inclusive comparisons (unless your heart is totally set on the C5, of course).
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Gaa! I meant the C4...
I'm after a low cost lease at the end of the day - I don't really mind what the car is as long as I can do 25k a year for minimal cash!
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There are currently some good deals floating round the lease industry on things like the last of the MK4 Golf TDi Estates and the Golf Plus.
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Presumably you mean a C4 coupé, not a C5?
Admittedly it's not a conditional sale like HP or a PCP, but you still end up with liability for ending the lease early with early termination penalties, or possibly restrictive terms and conditions on the early termination insurance. Without the insurance, you could actually be put in a worse position than with HP or PCP as there is no rule that says that you can hand back once you have paid 50% of the total credit price.
A new C4 VTR HDi can be had for £11k. Allowing £1,500 for the old car, that is £9,500 to finance. Over three years that works out at £288 per month. At the end of the period, you've got equity of around £4,750 in the car if you sell privately. That is roughly £198 per month net cost of purchasing that car, including interest. Also, if you were to lose your job, etc., you could sell the car which with a £1,500 deposit should always have enough value left in it to clear the loan regardless, which is all the insurance is really providing you with.
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