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What's the advantage of contract/lease? - movilogo
Call me stupid, but actually I can't see any advantage for contract hire (eg. lingscars.com)

You pay the monthly premium in a same way you would have paid if you bought it yourself.
You pay for maintenance for the car.
You are responsible for any damage on the car.
You have to get your own insurance!
You pay extra for excess mileage!
You never own the car!
You can't cancel the lease in midway (probably need to pay hefty fine if you do so)

How it differs form buying a new car with a loan and pay monthly?
After 3 years you can always sell the car to get rid of it!

Or there is some real advantage?

PS: The only advantage I see that after 3 years, if your car depreciates too much, you may lose more money if selling the car privately rather than returning to lease company.
What's the advantage of contract/lease? - Nsar
Convenience of simply handing it back and getting a new one rather than going through the process of private sale. Whether that makes it a more attractive way to get some wheels is something only you can decide - each to their own I guess.

What's the advantage of contract/lease? - Pica
When I handed my last one back after 3 years, it was immaculate (being a bit of a geek) but the leasing company spent a good 30 minutes looking for and checking every chip, scratch etc. They gave me a detailed report for me to check, confirm and sign and luckily there was nothing I was being charged for but I was relieved to be free of the contract.

You are simply financing the depreciation of the vehicle of the period you hire it plus any damage
What's the advantage of contract/lease? - Steven Perez
Your not stupid.

I've done it both ways, purchase and lease. You have to ask yourself what type of person you are?

1. You like to buy a reasonable car and run it till the wheels fall off - Buying is the only way to go.

2. You like to change your car every two to three years - Leasing is the way to go. - It is cheaper and more convienent no doubt.

So to answer your points ---

"You pay the monthly premium in a same way you would have paid if you bought it yourself."

So no difference there.

"You pay for maintenance for the car."

Again no difference, though with a lease its a new car under warranty so any issues are covered.

"You are responsible for any damage on the car."

:)

"You have to get your own insurance!"

You can rent if that is what you want?

"You pay extra for excess mileage!"

You will pay considerably more for extra milage on a car that you own, with a lease the extra cost is fixed.

"You never own the car!"

Yay, this is actually the best part, because when the lease ends its not your problem anymore.

"You can't cancel the lease in midway (probably need to pay hefty fine if you do so)"

Yes, you do need to be disciplined about the timing and changes of vehicle, but at least you don't have to trawl around dealers getting the bad news that the wonderfull BMW/Mercedes you bought three years ago has depreciated like a stone and is worth nothing like you thought it would be.


I've had some nice cars on lease for very reasonable rates, at the end of the day cars lose value at an alarming rate, with a lease you know exactly what the financial damage is. And I would add that it has been considerably cheaper than owning a car and selling it.

Cheers
Steve

BTW: I am a real person
What's the advantage of contract/lease? - davecooper
I have had many cars financed in many ways. However, my current car is on a PCP and so will my next. Reasons: Now I am older, I want a new car every two or three years, I don't want to have to bother with MOT's, or even new tyres. I don't want the hassle of selling it and I am not bothered about owning the a car. My priority is low monthly payments and this is the best way to achieve this. I've done my time and now just want easy motoring.
When I take it back next year, any hassle at all and I will be walking out of the door and not going back.
What's the advantage of contract/lease? - Roly93

It is evident that I like you see little or no advantage to leasing, other than if you own your own business, you dount have a depreciating asset on the books.

Other than that there is the livelyhood of the lease company you are using being worse if you dont !

My strategy is to source a car with good durabiloity and low depreciatiuon for best possible price, look after said car as well as possible, replace after 4 years and sell old car privately for good price.

What's the advantage of contract/lease? - Falkirk Bairn

Leasing normally means lower monthly payments than HP as you are paying depreciation (estimated) and interest on whole amount. With HP you pay Capital and interest on the whole purchase price less deposit.

Leasing can be sunstantially cheaper if the Leasing Company has a special offer on a make or model - Big order they may get 40% off rather than your 10/12.5% for one car. Hence the depreciation will be less and the interest+profit on the smaller Capital cost can mean a good deal for the punter.

However, break the contract early, do higher miles than forecast and return a car in other than very good condition then the penalty charges soon mount up.

My plan is buy a new or very nearly new reliable Make (Japanese) car cash, at a good price and look after it - last car for work I owned my employers bought it 2 x over in the 93,000 miles by Monthly Car allowance and 25p/ml for all miles + tax rebate on 1st 10,000 miles - driven carefully 38mpg was possible whne petrol was 80p / litre and not the £1.14 of today.

What's the advantage of contract/lease? - Roly93

However, break the contract early, do higher miles than forecast and return a car in other than very good condition then the penalty charges soon mount up.

In my 20 or so years experience of working in a company car environment, I think this statement is so right. The cash I have seen haemorrhaged by stubborn fleet managers due to over mileage or employees not hauled over the coals for abusing cars must be staggering.

Okay, everyone can accept that a 3 year old car with say 70K miles will have the odd scrape in a couple of places, but some of the quality cars I have seen handed back with appauling damage due to carelessness is amazing. Also, many times, I have seen fleet managers refuse to let someone order a new car after their 3 yr 60K mile car had racked up 60K after 22 months. This is very quick way to lose £1000's.

What's the advantage of contract/lease? - StevoBee

I've just had my third car delivered through lingscars.com. I'm self employed and do about 20,000 miles a year, and like having a new car every so often, but don't like the idea of having a depreciating asset sitting on my drive haemorrhaging my money.

My current deal is for a car worth £28,700 list, which costs me under £400 a month for 3 years. A loan would probably mean repayments of double that per month, tying up my money for 3 years then hoping to get a trade in or private sale of £10-12 grand.

This keeps everything simple for me, it won't suit you if you like driving old cars or won't be such a good deal if you're not VAT registered though.