Car lease

4
Found 30th Mar
Hi, I'm looking for a car to lease as my car is on the way out, Don't really know what a good deal is. Just want something reliable and wouldn't be to expensive to run and maintain.

Looking for something no more than 250 a month and as little initial payment as possible.

Help is greatly appreciated.
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4 Comments
Try some research about types of buying and models. honestjohn.co.uk/che…ce/

I know plenty of people who have no choice but the take another new car (sounds hard doesn't it) at the end of the lease because they can't afford the unpredictable final payment and end up having it rolled up into the next lease. In 3 or 4 cars time, the house of cards collapses if you are not very astute going into the first deal.
Edited by: "ccnp" 30th Mar
Work out the mileage you need, as that's key to signing up to the right deal.
If your not needing to lease then check out PCP. Ford currently doing 0% and up to 5k scrappage for your old car (depending on what model you buy) and you can do it with no deposit and you get a new car. With PCP you pay the depreciation off over the term and can either buy the residual value at the end of the term (.i.e. 36 months) or hand the car back and get another PCP. It would be well within your budget if you want something like a Fiesta. I had a diesel fiesta and it did 160k (was still going strong) until I traded it in under scrappage to get a focus as needed a bigger car, paying £295 for a Focus titanium based on 18k or it would have been £305 for 25k a year, if you do less mileage it’s far cheaper.
Edited by: "cmdr_elito" 30th Mar
£250 per month would give you a budget of £6k over 2 years or £9k over 3 years. IMHO you're better off avoiding terms of over 3 years as you'll begin to incur additional costs (MOT, no warranty etc) and will lose the primary benefit of leasing, which is convenience and low maintenance motoring.

Your budget should still allow you to afford some pretty good cars, as long as you have a basic idea of what your requirements are, and you have realistic expectations.

As a rough rule of thumb, a good deal would be where the total cost of leasing is lower than the cost of depreciation on a car you would purchase outright. Or to be more specific if you find a car you like, look up the list price from the manufacturers website, then look around the various brokers such as Drive The Deal, Orangewheels etc to see what discounts are available. If you use sites such as Parkers or Autotrader this will give you an idea of what the car might be worth in 2 or 3 years time etc.

So take the best discounted price you find, then subtract from that the expected residual value at the end of your chosen lease term and that will give you a rough idea of the cost of the depreciation. Then add up all your lease payments, including broker fees etc and compare to the depreciation. If the lease cost is lower than the depreciation then it's a good deal.
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