I've always struggled to get my head around the idea of leasing - the concept of paying a chunk of money then handing the car back (unless of course you meet the balloon payment) never seemed to compute. Until I started to think of it in terms of just financing the depreciations - get the guaranteed minimum final value right and I can see that it makes sense.

But I'm pretty clueless as to how you do the deal in practice. For cars with a track record, I guess CAP (or someone similar) has data on retained value after 3 years and so that's the basis for working out the GMFV. What about if it's a newer car with no track record yet? Is the GMFV based on a best guess? If so, whose? CAP's?

Just wondering how much flexibility it gives to go in a haggle over a deal if you're planning to buy on a lease/personal contract hire basis. I guess the same scope is there to haggle over the purchase price, then once that's agreed that forms the base for working out the deposit and monthly payment.

I also guess that there's very little scope to haggle over the GMFV - they just give you a figure and you have to take it or leave it?

Up until now, I've always kept things simple and just paid in cash. Guidance from anyone who has haggled deals based on a PCP/lease basis welcome before I venture into a showroom!

Ta.

 

I thought one just used t'internet to find out the bast deal - like here for starters;


Lee Sing

 

I remember seeing her on Dragons Den!

As I said, Nick, I have no experience of this at all. I hadn't looked past walking into the dealer and seeing what they offer. In my ignorance, it hadn't even occurred to me to look at third party leasing. I shall go and give Google a work-out.

Still interested to hear personal experiences of haggling with dealers on leasing packages

 

Lease purchase is the other side; just HP with a balloon, basically.

So just like HP, you can go onto the interweb for the best purchase deal, then shop around for the best finance. Using the inter...

I hardly need tell you that used values are gonna plummet, so choose a sensible balloon if you do go that way.

 

If you want/ need a brand new car every 2 or 3 years it is the way to go.

 

...unless you do a very low mileage or return the car in less than ideal condition - beware of those 'catches'.

 

Mileage may well be an issue - it's for 'Er Indoors and she's a less than enthusiastic driver. I can't see her ever driving for the fun of it, so it's going to be less-than-average mileage - 6,000 p.a at absolute most.

 

You can get deals based on lower mileage
The thing to watch is going above at the excess mileage rate gets stupid.
Essentially you are spreading the costs of depreciation, service, road tax etc over your slectred period. So pick some thing that doesn't depreciate so much.
This is why so many co car drives manage to get in to 320d's when they should be in a focus
If it's for private use haggle as if you are buying cash then thrown in PCP or PCH and see how that stacks up.
I reckon you might get a good PCH on a Mini
My next door neighbour gets all their cars on PCH

 

We started off looking at second-hand Minis, but based on just buying for cash.

But personally I think they're ten-a-penny so I started thinking a bit laterally. I think I'd prefer an Alfa MiTo on the basis that it's aimed at the same sort of market but is a bit different. I've always had a soft spot for Alfas but have never been brave enough in the past to actually consider buying one! Since they're newer, there's no scope to buy used and make any meaningful saving so I looked at leasing instead.

Anecdotally, residuals seem pretty strong and are forecast to remain buoyant (by third parties, not just Alfa dealers ). Shock horror - Alfa in potential decent residual value shocker I remain to be convinced but it's at least worth thinking about.

Mini residuals are strong - a touch less than 50% after 3 years, so maybe I'll have to do a compare and contrast before SWMBO makes her mind up.

 

My Punto is leased. Worked out cheaper than the depreciation over the term. Plus it isn't a car I'm bothered about owning. Mind you I arranged it in December when cars were being given away.