Forums > General > Private Lease vs Contract hire vs whatevs?

PRIVATE LEASE VS CONTRACT HIRE VS WHATEVS?
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Firstly, is there a difference between Private Lease of a vehicle, and Contract Hire?
I don't think I can get a car under the company car rules unless the umbrella company offer them - and I can't get into the part of their website which would tell me this yet.

When you see the lease etc quoted as 6+35, the "6" is just a deposit, right? You do get that back?

I appreciate these are stupid questions, but I haven't done this before.

I'm looking at this because there seem to be some stupidly good deals out there. Eg Kia Sportage for £160 pcm.

Talk to me. Pros, cons, etc. Alternative is getting a relatively cheap snotter as I suspect my car is worth pennies, and I don't want a big outlay.

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Knackered old hairdresser's sh1tter

Si_ said...

When you see the lease etc quoted as 6+35, the "6" is just a deposit, right? You do get that back?

Nope, they keep the 6. Which is why 6+35 monthly payments is much cheaper than 3+35.

It's all about cashflow I guess, but I've only ever gone for 3+XX

And yes, Sportages are fantastic value.

Si_ said...

When you see the lease etc quoted as 6+35, the "6" is just a deposit, right? You do get that back?

Nope...

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and from the beginning think what may be the end.

So how can they call that a deposit? It's a front-loaded balloon payment!

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Knackered old hairdresser's sh1tter

We just took delivery of a Leon. 3+35 inc vat, sevicing, tyres, 15k miles per year = £225 per month.

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My Flickr

Invisible Speakers

I have been thinking about the exact same thing recently.
Had problems in the past with cars and can do without the hassle of buying second hand but cannot afford to buy new outright. A personal lease with just tax to pay sounds like a good idea and just hand it back at the end.
Anyone had any problems with this setup before?

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Procrastination Man will be with you in a minute...

CCC4U said...

A personal lease with just tax to pay

Often they throw the tax in too.

Si_ said...

So how can they call that a deposit? It's a front-loaded balloon payment!

You don't get the deposit back on a PCP you know :lol:

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JL said...

Oh b*llocks you're right

Maybe I don't understand deposits correctly. To my mind that is a downpayment.
I guess it's a non-refundable deposit.

Either way, hmm. Thought it looked too good to be true.

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Knackered old hairdresser's sh1tter

You don't get the deposit you put down on your house or on a car bought on normal finance either :lol:

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Jobbo said...

Rev is correct, of course

Si_ said...

Thought it looked too good to be true.

Just add it all up and it isn't too good to be true, it's just what it costs. Still a good deal, just avoid the naughty deals on 6+ because that allows the broker to quote a lower monthly fee when in reality it's not a fair comparison.

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JL said...

Oh b*llocks you're right

NotoriousREV said...

You don't get the deposit you put down on your house or on a car bought on normal finance either :lol:

Look at it like renting a house. I'd expect to get my deposit back.

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Knackered old hairdresser's sh1tter

If the total payable is cheaper using payments of 3/6 up front then use whichever costs you te least ;)

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A yellow loltus

Deposit? lol - wally.

Jobbo said...

Si_ said...

Thought it looked too good to be true.

Just add it all up and it isn't too good to be true, it's just what it costs. Still a good deal, just avoid the naughty deals on 6+ because that allows the broker to quote a lower monthly fee when in reality it's not a fair comparison.

Best way to compare deals is to use 3+ 35, 10k miles, inc VAT.
Also check what the excess mileage fee is. Some deals are as high as 12p + VAT per mile. Ours is 7.92p inc VAT.

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My Flickr

Invisible Speakers

mattcambs said...

We just took delivery of a Leon. 3+35 inc vat, sevicing, tyres, 15k miles per year = £225 per month.

What's the spec on that please Matt?

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BMW Car Magazine @QuentlyBentin

spec

Speak to Ed at Wessex. He is very helpful. Tell him I sent you ;) :lol:

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My Flickr

Invisible Speakers

mattcambs said...

spec

Speak to Ed at Wessex. He is very helpful. Tell him I sent you ;) :lol:

Good deal on a yeti on there to :shock:

Nearly 11k after 3 years and nothing to show at end doesn't sound that great to me.

Would be better off buying a 2 year old one for 10~ and either getting a loan or steam into the savings?


Diesel Taxi said...

Nearly 11k after 3 years and nothing to show at end doesn't sound that great to me.

Would be better off buying a 2 year old one for 10~ and either getting a loan or steam into the savings?

If you have a pretentious wife who wanted a new family wagon, that less than 11k for a new maintained kid carrier looks OK.

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