Let's try something I've had saved for a while...if narrow-minded individuals insist on posting the same rubbish on all lease deals, then maybe I could try doing the same? It's split over two posts. Enjoy!

A Brief Guide to Personal Lease Deals
Leasing a car is a very hot topic on HUKD. There are a lot of lease deals that make it “hot” on HUKD, but there are a lot of negative connotations and/or misconceptions from both benefits and negatives of leasing. If you’re not ready for a long read let’s take an approach for tldr;

“These deals get hot for a reason, which is usually that the total payments over the term, are less than what the car will depreciate over the same time, if you bought it outright. If you don't understand this, don’t post silly comments – try instead to use that time to understand why the deal is considered hot.”

Part one is here:
http://www.hotukdeals.com/deals/corsa-vxr-2015-lease-149-a-month-149-deposit-24-months-3700-astonvauxhall-2232821?p=25426306

Here are some general pros to leasing:
• You get in to a new car
• Can be cheaper than buying new (depreciation concept)
• You benefit from not paying the initial registration fee/tax
• Vehicle excise duty is not your responsibility
• If the car is kept for under three years, there are no MOTs to worry about
• Leased cars spread costs out over the term of the lease. This is basic cash-flow. This is fundamental to business and life in general. Smooth cash flow, means a smooth life. No bottle-necks or lump sums.
• The lump sum up front is flexible in the deposit, but not the full amount of the car. It can be as low as one monthly payment or as high as 12 payments and upwards.
• New cars have a perception of being “more reliable” and will be covered under at least a three year manufacturer warranty.
• You have the perceived benefits of a new car: technology, safety, comfort, reliability.
• The agreement/contract is not secured (i.e. you won’t lose your house, like you could if you stopped paying the mortgage).
• Some deals include maintenance (servicing, tyres etc) as part of the package deal.
• Cosmetic damage is covered by BVRLA guidelines, which is fair and not unreasonable.

Here are some general cons to leasing:
• You will enter into a legally binding contract.
• If you cannot afford the monthly payments, you will be at risk of damaging your credit score.
• You need to have fully-comprehensive insurance or face a potential shortfall upon write-off.
• If your car is written off during the lease term, you may be at risk if the payments outstanding are greater than the pay-out from insurance; you’d need to purchase gap insurance to cover this shortfall.
• Many lease companies stipulate that the tyres you put on the car, are the same as the factory fit – these can often be very costly compared to your normal favourite quality tyre.
• Mercedes (and potentially others) may stipulate that you MUST use a Mercedes garage for servicing; you otherwise find that you must use genuine manufacturer parts/liquids as part of the annual/periodic service in order to meet the terms of the lease agreement.
• If your lease payments are very high, you might not get the efficiencies that many experience and you could be out of pocket compared to other methods of obtaining a vehicle to drive.
• If you don’t like the car, you’re tied into a contract and may find the release clause to be expensive.
• Some insurance companies don’t appropriately handle the registered owner being a lease firm, with the registered keeper being you, the driver (most are fine, however).
• Your mileage is limited to what is agreed at the start of the lease, though there may be a fee per excess mile (usually between 5p-10p per mile – be aware that many firms don’t quote this figure including VAT).
• If you really like the car, there is not likely to be an option to purchase it.
• There may be additional administration charges that are not immediately clear at first.
• You are required to be credit checked – if you have poor credit, you may not be approved for a lease.
• If you don’t look after the car, severe dents/scratches *may* be charged for.

Here are some general neutrals to leasing:
• You still need to insure the vehicle.
• The car will still need to be looked after as if it is your own.
• Your car will need to be serviced and maintained as if it was your own (log book stamps etc)
• In a >3 year lease, you will need to pay for MOTs
• In a >3 year lease or where manufacturer warranty expires during the lease, faults will need to be repaired by you

Okay, I sort of see where you’re going with this. Why not get a bank loan and buy outright or do a PCP deal?
A bank loan is a viable alternative to leasing, if you wish to own the car for longer than a lease agreement will allow. This works well for people who want to own over 5+ years and may not have the cash to hand right now, but know that future cash flow leaves them at risk.

With a bank loan, there is interest to pay. This can vary between banks and is also dependent on the base rate set by the Bank of England. Right now, some loans are quite attractive. In a year or two, they may not. It’s a risk you face, sadly.

Otherwise, you could also consider a PCP deal, which is similar to leasing, but gives people the option of buying the car at the end, as well as giving it back. Sometimes, it may also be possible to trade for another vehicle and maintain the same monthly payments. PCP often requires sizeable up-front cash sums (greater than a lease!) and will also have a finance charge involved on the finance taken out.

So why not just buy second hand and own outright?
This is the age-old argument to most of the vehicle lease deals that are posted here. Let’s start with the obvious.

• This is for a new car deal, not a used car deal
• You don’t go on to a deal for apples and say “cold, oranges are cheaper” (after all, both are still fruit – same thing – right?!)

But let’s entertain the concept for a minute, because some people may be undecided about new vs used.

Used cars can be a bargain, but at the same time, they can be a big risk. We’ve pretty much all had a used car and have a bunch of different anecdotal stories about good and bad examples of said cars.

Here are some general pros to buying used:
• You get more choice of used vehicles, with more varied specifications
• Mileage is only limited to what you have agreed with your insurance company (but is otherwise unlimited)
• You can sell the car on at any time
• You can make modifications to the car if you see fit to do so
• Cash sums involved are much less (in most cases)
• Depreciation will be smaller in actual terms, though similar in percentage terms to a new car
• The car you buy may run 100% for years and cost you very little before selling on for minimal loss (i.e. equivalent to a fraction of the cost of a lease deal)

Here are some general cons to buying used:
• Older cars will need to be put through an MOT
• As a car ages, the risk of repairs increases the more miles it has done and the older it gets
• If you have significant repair bills, you could end up paying more than a lease deal over the same period of ownership
• The car will still depreciate
• You may only be able to access cars with lower specification equipment and safety features for the money you have available
• The condition of the car (visually/mechanically) may not be easy to establish initially (you have come-back if it’s known about before selling to you however)
• A lump sum is still required (loan or otherwise) and tied up in the car; if the car is broken beyond repair, your money is lost.
• Selling used cars can be a drag, with tyre kickers and people being unrealistic with offers.

There is nothing wrong with buying an older used car. But it is important to remember that buying a car via a lease or outright as used is a financial risk in both instances – it is down to the individual to make this assessment or seek advice before making any commitment.

Golden rules for everyone:
• If you can't afford the payments (lease, loan or PCP), don't do it. This is obvious; this is a general rule of thumb for any financial commitment. Lease deals, like credit cards, are not evil tools of the modern world. They are tools to be made use of, if you know how best to utilise them to their maximum effect.
• If you don't want a NEW car, don't do it. There is no obligation. Nobody is forcing you.
• If you want to take the risks on buying a used car and the associated benefits of it being reliable and costing next to nil to maintain, before selling onwards, don't lease a car.
• If you don't understand leasing, don't do it.
• it is important to remember that buying a car via a lease or outright as used is a financial risk in both instances – it is down to the individual to make this assessment or seek advice before making any commitment

Platinum rules for everyone (take these at face value):
If it appreciates in value, you should seek to BUY IT.
If it depreciates, and it’s efficient to do so, you should seek to RENT IT.
n.b. there are occasional exceptions to the rule. Cars are not really one of those exceptions

If you're still unsure:
Think of a holiday. You spend £2000+. At the end of it, you don't get to keep the hotel to sell on. Nor the swimming pool, aircraft or airport. You have nothing to show for it except a tan (if you're lucky, unlike me). You have, however, had the benefit of enjoyment of that holiday for the time period that you were there.

A car is not dissimilar. You benefit from using the car before parting with it. Lease deals are great for people who want new cars and don't want to tie up vast sums of cold, hard cash up-front.

[b]If you STILL don't get

Comment

This is a ridiculous statement to make.

1. Lease deals are excellent for business
2. Lease deals are excellent for those who like to upgrade there car frequently
3. Lease deals are good for those who want an all in one package (servicing, tyres etc)
4. Lease deals are good for those who don't want to worry about depreciation

Think before you post.

I suggest this post being present on ALL lease deals that are voted hot on HUKD.

Ta again.

Are you only in it for the "likes" then? I bet the Ctrl, C and V keys on your keyboard are knackered.

Still spouting nonsensical drivel, because YOU can't grasp that other people CAN AFFORD to enter into lease deals.

You come across as a bitter, jealous individual, because of some sort of chip on your shoulder. None of us have any idea what it is, but you need to get over it. Accept that this is NOT a socialist society. Accept that other people (i.e. people who are not you), make different decisions.

Find me some articles that say "I lost everything I had because of a lease deal". Idiots will be idiots no matter what. A lease deal doesn't prevent said idiot from running up massive credit card bills, massive store card bills, not paying the utilities and not paying the mortgage.

Hop off your high horse, and get on with your day-to-day instead of forcing your negative view of everything, on the rest of the people interested in what is a genuinely decent deal, for those in a financial position to afford it.

A used car purchase is not a comparable deal to a new car lease.

...it....begins...

This is a superb deal - seriously - it's brilliant. Not my kind of car, but plenty of people out there are going to be pretty pleased with this one!

Fact is this is a deal that will suit some and not others ,,,

Just because others don't have the same thoughts as you doesn't make it a bad deal , and visa versa !!!

I'm sure I'll get A LOT of comments and A LOT of likes, like I did last time with the Jaguar deal (I haven't bothered reading the comments by the way), but here we go...

Lease deals like these promote reckless financial decision making. Appealing to people who can't really afford brand new cars but desperately want to look like they can. Enables people to live outside their means.

Also worth bearing in mind that whilst this deal, on the face of it, might appear to be better value, only a tiny fraction of all lease deals reach HUKD. Only the ones that are perceived to be good. The vast majority of lease deals out there are not good value, and the leasing industry targets the financially unintelligent and materialistic within modern society.

Like and comment away.

Comment

This is a ridiculous statement to make.

1. Lease deals are excellent for business
2. Lease deals are excellent for those who like to upgrade there car frequently
3. Lease deals are good for those who want an all in one package (servicing, tyres etc)
4. Lease deals are good for those who don't want to worry about depreciation

Think before you post.

So that's an up vote then?

Many deals on here could be said to promote reckless financial decision making - don't just single out a car lease. It's ultimately down to the individual to take responsibility for their own actions, and not live beyond their means.

You're right though, many lease prices aren't great, or close to good value, just like many new car purchase methods. At the end of the day, it's up to the buyer to make sure they are getting the best value for money.

By the way, you should bother to read comments. Everyone needs to be prepared to question their own opinions once in a while....

Are you only in it for the "likes" then? I bet the Ctrl, C and V keys on your keyboard are knackered.

Still spouting nonsensical drivel, because YOU can't grasp that other people CAN AFFORD to enter into lease deals.

You come across as a bitter, jealous individual, because of some sort of chip on your shoulder. None of us have any idea what it is, but you need to get over it. Accept that this is NOT a socialist society. Accept that other people (i.e. people who are not you), make different decisions.

Find me some articles that say "I lost everything I had because of a lease deal". Idiots will be idiots no matter what. A lease deal doesn't prevent said idiot from running up massive credit card bills, massive store card bills, not paying the utilities and not paying the mortgage.

Hop off your high horse, and get on with your day-to-day instead of forcing your negative view of everything, on the rest of the people interested in what is a genuinely decent deal, for those in a financial position to afford it.