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Car Leasing

Posted by danot - Created: 3 years ago
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5 replies (Showing replies: 1 to 5)

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Posted by Dibbyspot - 3 years ago

You never own the car  so just have monthly payments for asset use. If the cost of asset  use and the fact it is new are important - then go for it. Companies get a tax offset for these cost so the lease becomes tax efficient. You cannot do that as a private individual.

For consumers the cost per month on a lease is lost, if you buy the vehicle you keep any residual value after 4yrs. In the case of the lease you have lost all the money you have spent.

In general the car dealer will set up these lease deals.

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Posted by Lofty-385373 - 3 years ago

Yes there are mileage restrictions but they are negotiable, in our case we opted for 25k a year. Originally we thought to go for 20k but the difference in the cost was only 2 euros a month more, so seemed sensible to go for higher amount especially as there are penalties for exceeding the limit.

I forgot to sat that we are doing the deal with our Citroen  Main dealer who told us that over 40% of new car sales in France now are lease sales!

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Posted by a3 - 3 years ago

You agree your mileage for the period of the lease at the outset and this is reflected in the lease price. If you go over the agreed mileage you pay a per km penalty but you can normally renegotiate if a substantial difference is likely to arise. What car has full details on all the types of leasing arrangements. Whether it is right for you depends on your personal circumstances and requirements v keeping a car longterm or regular replacement etc. They are now an extremly popular way to fund motoring costs and will enable the manufacturers to have some certainties re the size of the future market and control the secondhand price.

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Posted by wild at 60 - 3 years ago

Hi Lofty does that system mean you are restricted on mileage and if so what would that be in the case of the C4 picasso, I may be required to do something similar next year

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Posted by Lofty-385373 - 3 years ago

Want to replace 6 year old car but the part ex price is derisory. So in the future when i come to change again, I will face the same problem. Also I have discovered that to buy a new car after the deposit (part ex price) and the discount (Citroen offering 5,500 off new C4 Picasso) I will have to find 25K which over 4 years will cost me over 500 euros a month. But if I lease the same car for 3 years I will pay less than 500 euros a month, all maintenance costs are included, and should the worst happen and it gets written off I get a brand new car to replace it.

So doing the math it works for me to lease, OK I wont own the car but in 3 years when the contract is up I can choose to purchase it for a sum or get another brand new one and not have to worry about depreciation.