Ownership v leasing

[Clive 1939]

Has anyone on here had any experience of leasing a Skoda rather than outright ownership? My Mk 1 Octavia is now 8 years' old, and I'm thinking of upgrading to a Superb Elegance estate diesel. Looking at some of the leasing sites, it seems a practical proposition,but I should welcome any opinions/experience others may have had, before I commit!

[ruffday]

No experience myself and my company car is bought rather than leased because of the mileage I do.

I would say compare the costs and look into any penaltys for going over the specified mileage.

[LeeHarrison]

With regards to leasing (as mentioned in the Octavia forum), are you VAT registered. If you are looking top lease a car, is it going to be put through the company or a private purchase?

If the car is to be leased through a VAT registered company you WILL benefit. The monthly costs on a lease plan are plus VAT, is you or the company can claim back the VAT then it is beneficial. If neither you nor the company are VAT registered, you will be paying VAT that 1) you cannot claim back and 2) you will never have the option to own the car at the end of the 3 year agreement.

Alternatively you have the option of a personal contract plan. Payments would probably

be around the same cost per month (once VAT is factored in to the figures), you have the ability to own the car at the end or to upgrade for a newer model or better spec.

Skoda Finance do have some very competitive finance packages at present.

Hope this helps.

Lee

[stevehg]

I've found personal leasing to be not competitive compared to countries like US. Lots of the deals publicised are only for commercial not personal nd personal rates tend to be higher.

So personally, PCP seems to be a more efficient option in uk if not buying outright.

Cheers

Steve

[Clive 1939]

Many thanks to all for the advice. Difficult decision, but I've half-decided to go the leasing route. Got a quote for a 140BHP TDi estate SE PLUS with a few 'extras' for £2K down up front and £350 a month for 3 years (10,000 miles/year). It includes servicing and routine maintenance + tyres + breakdown cover. By the time you've factored-in depreciation on a new 'buy outright', and the fact that (in my case at least) I get a higher-spec car than I could afford to buy outright, plus hassle-free motoring............Well, we shall see. If this thread's still open when I get it, I'll update this so you can see how it turns out! many thanks again for the responses. This is a great site!

[HighFive]

My Superb is on a 24 months contract hire. I do 35k mileage a year so it was easy to tailor the contract to my exact mileage as it hardly varies. I went for 24 months mainly to avoid the big cambelt service at 80k and also benefit from Skoda 2 years unlimited mileage warranty. I took this route after purchasing cars outright and then running them to very big miles. The trouble is, I found in my circumstances, the theory was good but at the rate of mileage the maintenance costs can be quite dramatic plus the initial outlay for a "depreciating assett". After my Passat was written off in an accident (just DAYS after a big 500 pounds service too!!!!!!!!!!) I sat at home one day and going through its 5 years of servicing receipts was astonished how much I had spent on maintaining it thoroughly to achieve big trouble-free mileage. The more I looked at it, the more a contract hire looked tempting, you just have to get over the "but I don't own the car" thing in your head!! Very unlikely I will be going back to ownership in my current situation with the high mileage etc. In just under 12 months time the car is collected and I have the option to start again if I wish. I am VAT registered so get half the VAT back on the hire. I like knowing my exact budget for motoring - I did not go for a maintained package as I knew what the servicing and tyres costs would be in advance (plenty of VW LongLIfe maintenance experience in the past). My Superb Greenline will see 3 x LongLife services while in my hands and then will be returned approx 8000 miles before the 4th one. I should only see 1 x tyre replacement as I usually see 40/45k from a set (contrary to popular belief the motorway is a good place to get the max out of tyres on a car if your style is smooth rather than aggressive).

Leasing and/or contract hiring is a very efficient way to do your motoring if your circumstances fit it. Anyway, the general rule is - never purchase outright a depreciating assett :wonder: Hope this heps.

Edited 22 February, 2012 by HighFive

[davekmoore]

Many thanks to all for the advice. Difficult decision, but I've half-decided to go the leasing route. Got a quote for a 140BHP TDi estate SE PLUS with a few 'extras' for £2K down up front and £350 a month for 3 years (10,000 miles/year). It includes servicing and routine maintenance + tyres + breakdown cover. By the time you've factored-in depreciation on a new 'buy outright', and the fact that (in my case at least) I get a higher-spec car than I could afford to buy outright, plus hassle-free motoring............Well, we shall see. If this thread's still open when I get it, I'll update this so you can see how it turns out! many thanks again for the responses. This is a great site!

So you ARE registered for VAT?