Hi all, I have never bought a car on lease before but I am thinking of picking up a Superb in the near future. I am trying to understand the deposit principle and whether the first payment is a deposit or just a large first monthly payment. Now I understand that if I walk away at the end of the lease period that the deposit is not returned, but what I am trying to understand is if a deposit is always payable at the start of every lease. So for example if I took a Superb on a 3 year lease from Skoda and then at the end of that 3 year lease I took another 3 year lease for a new Skoda do I have to pay a deposit again, or does the return of the original leased vehicle act as my deposit on the new lease. Hope that makes sense! Any advise welcomed.

If you are buying on PCH your 'deposit' is actually your initial payment, so you don't get that back as it forms part of your payments.

Your monthly payments will vary in amount depending on the size of your initial payment, ie large initial payment =smaller monthly payments, or, small initial=larger monthly.

Are you buying the car or leasing it?  Two different concepts.

 

If you buy the car then when you come to change it the value in the car can act as a deposit for the next one (providing the original price is paid in full either up front or as a balloon payment on PCP).

If you lease a car then when you come to change it a new deposit is paid as you have no value in the old car that is being returned.

 

Leasing is effectively paying the depreciation during the time you have it with no final payment to be made at the end of the arrangement.