Leasing a car....

[Armitage Shanks]

Silly question...

If I lease a car for 3 years, and say the deposit is 4500, with 300 month payments.

After the three years do I then have to put another deposit down ? If for example it's for the same model but obviously newer car. Or do I just continue with the monthly payments.

Leasing sounds good but can't fork out £4500 every three years

[JumpersforGoalposts]

Silly question...

If I lease a car for 3 years, and say the deposit is 4500, with 300 month payments.

After the three years do I then have to put another deposit down ? If for example it's for the same model but obviously newer car. Or do I just continue with the monthly payments.

Leasing sounds good but can't fork out £4500 every three years

It's not actually a deposit, it's an initial or up front payment.
There will not be anything to roll forward to a new deal at the end of the lease.
You need to compare the total leasing cost over three years with the likely depreciation cost of ownership.

[Jimmy the Jock]

Silly question...

If I lease a car for 3 years, and say the deposit is 4500, with 300 month payments.

After the three years do I then have to put another deposit down ? If for example it's for the same model but obviously newer car. Or do I just continue with the monthly payments.

Leasing sounds good but can't fork out £4500 every three years

300 months is a bit longer than most lease deals.

I guess you are having a fairly expensive car and the payments look excellent ?

There is usually a catch when it looks to good to be true ...the initial payment in this case.

[J R Hartley]

Depends if you are going for a full lease or a PCP deal.

Either way they are not all they are cracked up to be and they will try and chin you at the end of the deal.

Youd be better off buying something a bit cheaper outright if you are putting £4500 down and got a budget of £300 a month. Thats a total of £15,300 over 3 years or £18,900 over 4 years. Pick up something in the £14k-17k range for that. At the end of those terms you'll own the car and will have a lump to put towards your next car.

[J R Hartley]

It's not actually a deposit, it's an initial or up front payment.
There will not be anything to roll forward to a new deal at the end of the lease.
You need to compare the total leasing cost over three years with the likely depreciation cost of ownership.

If its a PCP deal he will have the original car to roll over onto the next deal, but he will always have that bubble there which unless he comes up with another huge lump at the end of the deal means he never owns the car outright.

[blue matt]

when we used to PCP, paid nothing up front to start, then paid our monthly payments, then at 30 months ( it was a 3 year deal, but they always offered us a out at 30 months ) they took the car as the deposit and we started again with a new car and the same monthly payments

the only downside was only 12 K miles a year ( then you get hammered ) so coming upto 30 months we had to watch when we drove ( so just used either of the vans )

it worked well for us to be honest

[Fine Lines]

The essential difference between leasing and PCP is that you won’t build up any equity in the lease car. Where was you will with the PCP. However this equity is usually made up of higher payments in the pcp and in effect ties you in to that make of car.

I get a discount through work which means I pay no deposit and interest free.

Any used car I’ve looked at tends to have finance around the 8% mark so it works out the same price almost.