Proof That Car Leasing Is Cheapest

Friday, 11. July 2008

We are not in a recession – yet! But signs are that we are moving that way so now may be the correct time to consider leasing your car and take advantage of some of the deals that are about at the moment. It’s all about cash flow and contract hire will certainly provide you with the best cash flow and there is some even better news which I’ll talk about in a moment. If we look at the Audi A6 that we have on special at the moment the cost after 3 months payment in advance would be £329 + VAT per month (£387 per month inc VAT) but if you bought the car on HP over 4 years you would be paying close to £700 per month. And if you tried to remove yourself from the 4 year contract after 2 years the chances are that you would be out of pocket having already paid £300 more per month for the privilege! One other advantage that few are aware of is the ability to buy the car from the funder at the end of the lease. It’s true, most funders would sell you the car you have been driving for a little over trade money. So not only would you have been able to drive the car at least cost for a couple of years you could still own it and pay thousands less for the car than you would through a main dealer. So if you have cash tied up in a car at the moment I would suggest that you get out of the car as quick as you can before you lose much more and let someone else worry about depreciation. This situation doesn’t just apply to executive cars, a Vauxhall Astra 1.9CDT1 150 SRI 3Dr Sport Hatchback would cost £18,500, we have it for £209 + VAT per month (£245 per month). A 4 year HP would cost £480 per month, oh and if you changed the car after 2 years you would be lucky to manage to pay off the outstanding finance. By this time you would have paid £11,520 compared to the lease after which you would have paid £6,370. So £5,000 better off and you still have to sell the car! It’s a no brainer!!! The icing on the cake is that you can still offer to buy the car from the funder at a shade over trade money.