Hire Purchase

mikep · 22-02-2007 09:43AM #1

Hi

Is going the hire purchase route for a new car with the intention of replacing every 2 years or so madness??

Can anyone clarify how people manage to get new cars and replace every 2 years??

My head is numb from a freakin cold so the ol' grey matter is sluggish this morning!!

crosstownk · 22-02-2007 10:28AM

If you intend to replace every 2 years then maybe you should consider leasing rather than hire purchase. It rids you of the headache of selling/trading in. It may work out a little more expensive, but it's worth getting a few quotes.

racso1975 · 22-02-2007 12:13PM

can ya give me an idea as to how leasing works

iremex · 22-02-2007 12:35PM

bmw are doing a nice little deal at the moment with the 1-series and 3-series.

you basically get the car on a 3 year lease, the 3 series comes in at 600p.m. with everything included. obviously there are limitations like milage(to keep sales reps out of them!) and on wear and tear..

personally i would opt for leasing if depreciation is going to be more than what the car is worth at the time of sale. ppl will usually go for the whole "well at least you have something at the end of the loan repayment, i.e. the car"

a 38k new BMW 316ES @ €599 over 36months will cost 21.5k in repayments with a lease
the same car to repay using the traditional loan over 3years will cost a little over 1,280k per month, not taking into account depreciation and loss of value at point of trade in.

the €680 different in the lease and buying option works out at about 25k extra into the car, which is what the car is worth on the forecourts but doesnt neseccarily mean you will get that when trading it in.

i'd lease new cars and buy older cars that dont depreciate(leasing a new volvo at the moment and bought a 1991 mercedes SL300)

crosstownk · 22-02-2007 01:37PM

racso1975 wrote:

can ya give me an idea as to how leasing works

Basically, with a lease you don't own the car - you more or less have a long term rental. The leasing company will subtract the residual value (which is based on make, model and intended mileage) from the new list price and charge you the difference which you pay in monthly installments over the period of the lease plus interest. You can, for an extra premium, opt to have contract maintenance whereby the leasing company will pay for road tax, servicing, tyres and mechanical breakdown. Repairs due to damage are payable by you.

If you do decide to lease, get a few quotes as there can be considerable difference between leasing companies when it comes to estimating the residual value.

jesus_thats_gre · 22-02-2007 01:55PM

Anyone know a few places that offer leasing services around the country?

Trampas · 22-02-2007 02:06PM

Joe Duffy is one.

BMV and MINI

crosstownk · 22-02-2007 02:14PM

jesus_thats_gre wrote:

Anyone know a few places that offer leasing services around the country?

www.jpfleet.ie
www.mfm.ie
www.avisfleetservices.ie
www.hertzlease.ie
www.leaseplan.ie

Hire Purchase

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