Leasing a small car - good plan? | Ask Honest John

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Leasing a small car - good plan?

I calculate personal lease costs, using Fleet Prices, over 2 or 3 years. I am surprised to find that the Juke, Note and Captur are just over 30%of the retail price over 2 years, whereas others, like the Polo, are over 50%. Also surprised to find that some cars have a lower monthly rate over 2 years cf. 3 years and that diesels are often cheaper than the equivalent petrol model.

I'm looking for a better ride than my current Picanto for my 6000 miles per year, mostly under 35mph. Which of those 3 would do the job best, are there any downsides I should be aware of on a 2-year lease, and do I need to worry about DPFs?

Asked on 1 March 2014 by RayUK

Answered by Honest John

I never work to fleet 'residual' percentages because they are quoted on list prices ands no one pays list prices. But if you are saying that you can lease a car for 3 years for a cost of 10% of its transaction price a year, then that looks like a good deal. Assuming a £15,000 transaction price inc VAT, and lease payments amounting to £1,500 a year inc VAT, you can't go too far wrong. Even if you have not accounted for VAT on the lease rentals, that's only £300 more a year; still only £150 a month inc VAT.

Tags: buying lease cars new cars

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