Hire purchase or lease?

[Hellmooth]

hi guys,

Quick one, looking at getting a new van, undecided whether to lease or buy through hire purchase, if anyone has any experience it would be much appreciated, thanks.

 

[danzor]

HP you'll own it eventually. Lease you need to make sure you have enough mileage and when you hand it back you tend to get another bill.

Personally HP.

 

[Octopus]

Bank loan ....

 

[westward10]

My boss is a whizz with figures and he goes for the best deal and that is either buy outright, lease or lease purchase. If leasing check the conditions and whether servicing and expendable parts like tyres are included.

 

[rolyberkin]

I am buying at the moment, for me I think it will be better to buy but I intend to buy cash and treat as a loan to my ltd company so I will charge it back interest free over 36 months. I just see that after three years it will still have some value which I can then use towards a new one. I can see the appeal of lease as long as you know your mileage and are sure the mileage they give you is sufficient for your needs as excess mileage is normally chargeable, you also have to consider are that you may have to shell out a bit to get it tarted up when you give it back if it is damaged marked etc. I used to have company cars and they normally had a trip to my local friendly body shop for a tart up the week before being given back. There are some blinding deals and finance to be had on pre registered Renault Trafic at the moment via Renault Retail if the brand floats your boat.

 

[Hellmooth]

I am buying at the moment, for me I think it will be better to buy but I intend to buy cash and treat as a loan to my ltd company so I will charge it back interest free over 36 months. I just see that after three years it will still have some value which I can then use towards a new one. I can see the appeal of lease as long as you know your mileage and are sure the mileage they give you is sufficient for your needs as excess mileage is normally chargeable, you also have to consider are that you may have to shell out a bit to get it tarted up when you give it back if it is damaged marked etc. I used to have company cars and they normally had a trip to my local friendly body shop for a tart up the week before being given back. There are some blinding deals and finance to be had on pre registered Renault Trafic at the moment via Renault Retail if the brand floats your boat.

I actually have a trafic at the moment have had it for 2 years, I love it but it is too small, this is the main reason I am getting new. I have been looking at Transits, but will be looking at others, the worry with the Transit is the locking issue. Looking at HP, it requires £4K deposit though and a balloon payment after the 4 year finance of £5k. The other option is leasing but it is more expensive monthly but with a smaller deposit, I then have to worry about mileage and how the van is after the time period, I have done 40k miles since I have had the van don’t think it would be covered for the price I have been quoted, will need to look into it. Thanks

 

[rolyberkin]

I have had so many people tell me they have had trouble with the new Ford Transits I have been put off them, one of our maintenance firms at work has had about three back and forth to Fords with issues, plus my eight year old could probably break into one with an allen key. I like the idea of the lease plans but having had numerous cars I know how slippery they can be when you go to give them back and I know how much damage my current van has on it!

 

[westward10]

This is the problem with leasing you need to take care of it or suffer charges. My boss leased a Golf R and at the end the lease last year the company offered it to him for £17k but he didn't want it, he asked me if I was interested but I said no, what a bloody mug it was probably £10k below its value. He thought I was crazy, yep I was.

 

[Delboybully]

I bought a new Van in jaunaury. I spoke to my accountant about the most efficient way to buy a van and she said the best way is buy outright.
The next best way is bank loan followed by hp. Leasing came last due to the fact you have nothing at the end of it.
Also leasing companies stick you with a bill I'd you go over allowed mileage or for any damage.
I bought a pre registered van outright with 18 miles on the clock. There are loads of pre registered vans out there and they are cheap compared to new and if things go quiet due to a recession I don't have to worry about paying the monthly payments. So if you have the money buy outright if not get a bank loan.
My long wheel based trafic business+ was 13.600 + vat.

 

[Octopus]

Look at the interest rates you can get on a £10K loan over 5 years:

£10,000 loans over five years - Which? - http://www.which.co.uk/money/credit-cards-and-loans/loans/guides/best-personal-loan-deals/10000-loans-over-five-years

The AA looks the best as there aren't any early repayment penalties!

 

[Hellmooth]

Look at the interest rates you can get on a £10K loan over 5 years:

£10,000 loans over five years - Which? - http://www.which.co.uk/money/credit-cards-and-loans/loans/guides/best-personal-loan-deals/10000-loans-over-five-years

The AA looks the best as there aren't any early repayment penalties!

Never works out like that unless you perfect credit, my rating is above average, but I now have a negative for applying for a few bank loans wothin a year, due to the fact they tell you that you’ll pay £700 odds on a £10k loan, but when you apply they want thousands!

 

[Octopus]

Never works out like that unless you perfect credit, my rating is above average, but I now have a negative for applying for a few bank loans wothin a year, due to the fact they tell you that you’ll pay £700 odds on a £10k loan, but when you apply they want thousands!

No harm in applying to get an actual quote

 

[Hellmooth]

No harm in applying to get an actual quote

That is what I done, but after refusing the quote I then went elsewhere, same thing, after 3 attempts I gave up, but it went against my credit score and still have it as a negative on my name now!

 

[rolyberkin]

I asked Renault for a quote two days ago, told them I am a cash purchaser and they haven't been arsed to come back to me yet!? Might have to look elsewhere!