If you look at the manufacturers adverts, then the answer is yes and no. As an example, a new car was offered in December and yes it was £100 per month. But the initial payment was £1200 and in small print was noted a final payment of £4595, subject to model and specification. This is not really leasing, but is closer to hire purchase, with a balloon. Your monthly payment covers interest on the balance and the balloon and you own the car at the end. But taking this example, you end up paying a total of £10,595 for the car, and in reality its worth something in the area of £4000 at best. In the battle of leasing v. buying we believe that there is only one winner.
Compare the purchase deal with our lease deal for a Vauxhall Corsa 1.2 EcoFlex deal, you pay £830 initial payment and £94.95 per month for the same 4 year period. All figures, in both cases exclude VAT, so the comparison is fair (Corsa 1.3 Sxi Cdti walkround)
Over the same period the Corsa (test drive) has cost you £5387.60 as an oppose to £6,595 for the new car with a balloon. The difference between the deals is that a leasing company can reclaim 100% of the vat on the car that it is going to supply to you. On a small car, the vat plus any accrued interest will equate to the difference between the two figures, the saving is enough to pay your next initial payment on your next £100 per month car, with only your monthly rental to pay over the next three or four years
Or maybe a FIAT 500 Colour Therapy ?
