Another 'take' on PCH
'This is an idiots guide email I send to family. Not sure if it'll help mate
Basically with leasing you are trying to beat the depreciation of a new car and selling it on in two years.
The general rule is add all the costs (amortised) together and then divide by the value of the car * 100.Less than 25% is good. Less than 20% is excellent. If you think most cars lose 20% in one year. The closest to 2 years lease, 10k miles per year the better.
Most of the time it's better to pay for less miles and pay the excess mileage charges. I have attached my Volvo quote to give an example.
Monthly rental £272.18
Initial rental £0
Admin fee £0
8k miles a year.
It's an 18 month lease so will extend the calculations to 24 months.£272.18 * 24 = £6,532.32Value of the car is £45000So 6532 / 45000 * 100 = 14.5156% so I am paying 14% of the value of the car over 2 years.
I would suggest GAP insurance as well, especially if you have a high initial rental. Initial rental is normally 3,6,9 or 12 months upfront.
With the Golf R I paid £1700 upfront the first month. Because I had gap insurance, they paid me that back after it was stolen / written off. That’s an extra called initial rental cover. Best coverage is ALA insurance, use MSE25 code at checkout to get 25% off. Use the link below though.
moneysavingexpert.com/redir/896efb84
I only use two sources to find deals. I have an alert for the word lease on HUKD app.Other source is Pistonheads forum, they usually post deals and then the % so you don’t have to work it out yourself.
I have pasted a link to page 29, which is the current latest. Page change be changed at the bottom of the screen.
pistonheads.com/gassing/topic.asp?h=0&f=255&t=1801047&i=560
Hope that makes sense. With leasing you have to be flexible with car choice. Good deals happen because a manufacturer wants to push out a particular car or outgoing model due for a refresh.'