OMO: Car Leasing

[Roberrrrt]

Afternoon OMO!

I'm looking for a bit of advice on car leasing. My OH's car is a 10 year old VW Lupo which has started to develop some costly problems, so much so that she now wants rid (been advised it's a potential money pit). :rolleyes:

She's after a Fiat 500 and has just been recommended the lease option by a friend. My thoughts initially:

Pros:
Brand spanker :cool:
Manufacturers Warranty
No MOTs
No expensive 'buy-out' at end of fixed term, simply hand back or get another
Reasonable monthly cost (circa £150 over 36 months)

Cons:
You don't own the car :smt009
Limited to 10k miles P/A (she only does around 6-7k atm)
GAP insurance to consider
Must be handed back in 'reasonable' condition - open to abuse?

On top of all that, a car is looking more and more favourable for my career as my seniority in the role progresses, so I'm actually weighing up options for myself at the same time (no 500 for me mind...) - so do we think there's a deal to be done if we lease two at once? :-s

Apologies for long post, but opinions very much welcome, surely someone has had experience of leasing before?

Ta muchly. :D

[Sir Trev]

Depends what you want from a car. If having something new is important, with no maintenance, tyres, RFL (depending on your package) lease can work. BUT, you pay for that ease of use by having no asset at the end of it. They are particularly helpful for people with a car allowance who want to effectively keep all of the perks of a company car but for most users PCP with a deferred balloon payment is normally recommended - most of the benefits and often a similar monthly cost. Downside of PCP is you are fairly well tied to one manufacturer if you want to change your car often whereas with lease you can chop and change.

[mattSV]

My Alfa Giulietta is leased from the same group as Fiat, 'reasonable wear and tear' is as defined by the British Car Rental Association (or something like that) - Fiat Finance should be able to provide a brochure that fully explains what is acceptable and what is not when you return the vehicle.

10k limit is not really a con if she only does 6-7k at the moment. i have a 10k limit on mine, 18 months in to the contract have still only done 14k - which includes a 4500 mile trip to Italy.

I managed to get GAP insurance thrown in with my deal, however a few minutes googling GAp insurance will save you a few quid over what FAG (Fiat Automotive Group) charge.

Another Pro is that Car Tax is also included in the monthly lease...