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Old 05.02.2007, 11:32
Richard Richard is offline
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Re: Car Leasing v. buying

leasing is similar to HP in the UK - bar the fact that you can of course elect to lease to zero or lease to the value that the car will be worth at the end of the lease (thus allowing bubble payment to own the car, if you wish).

With the right permit, I believe you can offset the interest on the lease.

A garage will not organise a loan for you; you do this through your bank.

If you want to sell your car before the lease is complete, you have to pay the lease off and get the form from the lease company to allow you to transfer the ownership documents to someone else.
You can offset the interest on finance but leasing is seen as service cost and not finance and for that reason you cannot offset the interest. However the interest is appreciably lower than finance so it probably is the way to go.

Note also that while it is possible to lease down to more or less any amount you need to cover your backside. Same goes with the Km. I had a company lease agreement where they simply put down km at 15k per year. After 3 years I was by 115K. The lease agreement had something like 60 raps per km over the agreement ie SFr. 42K to pay. The leasing company promptly sent a bill for that amount and refused to sell the car on. It needed lawyers to get them to sell the car. Every since I have had a side agreement that they will sell the car after 3 years for the restwert ie residual value. And never used the leasing company again - been bought out anyway but neverthless.

So be honest more or less with the Km and ensure you have as big a bubble as possible - costs more but makes life easier at the end of the lease.
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