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Old 23.08.2021, 01:20
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Help with Understanding Leasing - Specific Deal

My husband has a chronic illness and can't work here, so we live on one salary and don't really have much money. My 15-year-old car has finally packed it in, and I am pregnant, so we are expecting to have even less money in the next few months when the baby arrives.

I only have about 5000 CHF to spare and lots of outgoings, so buying second hand isn't going to get me a great deal. I am also going to be losing 20% of my salary for four months while on maternity, which is going to be incredibly difficult as, like I say, we live on one salary under 100k. So, I'm looking at leasing. Most deals I can't afford (my budget is at most around 200 CHF a month), but I am looking at the Dacia Duster.

Online, there are two options when I put in my details (down payment of 5000 CHF, lease of 24 months, and 20,000km). It either shows me 41 CHF per month (surely too low to be real?!), with protection for coverage in case of chomage or incapacity to work, or 214 CHF. The 214 CHF gives me an extended warranty, coverage for worn parts, car insurance, and also the protection for chomage/incapacity.

My question is this: would I be stupid to go for the lower rate without the insurance etc.? It seems to me that I could get a similar insurance price myself, or perhaps even cheaper. And does "extended warranty" not suggest that there is already a warranty for the car (i.e. a manufacter's warranty)? It also seems unlikely that I would need coverage for repairs of worn parts if the car is new or newish.

I've heard people talking about maintenance and servicing being expensive with leasing, but I don't really understand why. Are there stipulations in the contract about when and where to service? Is this what makes it expensive? If so, would it then be better to take the more expensive monthly payment to include that?

I've never leased a car before and my French is only B2, so struggling a bit with this. Any advice would be helpful!

N.B. I am basically looking for the lowest possible monthly payments to try and cut the cash flow, but I don't want to make an error and choose something that doesn't have the protections that I would need.
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Old 23.08.2021, 03:44
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Re: Help with Understanding Leasing - Specific Deal

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My question is this: would I be stupid to go for the lower rate without the insurance etc.?
I think it'd be pretty stupid to even consider leasing a new car in your situation in the first place. 5k is enough cash to buy some decent (>> duster) sub-10y second hand car outright that you should get another decade of life from. And you want to sign up to spend 11k (5k+24x241) and not even end up owning the frigging car in the end

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It seems to me that I could get a similar insurance price myself, or perhaps even cheaper.
Yeah but not that much cheaper. All leasing companies want Vollkasko and that costs a pretty penny, easily 1-1.5k a year. Whereas if you own the car outright and don't mind a scratch here and there, you can get by fine with just liability insurance which is much cheaper

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I've never leased a car before and my French is only B2, so struggling a bit with this. Any advice would be helpful!
Leasing is marketing ploy to sell new cars to rich/stupid suckers. You say you aren't rich, so that makes you...
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Old 23.08.2021, 08:56
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Re: Help with Understanding Leasing - Specific Deal

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I think it'd be pretty stupid to even consider leasing a new car in your situation in the first place. 5k is enough cash to buy some decent (>> duster) sub-10y second hand car outright that you should get another decade of life from. And you want to sign up to spend 11k (5k+24x241) and not even end up owning the frigging car in the end

Yeah but not that much cheaper. All leasing companies want Vollkasko and that costs a pretty penny, easily 1-1.5k a year. Whereas if you own the car outright and don't mind a scratch here and there, you can get by fine with just liability insurance which is much cheaper

Leasing is marketing ploy to sell new cars to rich/stupid suckers. You say you aren't rich, so that makes you...
I forgot how unpleasant this forum is, so thanks for being another a***hole. It is possible to offer an opinion without being so unpleasant, you know.

I didn't ask whether I should lease or not, I asked for help and advice understanding the specific deal I listed. I am well aware of what buying a secondhand car entails, having done it all my life, but I have different and specific requirements for several reasons now that I don't need to disclose to you, a stranger, and leasing is the option that I am probably going to choose. So I want help understanding the deal, not unsolicited opinions from quite rude people on whether leasing is or is not a good idea.

If anybody else could help out with my specific questions, I'd much appreciate it.
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Old 23.08.2021, 09:58
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Re: Help with Understanding Leasing - Specific Deal

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I forgot how unpleasant this forum is, so thanks for being another a***hole. It is possible to offer an opinion without being so unpleasant, you know.

I didn't ask whether I should lease or not, I asked for help and advice understanding the specific deal I listed. I am well aware of what buying a secondhand car entails, having done it all my life, but I have different and specific requirements for several reasons now that I don't need to disclose to you, a stranger, and leasing is the option that I am probably going to choose. So I want help understanding the deal, not unsolicited opinions from quite rude people on whether leasing is or is not a good idea.

If anybody else could help out with my specific questions, I'd much appreciate it.
Kerneltrick is actually in part giving you some reasonable generic advice (which is all one can do with an incomplete picture - as you have since told us there are other circumstances), albeit is being rather blunt.

The useful part of the advice is that after paying 5k and then x per month, at the end of the leasing period you will have to either give the car back or find the money to make the final payment. This is why the monthly payments are so low as you have noted. I'm assuming you are looking at the 12.5k Duster, so what you are doing is paying 5k deposit and then paying interest only for 24 months on the remaining 7k, which you will then have to pay to own the car in two years time. I have to agree with Kerneltrick that this doesn't strike me as a good deal, but we don't know your circumstances.

Comparing the lease offer with the "platinum version"...

Despite what Kerneltrick says, the insurance for a 35 yo woman living in Vaud with a B permit since 2017 is actually about 600 a year (and that was for the 20k model). The offer from Dacia says that the insurance is over 1,000 a year.

As a leasee you don't own the car, so I believe that the company can insist that you use their network to service the car. However, I can't see it being that expensive over 2 years to do an oil change or two.

The car comes with a 2 year warranty. This seems rather low to me, but if you only plan to keep the car for two years (is this why you have chosen a 24 month lease? Otherwise for very little extra a month you can keep kicking the final payment can down the road for up to 5 years), it doesn't really matter.

I've no idea what coverage for worn parts means. Does it mean tyres and brake pads? I can see you needing to replace the tyres after 40,000km (or not if you buy winter tyres, which I assume you would). Brakes shouldn't need replacing that soon. Guessing a set of winter or replacement tyres will be about 500.

I don't see the value in the platinum plan. I think you can do better yourself.
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Old 23.08.2021, 10:50
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Re: Help with Understanding Leasing - Specific Deal

Leasing can be attractive if you want worry free motoring with everything included and you can stretch the payment over many years with low (e.g. 0.9%) interest. If I were in your situation I would also look at Kia and Hyundai as they have 7 and 5 year warranties as standard, and compared to Dacia they will have a lot more standard equipment for not much more money. However if you've set your heart on the Duster then make sure you know what you're getting for your money since the base models can be very primitive, hence the low sticker price.

In any case you should pop down to the dealer, have a look and a test drive and then sit down with a salesperson to run through all the figures. Most dealers have someone who speaks English, and at least for the sales part they will be very helpful and accomodating to your needs.

Good luck.. with everything
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Old 23.08.2021, 11:11
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Re: Help with Understanding Leasing - Specific Deal

To be clear, 5'000 initial payment and then 2 options for 2 years. Option A, 41 CHF per month without insurance. Option B, 214 CHF per month, all insurances including full accident insurance, chomage/death, etc.

During the first 2 years, I'd expect only to add gas, motor oil and windshield water fluid. Quite improbable that you need new brake pads, or even tires during that time. But, check the contract for something very important. If it says you need to do oil changes at Renault/Dacia authorized places, they will charge labor and parts costs. Check how much an oil change costs. It's probable that it's cheaper than paying 214 a month, but don't be surprised by a 200 or 300 CHF oil change.

On insurance, use comparis as a reference and then get a quote from insurance sales people https://en.comparis.ch/autoversicherung/ Insurance is based on past records, nationality and age. Make sure cheaper insurance exists.

As eyebee mentioned, think about winter tires. They're never mentioned during the sales process but you'll need them by November.

PS. there's a table in the leasing contract that established the penalties for an early termination of the contract. Check how much it is.
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Old 23.08.2021, 11:31
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Re: Help with Understanding Leasing - Specific Deal

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On insurance, use comparis as a reference and then get a quote from insurance sales people https://en.comparis.ch/autoversicherung/ Insurance is based on past records, nationality and age. Make sure cheaper insurance exists.
It might be obvious, but make sure you check the box for full casco which is mandatory for leased cars.
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Old 23.08.2021, 11:32
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Re: Help with Understanding Leasing - Specific Deal

I would also look very carefully at the insurance situation - if the car is lost/stolen/crashed/blows up who pays and what is the gap on the insurance ?

I assume the car is essential either due to your husband's illness or to allow you to keep your job and manage your childcare situation.
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Old 23.08.2021, 11:45
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Re: Help with Understanding Leasing - Specific Deal

Thanks, everyone.

With regards to the Dacia, it is because it is a reasonably reliable car for the price and I need an AWD. It's a toss-up between that and a Suzuki Ignis. I like the idea of the Ignis, but obviously it's a bit pricier.

I'd most likely be buying the car at the end of it (as hopefully finances will be less tight), though not necessarily at the end of the two years. The 24-month lease is because the interest is much cheaper (but there is the option to re-lease the car at the end of the 24 months anyway) and also because I do not want to engage in a long contract here in case I end up needing to leave Switzerland. I am sure that, unforeseen circumstances aside, I will be here in two years. It makes sense to me.

I need a reliable car that can manage the snow here on the mountains and that will give me more security, i.e. unlikely to have to replace expensive parts like the gearbox etc. When you don't have much money, as we don't, paying a little extra overall for the security of not having sudden large bills makes much more sense and gives more security. There are also other, more private, reasons for needing to lease.

I'm going to the Dacia garage today, and I was at the Suzuki garage this morning. With the Suzuki, there is no stipulation to buy any particular kind of insurance except the fully comp (which I already have for my current secondhand car). I don't foresee this being more than 800 francs a year.

Thanks so much for all your help!
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