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Old 04.02.2007, 19:27
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Car Leasing v. buying

Can someone help me with this car leasing thingie! I was thinking of buying a new accord but see that Honda are doing leasing here. How does it work? Do I lease for a set time then pay a final figure and own it, or do I lease ad infinitum and just keep changing the car etc? Never done it before so would appreciate advice or thoughts. BTW I will be paying for it not the company.

TIA
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Old 04.02.2007, 20:34
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Re: Car Leasing v. buying

Hey S!
At our garage, you have the option of doing either one!

The larger the down payment you make, the lower your monthly rates, and you typically keep the car up to 4 years, at which time you can finish paying it off to then own it or you change up and get a different car.

Leasing is not the way you want to go if you know in advance that you want to own the car. You end up paying more in interest in the end with leasing. However, some people decide to lease for obvious reasons - they haven't got the means to pay for the car outright!

HTH!
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Old 05.02.2007, 09:06
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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.
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Old 05.02.2007, 11:32
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Re: Car Leasing v. buying

Quote:
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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Old 05.02.2007, 13:22
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Re: Car Leasing v. buying

Just an idea: how about getting a cash loan from, say, Migros Bank. Pay for the car cash (should get a sizeable reduction) and pay back the loan monthly to the bank. That way, the car's yours and you can decide if you want full- or just 3rd-party insurance...
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Old 05.02.2007, 13:39
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Re: Car Leasing v. buying

Quote:
Just an idea: how about getting a cash loan from, say, Migros Bank. Pay for the car cash (should get a sizeable reduction) and pay back the loan monthly to the bank. That way, the car's yours and you can decide if you want full- or just 3rd-party insurance...
Garages don't tend to give reductions in the price for cash sales. We tried it when buying 2 of our cars over the past few years and on both occasions were told the price is the price. Friends have also had the same experience.
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Old 19.10.2007, 15:52
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Re: Car Leasing v. buying

Does anyone know of a service or individual who will assist foreigners in the car buying/leasing process?
I asked my relocation company, but they don't offer this.
Coming from the US and relatively saavy on the car-buying process, having bought and sold several of them + a best friend who used to work at a dealer and fed me all the angles used...
But I'm in Switzerland now and I respect that some things may be different while some are the same. Would love an insider to help guide me, particularly around language barriers. Would be happy to pay a fee to someone sharp and helpful that I trust.
Thanks,
Washbrol
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Old 19.10.2007, 16:49
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Re: Car Leasing v. buying

Additionally:
Any suggestions on where to get the best car loan? (I would prefer to lease, but when buying from a private seller, my leasing company legally can't do it, due to TVA restriction).
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Old 17.01.2008, 00:19
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Re: Car Leasing v. buying

Hello

Can anyone advise how I return my leased car. The garage has already ripped me off. Said they would give me something for my old car and then changed their mind and said "oh we cannot get enough for your car so we think you should give us the money" ?? Now they keep sending me bills for the amount they said they would give me in part exchange. I can' believe how dishonest they are.

Now I don't understand how to get out of the lease. I have only had the car six months.

Many thanks
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Old 17.01.2008, 09:08
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Re: Car Leasing v. buying

getting out of the lease at this point may be expensive - do you have anything in writing from the garage with regards to your old car?

also - if you've had the new car six months, the garage has been trying to sell your old one for the same time?

It might be worth speaking with a solicitor on this. There may be certain things implied by the garage having the car for six month.
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Old 17.01.2008, 13:46
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Re: Car Leasing v. buying

Hi

Thanks for your reply.

Silly me took him at his word and handed over the papers for the car. I have nothing in writing. I am really angry. When I received a bill I telephoned and said what about our agreement and he simply said he had changed his mind, he does not think he will get enough for the car and it is better if I give the money to him and then he will give me what he gets when he sells the car. I said that is not the agreement we had. Now he has simply ignored me and treated me like a customer who has not paid the bill.

I will now to to the owner of the garage and express my dissatisfaction and ask for a resolution.

On top of that I now hate the new car, since every time I use it I am reminded of how badly the company have behaved and just want to get rid of it.

I will see what the owner of the garage has to say.......
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Old 17.01.2008, 20:57
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Re: Car Leasing v. buying

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Hello

Can anyone advise how I return my leased car. The garage has already ripped me off. Said they would give me something for my old car and then changed their mind and said "oh we cannot get enough for your car so we think you should give us the money" ?? Now they keep sending me bills for the amount they said they would give me in part exchange. I can' believe how dishonest they are.

Now I don't understand how to get out of the lease. I have only had the car six months.

Many thanks
This is very strange. You have a lease with a finance company arranged by the garage? The contract should have details such as new price of car, value of accessories, discount applied, part exchange taken off, actual amount of lease, etc etc. If the part exchange is mentioned then you are covered and you should contact the finance company direct and give them the details - they have bigger lawyers than the garage.

Also, in court the fact the garage gave you no paperwork regarding the part exchange will work in your favour - it is up to them to write the contract, not you. By accepting the commission from the finance company, supplying you with the car, and accepting your old car they don't appear to have a leg to stand on.
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Old 17.01.2008, 21:18
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Re: Car Leasing v. buying

Yes it is a brand name dealer. My old car broke down and the insurance delivered it to the garage in fact there is another story there and perhaps why I am so angry.

So I was working a contract the other side of ch and needed transport. Insurance provided hire car and I later leased a car. I leased through the big name dealer bank. The contact details show no discounts at all and the garage did the paperwork for me. I don't owe anything to the leasing bank but the garage want the deposit which was supposed to be the exchange price for the old car.

I specifically asked for some small part exchange because the website was offering up to 5,000 as part exchange deal. He said yes, but the contract does not mention it. When I received a bill I thought it was a mistake, each time I thought it was a mistake. No one has come back to me about my car or the set of almost new (two months use) summer tyres?

I realise now that it is the same here or worse than the UK regarding being ripped off, guess they saw me coming.

Spoke to the Garage owner today who said he would find a solution and call me back. He has not called me back.

It is draining continually standing up for my rights.

I still have no idea how to give the car back. Do I have to buy it or can I go to another dealer and somehow exchange it for another car, or, can I just give it back to the garage keys and all?

Thanks for your replies
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