Finance / Leasing For A Vehicle

[Saturn]

Does anyone have recommendations on obtaining a lease/finance for the purchase of a vehicle?

I've obtained leases from two companies, and had mixed experiences:

c******o leasing - very up front and open with paperwork, provided decent receipts and statements and deeply discounted payoff for an early settlement.

Another "capital" leasing company I won't name - quite dodgy, lost payments and refused to credit until receipts produced, and were very creepy when it came to settling the lease in advance..

So guys, do you have any experience with leasing companies and who would you recommend?

Edited March 30, 2011 by Saturn

[rangerover]

A bit OT, but are there leasing company's that provide leasing facilities for older vehicles. For example, if one wants to lease a mini minor, can one do so with a lease?

[Crosswind]

Does anyone have recommendations on obtaining a lease/finance for the purchase of a vehicle?

I've obtained leases from two companies, and had mixed experiences:

c******o leasing - very up front and open with paperwork, provided decent receipts and statements and deeply discounted payoff for an early settlement.

Another capital leasing company I won't name - quite dodgy, lost payments and refused to credit until receipts produced, and were very creepy when it came to settling the lease in advance..

So guys, do you have any experience with leasing companies and who would you recommend?

The only time I dealt with a leasing company was when I helped a friend to get a lease for a KIA Rio from Pe****'s Leasing.

Here are the plus and minus points:

Plus:

Many companies refused to lease a Rio but these guys did it.

Absolutely no problems with early settlements.

No-nonsense way of doing the job. They just stick to the process.

Fairly quick processing.

Minus:

You need to go there. They won't come to you.

You need two guarantors who earn more than the lessor.

You don't have much choice with insurance.

Verdict: I am ok with them, unless I can find someone better.

[milindu]

A bit OT, but are there leasing company's that provide leasing facilities for older vehicles. For example, if one wants to lease a mini minor, can one do so with a lease?

ETI had a promo for classics sometime ago. But I have seen quite a few of the smaller leasing companies handling vehicles which are uncommon or over 10 years of age provided there is a valuation report. They will usually offer only a percentage of the forced sale value and the effective interest rate will be quite high.

Generally, banks offer the better interest rates, but will require a good credit rating and will be less flexible than leasing companies in most cases. Early termination/settlement in leasing is always a Shylock moment for the lessee.

[Saturn]

Early termination/settlement in leasing is always a Shylock moment for the lessee.

Agree. In my experience, c******o were very straightforward and provided an actual printed breakdown on everything they did, together with statements on demand and via mail, whereas the other company did not - when it came to settlement they basically 'pulled a figure out of their... well... you know' and said "pay this" - c******o actually provided me a settlement document showing what I had to pay.

Though I was pleased with their leasing dept, I don't think I'll be trying c******o again, which is why I'm posting here -

Edited March 30, 2011 by Saturn

[nexus]

Does anyone have recommendations on obtaining a lease/finance for the purchase of a vehicle?

I've obtained leases from two companies, and had mixed experiences:

c******o leasing - very up front and open with paperwork, provided decent receipts and statements and deeply discounted payoff for an early settlement.

Another "capital" leasing company I won't name - quite dodgy, lost payments and refused to credit until receipts produced, and were very creepy when it came to settling the lease in advance..

So guys, do you have any experience with leasing companies and who would you recommend?

i can recommend Pe#pl#'s Le#si#g we do business with them for over 8 years now they are been good so far. they open with paperwork and no hidden charges.

[Saturn]

i can recommend Pe#pl#'s Le#si#g we do business with them for over 8 years now they are been good so far. they open with paperwork and no hidden charges.

I spoke to them - they seem to be quite good.

thanks to you and Crosswinds for the recommendation!

[Batteries]

Does anyone have recommendations on obtaining a lease/finance for the purchase of a vehicle?

I've obtained leases from two companies, and had mixed experiences:

c******o leasing - very up front and open with paperwork, provided decent receipts and statements and deeply discounted payoff for an early settlement.

Another "capital" leasing company I won't name - quite dodgy, lost payments and refused to credit until receipts produced, and were very creepy when it came to settling the lease in advance..

So guys, do you have any experience with leasing companies and who would you recommend?

Want to know why you are leasing vehicle’s it cheaper to take vehicle loan. I was under the impression that loans were cheaper than leasing.

N*B has Auto loan. There rates seem to be better than other & it’s fixed.

[Crosswind]

Want to know why you are leasing vehicle’s it cheaper to take vehicle loan. I was under the impression that loans were cheaper than leasing.

N*B has Auto loan. There rates seem to be better than other & it’s fixed.

Usually, Interest Rate = Risk-free Rate + inflation premium + liquidity premium + market risk premium

since the risk is lower (Because there is a security for the company) shouldn't leasing be cheaper than loans?

[Sifaan]

Usually, Interest Rate = Risk-free Rate + inflation premium + liquidity premium + market risk premium

since the risk is lower (Because there is a security for the company) shouldn't leasing be cheaper than loans?

I don't know if the following will still be valid from tmrw (because there were some changes outlined in the budget) but the problem is that VAT has to be charged on the lease installment and if you are an individual you can't claim that VAT. So for an individual a loan is usually cheaper. However people who can't get a loan big enough to buy the car (e.g. if salary is too low) then they go for lease.

that is the explanation I got from few places when I was looking out for a loan/lease a few months ago. and there was no difference (at least no significant difference) in the interest rates between loan/lease from the same provider.

[nexus]

Usually, Interest Rate = Risk-free Rate + inflation premium + liquidity premium + market risk premium

since the risk is lower (Because there is a security for the company) shouldn't leasing be cheaper than loans?

afaik when come to full settlement loans are cheaper than leasing.

[harshansenadhir]

Usually, Interest Rate = Risk-free Rate + inflation premium + liquidity premium + market risk premium

since the risk is lower (Because there is a security for the company) shouldn't leasing be cheaper than loans?

Lease has a VAT component and as long as you can claim VAT, a lease can consider as cheap.

[harshansenadhir]

A bit OT, but are there leasing company's that provide leasing facilities for older vehicles. For example, if one wants to lease a mini minor, can one do so with a lease?

can't do so with a capital lease as second hand vehicles are given hire purchases as oppose to capital lease. YOM of the registered vehicle, for an example whether to give a hire purchase to a mini minor or old Volkswagen is company policy and/or credit risk evaluation criteria of the financial institution. Small time finance companies may facilitate a hire purchase of an old vehicle with a considerable down/pre payment to compensate the risks.

[harshansenadhir]

afaik when come to full settlement loans are cheaper than leasing.

If you can settle the balance capital outstanding of the loan, yes it can consider as cheap but otherwise there cannot be a generalization. It all depends on the agreed Early settlement ratio you agreed with the bank/finance company.

[harshansenadhir]

I don't know if the following will still be valid from tmrw (because there were some changes outlined in the budget) but the problem is that VAT has to be charged on the lease installment and if you are an individual you can't claim that VAT. So for an individual a loan is usually cheaper. However people who can't get a loan big enough to buy the car (e.g. if salary is too low) then they go for lease.

that is the explanation I got from few places when I was looking out for a loan/lease a few months ago. and there was no difference (at least no significant difference) in the interest rates between loan/lease from the same provider.

True and what will be difference from tomorrow is the VAT ratio for certain vehicle categories. For an example, as per the previous taxation structure, the VAT for a Car was 20%, where as the Finance company or Bank can re-claim 12% from government in return, so the balance 8% was usually added to the capital (lease amount let's say) and distributed across the instalments. As per the new tax structure, certain vehicles has been given a exception and the rest is 12% across the board. So, lessees will not bear an additional VAT portion within the capital/lease amount they obtain. Even for organizations, whom can claim VAT, this will be a relief as they only can claim up to 12% of VAT.

[Reckless]

Want to know why you are leasing vehicle’s it cheaper to take vehicle loan. I was under the impression that loans were cheaper than leasing.

Plus when you get a loan the vehicle will be under your name not the banks.

[harshansenadhir]

Plus when you get a loan the vehicle will be under your name not the banks.

keeping a vehicle under your name is not handy all the time. Remember, income tax people out there watching for those who register vehicles under their names, that's one of the reasons for some people who can afford a vehi without a leasing too consider that as a safe route in owning a vehicle.

[Sylvi]

Members,

I have had leases from LOLC for more than 20 years they are OK with me.

I managed to get a lease from a leading bank which is called the number one bank in Srilanka after more than ten visits to the branch office final day I was fed up and contacted M/S, ######## as they had a add to say that they will give a lease yesterday 31st March Daily News Papers they said come with your 3 bank statements and prove your assets they will give me in 3 hours. I went to my bank branch in a angry mood for long delay in arranging a lease wanted back the Invoice from the Company which new Vehicle was issued to me produced them the paper add informing C/F will give in three hours they finally gave me the delivery order in two hours.

I will be getting my new Vehicle Maruti from A*W 6th April. This is Srilanka Banks treating for long standing customers.

Sylvi Wijesinghe.