This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/money/2017/sep/19/car-leasing
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Car leasing: how one petrolhead has become 'more wary' | Car leasing: how one petrolhead has become 'more wary' |
| (about 1 month later) | |
| James Ahari knows about cars after several years in the insurance industry, much of it spent handling motor policy claims. He is also a self-confessed petrolhead. | James Ahari knows about cars after several years in the insurance industry, much of it spent handling motor policy claims. He is also a self-confessed petrolhead. |
| But he says anyone can track down the best deals on car leasing websites and, like him, spurn owning a car in favour of leasing one. | But he says anyone can track down the best deals on car leasing websites and, like him, spurn owning a car in favour of leasing one. |
| Ahari, who lives in East Sussex with his wife and 13-month-old daughter, has three vehicles on personal contract purchase, or PCP. These contracts offer cars for small monthly payments. At the end of the contract, customers have the option to make a “balloon payment” or hand back the car. | Ahari, who lives in East Sussex with his wife and 13-month-old daughter, has three vehicles on personal contract purchase, or PCP. These contracts offer cars for small monthly payments. At the end of the contract, customers have the option to make a “balloon payment” or hand back the car. |
| Ahari’s cars are: a Ford Focus for the family; a Ford Focus RS, which he describes as a “pumped-up, hyper hatch” that he drives for fun; and a Transit van for his antiques delivery business. He also owns a secondhand Transit and a classic car. | Ahari’s cars are: a Ford Focus for the family; a Ford Focus RS, which he describes as a “pumped-up, hyper hatch” that he drives for fun; and a Transit van for his antiques delivery business. He also owns a secondhand Transit and a classic car. |
| He said the attraction of buying a family car on PCP was obvious when he found one with a list price of £22,000 that only needed a £450 deposit and payments of £151 a month – a cost of £5,886 for three years. | He said the attraction of buying a family car on PCP was obvious when he found one with a list price of £22,000 that only needed a £450 deposit and payments of £151 a month – a cost of £5,886 for three years. |
| Part of this sum will be an interest charge of between 5% and 10%, but the risk of a tumble in secondhand car values falls on the leasing company and not the customer. | Part of this sum will be an interest charge of between 5% and 10%, but the risk of a tumble in secondhand car values falls on the leasing company and not the customer. |
| “You also don’t have to worry about servicing the car because they contact you to book it in. It’s part of the deal,” he said. | “You also don’t have to worry about servicing the car because they contact you to book it in. It’s part of the deal,” he said. |
| But he discovered one of the pitfalls recently after the van came to the end of its plan. He received a £900 bill for minor repairs after the leasing firm said the damage was in breach of guidelines on wear and tear. | But he discovered one of the pitfalls recently after the van came to the end of its plan. He received a £900 bill for minor repairs after the leasing firm said the damage was in breach of guidelines on wear and tear. |
| Ahari said: “An assessor came and told me the van was in good condition and two dents to the side were ‘well within usual tolerances’.” | Ahari said: “An assessor came and told me the van was in good condition and two dents to the side were ‘well within usual tolerances’.” |
| The van was taken away and then he was surprised by a bill for four dents and a cracked wing mirror. He has appealed, arguing that he would have delayed the van’s return and made the repairs himself, if the bill had been given to him by the assessor. | The van was taken away and then he was surprised by a bill for four dents and a cracked wing mirror. He has appealed, arguing that he would have delayed the van’s return and made the repairs himself, if the bill had been given to him by the assessor. |
| “The first time I handed back a car – a Ford Fiesta – two assessors carried out the examination and told me the alloy wheels needed repairs costing £42 a wheel. It was clear, I agreed the sums and I signed on the spot for the car to be taken away. | “The first time I handed back a car – a Ford Fiesta – two assessors carried out the examination and told me the alloy wheels needed repairs costing £42 a wheel. It was clear, I agreed the sums and I signed on the spot for the car to be taken away. |
| “This time was very different. It has made me more wary. Interestingly, when I rang to ask why they hadn’t got back to me, the leasing company said it was facing a backlog of complaints,” he said. | “This time was very different. It has made me more wary. Interestingly, when I rang to ask why they hadn’t got back to me, the leasing company said it was facing a backlog of complaints,” he said. |
| Motoring | Motoring |
| Britain's debt timebomb | Britain's debt timebomb |
| Borrowing & debt | Borrowing & debt |
| Automotive industry | Automotive industry |
| Consumer affairs | Consumer affairs |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |