Thinking of getting a lease car on contract

Parisien · 12th July 2006, 22:09

Guys, just wondered if there were any problems/pitfalls re the above, from an insurance perspective, never mind if companies are reluctant, or add on an additional premium, any advice gratefully received.

comanche · 12th July 2006, 22:35

What sort of agreement are you looking at- contract hire, hire purchase etc? The advantages and disadvantages vary depending on whether you're employed, self employed, a limited company and your VAT status.

Parisien · 12th July 2006, 22:43

Oh, apols....first time poster...nerves.......lol ....meant to add in the word "insurance"!!! ie pitfalls/probs getting cover/extra premium as I don't techinally own the car etc....thanx!!

comanche · 12th July 2006, 22:49

I don't know the answer to that I'm afraid but I wouldn't have thought it would be a significant factor. Hopefully someone who knows more about insurance will be along...

craigwalton · 13th July 2006, 10:53

There should be no problem, as long as you let them know when you are getting a quote. For this, though - a broker might be your best bet

JonCris · 13th July 2006, 13:21

Quote:

Originally Posted by Parisien

Guys, just wondered if there were any problems/pitfalls re the above, from an insurance perspective, never mind if companies are reluctant, or add on an additional premium, any advice gratefully received.

Need a bit more info

Are you a registered company, self employed or vat registered?

Parisien · 13th July 2006, 18:36

Private individual............... .

...but its to be used for my job, which I get expenses for running the car etc.

JonCris · 14th July 2006, 12:33

I don't see that this sort of deal would be of any real benefit to you as you won't be able to reclaim the vat which is why many companies use contract hire. Also you will have to ensure the vehicle residual value is realistic & it's in tip top condition when you return it (fair wear & tear is not taken into account when assessing contract end value ask anyone who's had a Mobility leased vehicle). You could find yourself with a very large final payment at the end of the contract.
Straight forward HP would in my opinion be your best bet. Also you have better protection as per the Consumer Credit Act 1974 as a HP agreement is a "Controlled Agreement" under the act

Lusky · 14th July 2006, 13:01

I had a PCP plan and got into difficulties with the mileage restriction. I then transferred to a normal credit agreement to finance the balance but ended up with negative equity due to high mileage.
There are so many deals now from main dealers offering 0% finance on new cars this might be your best bet. Alternatively consider buying an ex demo model. I have bought 2 in the past, you generally get a good bargain and get much more for your money.

ncf355 · 14th July 2006, 13:32

Got mine through my own Ltd Co so cant advise re: best deals and pifalls on personal, but the insurance can be a pain

Had quite a few wouldnt touch it once they knew it was owned by the lease co

Sainsburys and Endsleigh are OK for it though and reasonably priced

ANNALH · 14th July 2006, 13:45

Hi there,

I just hired a car on personal contract hire about 2 months ago. The service was great! I got a few quotes from hire companies and went with the cheapest.

I had my last car (which i owned) stolen a few months ago and didnt want to buy another car with the insurance money as i wanted to pay off debts etc. So i chose to hire a car. I am self-employed and wanted to create a professional image but couldnt afford to buy a brand new car. Hiring is a lot cheaper than finance.

I found that when getting insurance quotes online it was difficult as the systems wouldnt quote if i said the car was not owned by me, so i got the cheapest quote online by saying the car was mine, then rang them up and told them it was actually leased. It didnt make any difference to them. It was my recent insurance claim i had a problem with!!

In the end I went with my existing insurance company as they only charged a little bit extra (£35) to change the policy to the new car for the remainder of the current policy. When my renewal comes through in December i will look for a new provider by the same method as before.

Good luck!

Parisien · 14th July 2006, 14:36

Guys, thanx for the input, nice to hear of your experiences, will do a little more research, concerned though about the car not being in "show room " condition after a 2 yr period, can they make a charge or demand more money?

Will check out my insurance options.....

Anyone used Skyfleet who seem to be the keenest out there?

ANNALH · 14th July 2006, 16:31

The price you pay in the monthly hire charge covers what they lose in value after 2 years. I would also recommend getting gap insurance which covers any shortfall between what the insurance company will pay out in the event of a claim (the market value at the time) and what the hire company value the car at after 2 years (which is what you insure it for).

LinziR · 14th July 2006, 17:13

Hi,
I lease two vehicles both are insured with Privilege. AS per their directive, take the on-line quote (normally v.cheap) then contact them stating that the car is owned and registered by the lease company and they make the amendments to the insurance at no extra cost. I'm 30 and have over 5+NCD so i don't know if that made a difference but i cannot accept from insurance companies that they cannot insure car's that are not owned by the person as so many people these days opt out of buying. If you need any more info or i can help further, let me know.
Linzi

JonCris · 14th July 2006, 17:45

Quote:

Originally Posted by LinziR

Hi,
I lease two vehicles both are insured with Privilege. AS per their directive, take the on-line quote (normally v.cheap) then contact them stating that the car is owned and registered by the lease company and they make the amendments to the insurance at no extra cost. I'm 30 and have over 5+NCD so i don't know if that made a difference but i cannot accept from insurance companies that they cannot insure car's that are not owned by the person as so many people these days opt out of buying. If you need any more info or i can help further, let me know.
Linzi

They can as long as you disclose the benificail owner who has the insurable risk. For example when you insure any car your expected to state if its on HP even though many agreements state your purchasing the right to buy for say £1.00.

The problem arises if your not the registered keeper as some leasing companies insist on having their name on the reg docs. (makes it easier to snatch back I suppose)

The docs are not evidence of ownership but some insurers who don't understand seem to think its a problem

Parisien · 14th July 2006, 19:39

Guys, got word back from my local broker...the only extra, is a change of vehicle premium, £10!

Happy days!

Lusky · 14th July 2006, 23:50

I insured mine through Direct Line without any problem at all.

benjee · 18th July 2006, 18:26

Most Insurance companies will usually do insurance for a private individual as long as the contract hire is for minimum of 12 months and in the policyholders name.

claims32 · 26th July 2006, 15:34

I have my cars on personal lease. Always have had and always will.

Direct Line cover them no problem - schedule states that I am not the registered keeper or legal owner.

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