Forfour Personal lease is cheaper than Fortwo

[ColSmart]

LEASING....
One thing worth considering if you are thinking about personal leasing from Smart, is that the Forfour over a three year lease (no option to buy) is actually a better deal that the cheaper Fortwo.

Initial payment is lower, hence the overall deal is cheaper, I assume due to the competition of small four seaters available.
The Fotwo being a dearer lease, due to not so many two seater cars competitors.

From Smart website.....

Fortwo......
Advance payment £2011
36 months at £139

Total is £7015,Thats a £2338 loss per year, not so good.

Forfour....which is the dearer car, yet cheaper with this deal.
Advance payment £338
36 months at £149

Total is £5702, Thats a £1900 loss per year, which is a bit more acceptable.

So have a look at Smart deals before choosing the car you want, and your payment method.

BUYING....
If buying a new Forfour or Fortwo, irrespective of interest on a loan or buying outright, you are going to lose nearly half the cost of the car over three years, so you can say you are going to lose around £5000 minimum, so leasing could be the better option.

It seems to be a lot more popular nowadays.

[10:45PM]

They're doing it because the fortwo will pretty much sell itself , the forfour needs a help into the market

Looks like they've put two spare fronts seats in the boot of the forfour

[Ocracoke]

Just been on the Smart UK site for a Personal Lease deal for both at the Passon level and I've come up with different figures

ForFour: £149 advance + (47 months x £149) = £7152
ForTwo £1816 advance + (35 months x £139) = £6681

Looks odd offering two different schemes but the intention is (as far as I know) to push the ForFour more, so they will make a *on the face of it* better deal than the ForTwo.

Still would just like to own the car. These deals have a "no ownership" tag line on the end of it. Guess I'll be waiting at least three years for a sale off glut.

[ColSmart]

Looks like the leasing deals keep changing as my figures were when the car was launched, which was only a little while ago.

As you say, there will be a lot of leased cars 3 years down the line where the drivers were never going to be owners, so drive with a bit less care and attention, to that if the owned it. Though they should have been serviced.

[10:45PM]

BUYING....
If buying a new Forfour or Fortwo, irrespective of interest on a loan or buying outright, you are going to lose nearly half the cost of the car over three years, so you can say you are going to lose around £5000 minimum, so leasing could be the better option.

No it's not, If you've got the capital to put up to buy, then buying IS the better option , on either car you've just proved it.

I'd rather lose 5000, than 7015 or 5702

[ColSmart]

Depends on ones financial state I just need the cash.......

[Thrumbleux]

No it's not, If you've got the capital to put up to buy, then buying IS the better option , on either car you've just proved it.

I'd rather lose 5000, than 7015 or 5702

If you have the capital...or no other use for it.
These deals are overspills from business leasing where they make more sense precisely because they tie up no capital. That, and take a sixth off the costs when you claim back the VAT. If the banks were offering decent interest on savings there would be more appeal. But then mortgages would be through the roof.
The way cars are going though, a three year old car is a liability (back to the dealer for everything as coding is now becoming such a prominent part of replacing/repairing) such that no one will want to own one so leasing has appeal. But as the lease cost is the depreciation then the lease cost must rise as it becomes nearer to the whole price when the car is next to worthless at three/four years old. I predict a bus pass....

[10:45PM]

Agree on a 90% basis http://smartmaniacs.co.uk/core//imag...ndard/grin.gif

[ColSmart]

Mind you personal leasing is not straight forward, they do make credit checks, and also check you financial status regarding your work income, so they can expect you to meet all monthly payments OK during the hire period.

If you are young say under 26, they might require a guarantor who will pay up if you default on monthly payments (for example my young neice has taken a 3 year Personal leasing on a new Aygo and her parents had to be the guarantor, even though she is an airline stewardess, which to the hire company is a risky profession ).


Even with such checks, they will repossess the car very quickly if you default for a few months. They make sure they cover all bases


Mind you buying on HP monthly payments is just as risky. You have been warned.

By the way if buying on HP monthly payments with the interest, and intend to pay it off quickly, then make sure the finance company has a policy of not hitting you with the full loan interest. I got caught out with that once, and paid back early and got hit with the full amount plus had to pay the full interest ...DOH!