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Buying, hiring, leasing, lease-hiring, hire-leasing, ??????

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Buying, hiring, leasing, lease-hiring, hire-leasing, ??????

Postby Karst » Fri Mar 23, 2018 11:51 pm

Hi Folks,

Please help if you can......

I have posted about being scammed with a second hand Transit.... There is now a hope that my bank will do a chargeback for the cost of the van itself, I will know by Thursday.

Once I get that money back (£3,500), I will have to come to a decision. Seek out another second hand van, or lease, hire, or whatever it is.

I have one company telling me the best thing is the lease where you pay a monthly amount then the "bubble" at the end, and in fact you end up owning the van. They insist I could sell the van at the end, and pay the bubble plus have a small profit. Then I could just start the whole thing again. They say most of their customers choose this option.

I have another company telling me that is just not the case - there is no guarantee that I could sell it at a good price at the end and I risk getting into financial trouble because of that. They say most of their customers just do long term hire because of that. So at the end of the period, they just hand the van back and start over with another van.

Do any of you have any experience or advice about this? I do not know anything about the reality of these options, just the theory. Would I, by chance, generally be better off just buying an older second hand van outright?

I'm sorry if |I've missed threads about this, please do link me to them if you know them. I'm just so frazzled by this con I've got. I have spent almost a whole week of days emailing, phoning, taking the van to mechanics, composing and writing letters, getting stressed, managing stress,....... I just need to find out people's different experiences......

Thank you Folks,

I will let yous knows how things transpire...... :cry: :twisted: :twisted: :cry: :twisted: :cry:

Karst.
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby joinerman » Sat Mar 24, 2018 7:30 pm

Buy one outright, no worries about future payments & that bubble at the end, in a few months the newness of your van will have worn off & you certainly won't want to pay a lump sum at the end for a van that will be worth less than your final payment, buy outright & you know exactly where you stand.
By the way the garage you got your van from only has a handful of vans there know, it used to be full of them.
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Karst » Sat Mar 24, 2018 8:34 pm

Thank you Joinerman.

I have also had a chat with a self-employed friend. He likes the hire-contract best. There seems to be a point with this - ultimately us traders always effectively just hire our vans.
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Punto443 » Sat Mar 24, 2018 10:17 pm

Be careful, I had a workmate that when handing the vehicle back was presented with a huge bill for damages! Every stonechip and light scratch was detailed and charged!

It ended up cheaper for him to buy the van and resell, than to pay the bill :roll:





But then, some don’t bother with the charges? So make sure you know what’s expected when returning it.
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby ake » Sun Mar 25, 2018 4:04 pm

Contract hire is better than lease, but you will never own it

Lease with balloon payment can be dodgy

Buying it outright will always be the simplest way to do it
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ake
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Karst » Sun Mar 25, 2018 8:33 pm

Thank you Punto and Ake :D

That's good advice to find out about the terms at hand-back for contract hire.....

Leasing with a balloon can be dodgy,................ It is starting to seem that way.

Thing is, if you haven't got £15,000 to £25,000 hanging around to buy a very good or brand new van, by the time you've paid for its upkeep, you pay the same as leasing or contract hire per year anyway, right?

I mean for traders, it's always in effect a hire. You only need to think in terms of owning it if you've got another reason to keep it forever.

I'm just trying to make a rational decision about how much I pay out per year, including taking depreciation into account, on having a vehicle I can use for my trade.
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby man le-mans » Sun Mar 25, 2018 9:06 pm

The cheapest way to drive a vehicle is to buy it either new or used. Hire or lease theses companies need to make money like you working for yourself
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Karst » Sun Mar 25, 2018 10:06 pm

man le-mans wrote:The cheapest way to drive a vehicle is to buy it either new or used. Hire or lease theses companies need to make money like you working for yourself


Even considering the cost of maintenance of it and the time it spends off the road getting fixed?
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby bigjohnthomas » Sun Mar 25, 2018 11:14 pm

Yeah bloody maintenance :x my big van cost me an oli change and new brake pads last year almost 70 turnips :shock:
And the custom went to ford for a 250 turnip service stamp i n book
So that's 320 turnips for 2 vans for a year
Buggeration :o
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Karst » Sun Mar 25, 2018 11:29 pm

bigjohnthomas wrote:Yeah bloody maintenance :x my big van cost me an oli change and new brake pads last year almost 70 turnips :shock:
And the custom went to ford for a 250 turnip service stamp i n book
So that's 320 turnips for 2 vans for a year
Buggeration :o
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But how much did they cost upfront, and what will you sell them for in the end? Plus all other extra expenses while you have it?
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby bigjohnthomas » Mon Mar 26, 2018 12:00 am

Now then the old mk7 was around 5 thousand turnips a few years ago
When its end of life and i sell.it I would think I should get around five thousand turnips for it as its now a fantastic mobile dogs arsehole cleaner
And the custom I'll run till its fooked and near 200k then get another 3year old one in another 4 years or so
That was 15 big turnips with the vat but we can only guess what it will be worth it 4 years when its battered to fook with high miles
Turnips may not even be the accepted currency then :shock:
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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Karst » Mon Mar 26, 2018 12:09 am

bigjohnthomas wrote:Now then the old mk7 was around 5 thousand turnips a few years ago
When its end of life and i sell.it I would think I should get around five thousand turnips for it as its now a fantastic mobile dogs arsehole cleaner
And the custom I'll run till its fooked and near 200k then get another 3year old one in another 4 years or so
That was 15 big turnips with the vat but we can only guess what it will be worth it 4 years when its battered to fook with high miles
Turnips may not even be the accepted currency then :shock:
Bloody eu :x


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Re: Buying, hiring, leasing, lease-hiring, hire-leasing, ???

Postby Mike » Mon Mar 26, 2018 8:14 am

Also remember that your accounting style may affect how you purchase a vehicle.
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