Leasing v buying

[Glossopswift]

I am looking to trade in my car and buy a Citroen Picasso or similar, around 3-4 years old. Someone has suggested that rather than spending 4 years paying off something that is worth about �500 when you've finally finished the payments, why not lease hire and get a newer one that I can change every few years. I have been told that the lease hire company pay for the maintenance and tax, all I pay is the monthly lease cost and insurance. How correct is this information, how much more expensive is it, and is it worth going down this road? I'm rubbish at cars and get bored very quickly just looking....

[Oneeyedvic]

Leasing (or contract hire) is quite popular. First of all though, you must (usually) have an A1 credit raing to get one.

Also, most contract hire is done on new /nearly new. You would be hard pushed to find a company who will give you a lease with maintenance on a 4 year old citroen.

Most contract hire would be on a much newer car, so you will find that the payments are higher.

Contract hire is useful for businesses where they are doing a high mileage and can't afford to have cars off the road for a period. I personally wouldn't recommend it for a consumer.

[Glossopswift]

Cheers, Vic. I had a scout around t�internet after I posted and I�m glad that your answer supports what I thought.