Why
Since 1998, when I started the first website for our business of numismatics (coins), I have enjoyed using the internet for information, and also ensuring that our company provides good useful information and advice, free of charge, to potential consumers, whether buying or selling coins, or jewellery.
The first car we leased was a Renault Espace from 1994 to 1995. There were two main reasons for this, one was to conserve capital, the other was pure cost. The leasing deal was cheaper and better than owning a new vehicle.

How Did We Discover Leasing?
About a year before our Espace, one of our neighbours commented that one of the cars they were driving, a Fiat Uno, only cost them £37 per month. We cannot recall the retail price at the time, but £37 per month sounded a ridiculously cheap bargain. It wasn't until about a year later that we got round to asking how they got their great deal. They gave us the name of a local car leasing company, and sounded surprised that we didn't lease, and had not heard about the deals available.

Maths of Leasing
By the time we asked, the Uno deal was ancient history, our local man Steve said that his company had supplied several hundred of them to locals and more distant customers.
The new price on the Uno had risen to around the hundred pound mark, which apparently was fair value, the "proper price". Being naturally curious about these things, we asked how come the original deals had been so good. Steve explained that the banks and finance houses who finance or fund the vehicles use employ actuaries to calculate future retained vehicle values, taking into account age and mileage. These are then fed into spreadsheets together with the cost price, interest rate costs, and many other variables. From this, the funding company calculates the monthly rental or hire costs to meet its profit targets.
Manufacturers give various discount levels to major buyers, and dealers may have over-committed to volumes thereby having surplus vehicles to sell at a marginal loss in order to qualify for volume discounts on their entire period's purchases. Other factors affecting price may be guaranteed residual value levels at 2 or 3 year age levels, dependent on mileage. These may be designed to discourage the new cars being flooded onto the market too soon and depressing retail prices. Some of the discounts may be to keep production flowing ahead of anticipated or announced new models, or may be to stimulate initial sales of a new model.
Banks and other financial companies purchasing cars to lease can often charge full depreciation on their assets (stock) and obtain early tax relief. These savings are included in the actuarial calculations, and work through to the final price, saving the consumer money.
Whatever the reasons are mainly irrelevant to the consumer who simply wants to ensure the use of a decent vehicle at an economical cost. The combination of a big discount with a forecast or guaranteed high residual value can produce freakish results, and produce deals which are greatly in the favour of the consumer.

Our Leasing History
As we mentioned, we have been leasing since 1994, so have accumulated a dozen years of experience. We believe this qualifies us to share our insights with others. Although we believe that leasing will not suit everybody, it is well worth looking at.

Best Deals
Just a few of the deals we have enjoyed or missed.

• Fiat Uno £37 per month.
• Chrysler Crossfire £199 per month.
  In about 2003, a fax arrive from our friendly local leasing company offering a Chrysler Crossfire at £199 per month on a 12 month deal. We initially rejected it having seen a less than flattering review of the Crossfire. A few weeks later, having checked "What Car" reports on it, we decided that, although it may be a poor relation to a Mercedes SLK, it was such a good deal that we ought to have one, if not two! We missed the availability on the deal be a few days, and it returned to normal sensible price levels of about £300 to £400 per month on a three year deal.
• Mazda RX8 230, £275 per month
  When we first looked at the RX8, What Car magazine gave it 5 out of 5 stars, and a very good review. We took a test drive, and decided it would be a great car to drive. When we check leasing deals, the cost was about £360 per month on a three year deal. This was an OK price, and definitely slightly more advantageous than buying, but we decided to hold off, and told Gary and Tony, our local leasing contacts of our decision. Perhaps a year later, we got a call to say the Mazda RX8s were now available on much cheaper leasing deals. We ended up paying only £275 per month on a two year deal. We saved over £90 per month, and drive a newer car.
• Saab 9.3 for £189 per month.
  While we were thinking about this, and getting round to arranging a test drive, the offers finished. This was financially one of the best deals we have seen recently.
• BMW 730D for £399 per month.
  This is one of the best deals around, and we currently have one on order for delivery in February 2006, on a two year deal.

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