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Leasing Car? - CAR ADVICE PLEASE.
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The fuel pump on my trusty old Ford Focus has stopped working after 17 years of service. Going to cost £700+ to replace, the exhaust pipe fell off last year, the AC is broken and the speedometer randomly drops out from time to time. With all this taken in to account I have decided its time for a new car. I'm not really a car person and want to get something sorted sharpish. I'll be looking at getting a work van next year, so need something to tie me over before then. I have been looking at 12 month leases and wonder if anyone has any experience with these? The other option would be to buy a cheapish car that I would sell on.
Thanks in advance sports fans.
Thanks in advance sports fans.
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What mileage do you do and how often do you drive the car?0
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10k, my missus uses it for work three or four times a week. The car gets used most days for one thing or another.hoof_it_up_to_benty said:What mileage do you do and how often do you drive the car?
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Cheapest leases seem to be for 6k mileage. What size car are you looking for?
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I usually drive up to the isle of Lewis to visit my dad once a year, I'm flying this time so can save 1.5k of mileage. Will be looking at getting a hatchback, nothing too snazzy.hoof_it_up_to_benty said:Cheapest leases seem to be for 6k mileage. What size car are you looking for?
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Was without a car for a bit but given that I do 1500-2000 miles a month the good lease deals were thin on the ground. I rented a van for a bit(£40 per weekend) to tide me over and decided against a lease in the end.PopIcon said:
I usually drive up to the isle of Lewis to visit my dad once a year, I'm flying this time so can save 1.5k of mileage. Will be looking at getting a hatchback, nothing too snazzy.hoof_it_up_to_benty said:Cheapest leases seem to be for 6k mileage. What size car are you looking for?
Managed to rent a car for ten days recently for £150 with unlimited mileage - did over 2000 miles driving up to John O Groats and the Highlands.
Plenty of deals around but important to make sure they meet your needs.0 -
My other half has got a Citroen C1. Does about 2,000 miles a year at most. Pays £100 a month on a lease with a £3k final payment if she wants to keep it at the end. Does the job ...0
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Some very good deals about if you only do low mileage._MrDick said:My other half has got a Citroen C1. Does about 2,000 miles a year at most. Pays £100 a month on a lease with a £3k final payment if she wants to keep it at the end. Does the job ...1 -
Thats the catch, they lure you with attractive monthly prices but based on unrealistic annual milages, as soon as you exceed that the cost escalates !! If you only do 2,000 miles a year it will be just sitting there unused most of the time, so whats the point paying for a brand new car on the monthly if you hardly use it?hoof_it_up_to_benty said:
Some very good deals about if you only do low mileage._MrDick said:My other half has got a Citroen C1. Does about 2,000 miles a year at most. Pays £100 a month on a lease with a £3k final payment if she wants to keep it at the end. Does the job ...2 -
When you lease for a year you are effectively paying for:
1. Depreciation of the vehicle over a year
2. The interest on the depreciation
3. The interest on the initial value of the vehicle for a year
If you buying you are paying for:
1. Depreciation of the vehicle over a year
2. Interest on any finance to purchase the car
Leasing is attractive because it avoids capital outlay and capital repayments so your short term outlay is lower but long-term costs are greater compared to buying on finance. If using finance to buy, and you want a new car frequently, leasing makes more sense than borrowing because it makes little sense to borrow to acquire an asset that is worth half what you borrowed by time the loan is paid off. Either pay cash or lease and invest the extra outlay you would otherwise be paying on loan repayments.
Cheapest option is buying for cash and keeping until too expensive to maintain.
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Dippenhall said:When you lease for a year you are effectively paying for:
1. Depreciation of the vehicle over a year
2. The interest on the depreciation
3. The interest on the initial value of the vehicle for a year
If you buying you are paying for:
1. Depreciation of the vehicle over a year
2. Interest on any finance to purchase the car
Leasing is attractive because it avoids capital outlay and capital repayments so your short term outlay is lower but long-term costs are greater compared to buying on finance. If using finance to buy, and you want a new car frequently, leasing makes more sense than borrowing because it makes little sense to borrow to acquire an asset that is worth half what you borrowed by time the loan is paid off. Either pay cash or lease and invest the extra outlay you would otherwise be paying on loan repayments.
Cheapest option is buying for cash and keeping until too expensive to maintain.
Good advice but I would add that the cheapest option is to by a pre-reg/ex-demo/12 month old car for cash and keeping it until it starts to be expensive to maintain.2 - Sponsored links:
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Good, I did that today :-)bobmunro said:Dippenhall said:When you lease for a year you are effectively paying for:
1. Depreciation of the vehicle over a year
2. The interest on the depreciation
3. The interest on the initial value of the vehicle for a year
If you buying you are paying for:
1. Depreciation of the vehicle over a year
2. Interest on any finance to purchase the car
Leasing is attractive because it avoids capital outlay and capital repayments so your short term outlay is lower but long-term costs are greater compared to buying on finance. If using finance to buy, and you want a new car frequently, leasing makes more sense than borrowing because it makes little sense to borrow to acquire an asset that is worth half what you borrowed by time the loan is paid off. Either pay cash or lease and invest the extra outlay you would otherwise be paying on loan repayments.
Cheapest option is buying for cash and keeping until too expensive to maintain.
Good advice but I would add that the cheapest option is to by a pre-reg/ex-demo/12 month old car for cash and keeping it until it starts to be expensive to maintain.0 -
If you happen to have 15-20k laying around yes. Most don't.bobmunro said:Dippenhall said:When you lease for a year you are effectively paying for:
1. Depreciation of the vehicle over a year
2. The interest on the depreciation
3. The interest on the initial value of the vehicle for a year
If you buying you are paying for:
1. Depreciation of the vehicle over a year
2. Interest on any finance to purchase the car
Leasing is attractive because it avoids capital outlay and capital repayments so your short term outlay is lower but long-term costs are greater compared to buying on finance. If using finance to buy, and you want a new car frequently, leasing makes more sense than borrowing because it makes little sense to borrow to acquire an asset that is worth half what you borrowed by time the loan is paid off. Either pay cash or lease and invest the extra outlay you would otherwise be paying on loan repayments.
Cheapest option is buying for cash and keeping until too expensive to maintain.
Good advice but I would add that the cheapest option is to by a pre-reg/ex-demo/12 month old car for cash and keeping it until it starts to be expensive to maintain.0 -
I did exactly that and yes you are right most people don’t have 20k spare but if you look at the amount of lease cars on the the road, (especially high end German), there isn’t a shortage of people finding the monthly rent money on new cars.ChiAddick said:
If you happen to have 15-20k laying around yes. Most don't.bobmunro said:Dippenhall said:When you lease for a year you are effectively paying for:
1. Depreciation of the vehicle over a year
2. The interest on the depreciation
3. The interest on the initial value of the vehicle for a year
If you buying you are paying for:
1. Depreciation of the vehicle over a year
2. Interest on any finance to purchase the car
Leasing is attractive because it avoids capital outlay and capital repayments so your short term outlay is lower but long-term costs are greater compared to buying on finance. If using finance to buy, and you want a new car frequently, leasing makes more sense than borrowing because it makes little sense to borrow to acquire an asset that is worth half what you borrowed by time the loan is paid off. Either pay cash or lease and invest the extra outlay you would otherwise be paying on loan repayments.
Cheapest option is buying for cash and keeping until too expensive to maintain.
Good advice but I would add that the cheapest option is to by a pre-reg/ex-demo/12 month old car for cash and keeping it until it starts to be expensive to maintain.
It all seems a bit of a salesman’s dream to me, “you ain’t got the money, don’t worry. I can get you latest A4 for a price you can afford.”
Once you start leasing it’s never ending paying out and probably increasing paying out.
I think Poplcon has the answer in his original post when he mentions a 17 year old car. It might not you want but cut your cloth according to your means.
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Buy a 12 year old version of your 17 year old car and you might get 5 more years out of it. And if it breaks, you won't have lost too much.2
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I like to drive a decent car & dont mind paying £250pm for the privilege. Last 2 have been on 3 years PCP with Jaguar. Usually buy something less than 12 months old & pay extra for servicing & extended warranty. Means the only costs to the monthly payments is fuel & tyres.
My 3 years is up in November & looking at my options. Been driving diesels for the past 6 years & would go electric but not convinced yet of the amount & whereabouts of charging points. Hate to get stuck somewhere or have to spend 30 mins in a service station just waiting to get back on the road.
May look at leasing this time around. Usually do around 10k miles pa.0 -
Same difference, is it not? If you don’t want to pay the bubble you hand back the carChiAddick said:
Thats not a lease. Thats PCP._MrDick said:My other half has got a Citroen C1. Does about 2,000 miles a year at most. Pays £100 a month on a lease with a £3k final payment if she wants to keep it at the end. Does the job ...0 -
There can be good lease deals, but generally buying even with a loan is more cost effective if you buy the car initially for a good price, that’s key.
my wife’s last car before current one; 9 month old A3 s-line. Bought for just under £18k and sold for £15k 33 months later, works out at under £90 a month.
wifes current car, mini clubman, 4 months old paid £18.5k (was £10k more new) would expect that to cost about £80 a month for 2-3 years.
Had a 2.5 year old cayenne that I kept for 2 years and got back not much less than I paid.
@golfaddick likewise electric interests me, but ranges need to improve before I do. Tesla Model 3 or S is getting there.2 -
If you have money you're more likely to get a good deal.Rob7Lee said:There can be good lease deals, but generally buying even with a loan is more cost effective if you buy the car initially for a good price, that’s key.
my wife’s last car before current one; 9 month old A3 s-line. Bought for just under £18k and sold for £15k 33 months later, works out at under £90 a month.
wifes current car, mini clubman, 4 months old paid £18.5k (was £10k more new) would expect that to cost about £80 a month for 2-3 years.
Had a 2.5 year old cayenne that I kept for 2 years and got back not much less than I paid.
@golfaddick likewise electric interests me, but ranges need to improve before I do. Tesla Model 3 or S is getting there.1 -
Yes & no. Dealers often make more from finance than they do on the cars margin,hoof_it_up_to_benty said:
If you have money you're more likely to get a good deal.Rob7Lee said:There can be good lease deals, but generally buying even with a loan is more cost effective if you buy the car initially for a good price, that’s key.
my wife’s last car before current one; 9 month old A3 s-line. Bought for just under £18k and sold for £15k 33 months later, works out at under £90 a month.
wifes current car, mini clubman, 4 months old paid £18.5k (was £10k more new) would expect that to cost about £80 a month for 2-3 years.
Had a 2.5 year old cayenne that I kept for 2 years and got back not much less than I paid.
@golfaddick likewise electric interests me, but ranges need to improve before I do. Tesla Model 3 or S is getting there.0 - Sponsored links:
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Pcp you are paying interest on the loan against the car. Unless you get 0%apr of course. Leasing (PCH) there is never any form on balloon payment. You just pay a fixed monthly payment and hand the car back at the end._MrDick said:
Same difference, is it not? If you don’t want to pay the bubble you hand back the carChiAddick said:
Thats not a lease. Thats PCP._MrDick said:My other half has got a Citroen C1. Does about 2,000 miles a year at most. Pays £100 a month on a lease with a £3k final payment if she wants to keep it at the end. Does the job ...0 -
I agree that it all depends on the car, the buying price etc. Cash is king with car buying.Rob7Lee said:There can be good lease deals, but generally buying even with a loan is more cost effective if you buy the car initially for a good price, that’s key.
my wife’s last car before current one; 9 month old A3 s-line. Bought for just under £18k and sold for £15k 33 months later, works out at under £90 a month.
wifes current car, mini clubman, 4 months old paid £18.5k (was £10k more new) would expect that to cost about £80 a month for 2-3 years.
Had a 2.5 year old cayenne that I kept for 2 years and got back not much less than I paid.
@golfaddick likewise electric interests me, but ranges need to improve before I do. Tesla Model 3 or S is getting there.
Leasing is most of the time more cost effective than PCP.
Its horses for courses.0 -
If you have access to cash you're more likely to get a better finance deal - some dealers offer very poor deals to those who can't afford to shop around.Rob7Lee said:
Yes & no. Dealers often make more from finance than they do on the cars margin,hoof_it_up_to_benty said:
If you have money you're more likely to get a good deal.Rob7Lee said:There can be good lease deals, but generally buying even with a loan is more cost effective if you buy the car initially for a good price, that’s key.
my wife’s last car before current one; 9 month old A3 s-line. Bought for just under £18k and sold for £15k 33 months later, works out at under £90 a month.
wifes current car, mini clubman, 4 months old paid £18.5k (was £10k more new) would expect that to cost about £80 a month for 2-3 years.
Had a 2.5 year old cayenne that I kept for 2 years and got back not much less than I paid.
@golfaddick likewise electric interests me, but ranges need to improve before I do. Tesla Model 3 or S is getting there.0 -
PCP or leasing, whatever, why not just buy a car?
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Apparently people like paying to not own stuff, don't get it myself.LargeAddick said:PCP or leasing, whatever, why not just buy a car?1 -
Stu_of_Kunming said:
Apparently people like paying to not own stuff, don't get it myself.LargeAddick said:PCP or leasing, whatever, why not just buy a car?
What I don't get is that people with money often drive older, lower status vehicles because they don't care what other people think of them but people up to their eyeballs in debt do the opposite because being perceived as wealthy is the important thing.9 -
Maybe alright for some.....cant just lay my hands on £30k sadly.LargeAddick said:PCP or leasing, whatever, why not just buy a car?1 -
This 100%SantaClaus said:
What I don't get is that people with money often drive older, lower status vehicles because they don't care what other people think of them but people up to their eyeballs in debt do the opposite because being perceived as wealthy is the important thing.
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You need a IFA.golfaddick said:
Maybe alright for some.....cant just lay my hands on £30k sadly.LargeAddick said:PCP or leasing, whatever, why not just buy a car?5 -
I wouldn't say this is advice, but I currently have a 3 year lease (expires in March)
+ Short term low costs (£200 per month)
+Can change car at the end of it
-Although low costs , my one I cant buy outright which I really regret
-I have a couple of scratches so ultimately I will need to get these fixed and hope they don't charge me for anything on top
-Going over the lease allowance, I am very close to this currently have 4500 left (12k per annum) , I work at home now so might just about do it but have to avoid long journeys if possible which is tough eg. I went to blackpool last month with mates and I had to drive which I don't mind but for the mileage instant + 700 miles
If its a short term fix I would say its good if you can keep it in good condition, eg. no small bumps and you know your mileage and if anything get more than, I know if I go over I am going to be screwed over big time when I have to give it back.
Pretty annoying I have to give it back and no option to buy as I like it and would have happily paid out the remainder if it was finance or a lease to buy scheme
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