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Car Leasing

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juckster
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Car Leasing

Post by juckster » 07 Jan 2019, 12:57

I've always bought my cars. But recently, I've been thinking of leasing.

I like the idea of having a new car every 3 years or so.

Does anyone have any thoughts/recommendations on the idea pls ?

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Re: Car Leasing

Post by Zimmerman » 07 Jan 2019, 13:06

Not sure if it’s a full blown lease... but my Mrs Mini is on one of those deals where you pay a monthly amount for 3 years and then we have the option of paying a lump sum to buy it (or walk away).

It’s pretty reasonable - and only needed a small down payment.

undoubtedly you pay a premium for the privilege/convenience. So it’s a case of where you are at financially.

I am tempted to get my next car on a similar scheme. I’m forever coming across colleagues who have got ‘amazing’ deals - but whenever I dip my toe in the water, I never seem to see anything remotely in that ballpark.

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Re: Car Leasing

Post by Zimmerman » 07 Jan 2019, 13:15

my last 4-5 cars have all cost me £9-15k to buy outright and have tended to cost £2k pa in depreciation.

So I use that figure as my benchmark for value.

The cars have been relatively new (VW, BMW or Audi) and repairs have tended to be minimal.

A leased car costing £300pm os obviously cost almost double that. So it’s whether or not you can stomach that sort of hit for convenience/privilege.

Also depends on the market your are shopping in too... ie a new Nissan presumably wouldn’t cost the same as a BMW or Mercedes.

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Re: Car Leasing

Post by Darbyand » 07 Jan 2019, 13:31

Zim, how did you finance the £15k purchases?

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Re: Car Leasing

Post by Zimmerman » 07 Jan 2019, 13:36

I’ve managed to buy them outright (so no additional costs on that respect).

Although I think borrowing money is very cheap at the moment (and plenty of zero percent credit cards too... but you need to be careful when going down this route).

You can in theory get a card with zero percent for purchases and others for zero percent on transfers. With a bit of clever juggling you can free up money doing this. But as mentioned, you need to be in a relative stable position to do this (and have a clear plan to manage them (and pay back during the period)).

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Re: Car Leasing

Post by SUZYKINS » 07 Jan 2019, 13:45

I have leased the first time this year and am quite happy.
Couple of points to note;
1.Shop around, the make and models range dramatically as various lease firms have deals in place with specific manufacturers.
2. Get quotes on various timescales, my lease was going to be 24 months, however I noticed it was cheaper to lease for 18 months (the deposit was £500 less).
I used “freedom” but well worth shopping about.

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Re: Car Leasing

Post by Darbyand » 07 Jan 2019, 15:08

Zimmerman wrote:
07 Jan 2019, 13:36
I’ve managed to buy them outright (so no additional costs on that respect).

Although I think borrowing money is very cheap at the moment
Low mileage dealer approved cars always look attractive but usually have a very high APR. Worth a look if you can get a decent deal of course.

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Re: Car Leasing

Post by murf » 07 Jan 2019, 15:32

Only done it via work and it takes off some stress but they can be controlling over servicing and new tyres etc (have to be virtually bald or Kwik Fit (or whoever they use) won't swap them as the lease company checks up). If companies do it then it can't be too expensive - mind you they'll get a bulk/fleet discount.

All about the pennies I guess but I think you'd be best off buying new or year old if you can afford it.

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Re: Car Leasing

Post by robot » 07 Jan 2019, 17:23

Never done it - comes across to me as the next ppi type scandal!
Save up/ get a normal loan or play about with credit cards but be strict with yourself would be my choices.
Perhaps im getting old but todays genetation just seem interested in the monthly cost and not the big picture.
Luckily I have a wife who wants to waste even less money than me on cars and her last purchase was a one carefull owner 18 year old car with 30000 miles on the clock which has cost virtually nothing since the low purchase price.

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Re: Car Leasing

Post by murf » 07 Jan 2019, 19:28

juckster wrote:
07 Jan 2019, 12:57
I like the idea of having a new car every 3 years or so.
There's the rub - buying a car you can keep for longer than 3 years and save even more money. With a lease you can't, you'll just get tempted to get something more expensive.

I bought a year old car when I jacked my job(/lease car) in. Had it just over 3 years now and it is still going strong (and now not costing me that much in depreciation). Depends on your priorities I guess - I love cars and driving but it just isn't the best use of my limited money.

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Re: Car Leasing

Post by Gaarg » 11 Mar 2019, 22:17

I think that leasing is a great option, especially if you are an entrepreneur and keep your business, then it becomes even more profitable. Another great option is a replacement, I found excellent Acura lease deals Brooklyn offer and replaced it with my Toyota Camry. :D
Last edited by Gaarg on 14 Mar 2019, 23:36, edited 2 times in total.

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Re: Car Leasing

Post by murf » 12 Mar 2019, 15:58

Gaarg wrote:
11 Mar 2019, 22:17
I think that leasing is a great option, especially if you are an entrepreneur and keep your business, then it becomes even more profitable. Another great option is a replacement, I found excellent Acura ILX offer and replaced it with my Toyota Camry. :D
Not a Ford Fusion? :wink:

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Re: Car Leasing

Post by Brightwater » 13 Mar 2019, 10:18

Leasing not for me. I am 2 car lowish mileage. Keep my cars for many years and have cash to buy up front. I am happy with non premium cars. Since my poverty stricken bargain basement days, I have bought 3 new cars, 1 from Carfile, 2 from DriveTheDeal, with massive discounts to minimise initial depreciation.

3 years ago I was looking at buying new, then found my Ford Grand C-Max at a local dealer, 11 months old with 5800 on the clock, agreed a reasonable discount off sticker price.

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Re: Car Leasing

Post by Gaarg » 13 Mar 2019, 23:48

murf wrote:
12 Mar 2019, 15:58
Not a Ford Fusion? :wink:
heh, no.... that was a temporary solution, things are better now :twisted:

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Re: Car Leasing

Post by bluenosey » 14 Mar 2019, 20:16

You need to do a spreadsheet.

a) First, if you buy the car new/newish. Value at start compared to value at end of 3 years to calculate depreciation. Then, factor in servicing, repairs etc - which the lease may give you free - that owning outright may not. You've also got a sizeable capital outlay at the start

b) Then, compare to the lease. The cost of 3 years payments, cost of any excess mileage. No sizeable capital outlay her apart from deposit :) but no ownership at the end :?

Personally, I like to buy a car about 9 months old. Have the balance of the warranty. Then keep for as long as possible and put aside bits of money in the meantime

If you get on the leasing "roundabout", you may never get off but it's all about facts and figures as shown above. There are some good lease deals around and you can haggle too. Watch for things like bumps/scratches with a lease car though as you may have to take it to an authorised dealer which could be costly, not so and so's mate round the corner to patch up.

As usual Martin has it nailed https://www.moneysavingexpert.com/car-f ... r-leasing/

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Re: Car Leasing

Post by unc.si. » 17 Mar 2019, 23:38

Was driving up and down the motorway a lot a couple of years ago so leased a car to replace my LandRover, intending to have one lease car every 3 years for work and one for home (for the wife, a Yaris at the moment) which we just run for 6 or 7 years each time. Got a Merc E220 - very nice car.

Didn't quite work out that way - never ended up selling my land rover (couldn't part with it!) and most of the driving I do now is to the train station 2 or 3 times a month to work in London and to various airports when I'm working away (work at home the rest of the time), so handed it back at the end of the lease and I've gone back to the LandRover. The Merc spent longer in Airport car parks last year than it did being driven!

front alloys were both scuffed and there was a dent in the side (that I hadn't noticed - must have been a car door in a car park). Service was also due (only had one - was supposed to have serviced it twice) and 2 of the tyres were really close to the limit. Thought I was going to get stung by Mercedes on return, but the final invoice came through and it was £260 in total for the damaged wheels and door. No mention of tyres or service.

Anyway - for me, the convenience of having a reliable car always under warranty for the amount of driving that I was doing (which at the time was quite a lot), knowing exactly what the cost was going to be, was worth the extra overall expense (almost certainly cheaper buying a 1 year old one and changing every 3 years, or 4, or 5...).

Now - doesn't work at all. Land Rover isn't depreciating at all - probably going up in value and I don't need to drive up the M1 every day. ie the decision is individual to your own circumstances.

ps 1 - do I get the prize for the most useless piece of advice of the week

ps 2 - I bought the Landy for £17k about 10 years ago. Sold it for £12k last year, but the guy couldn't come to pick it up due to the 'Beast from the East' and I got to drive it for a couple of weeks in the snow and realise how much I loved it! Told him that I wasn't selling any more. Serendipity! Not sure you can beat £5k deprecation in 10 years. If I keep it another 10 it'll probably be worth more than I paid for it :-)

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