There seem to be some attractive personal lease schemes about. I am either too lazy to do the math, or ignorant of the pitfalls, but am I missing a trick by buying my car, letting it depreciate then stump up more cash for another one?
I only do about 6K miles per annum and that includes a couple of thousand on summer hols in France. I like a nice comfy and fairly rapid family job, nothing cheap and cheerful.
Has anyone out there been energetic enough to do the math and have enough of a Tefal head to know the pitfalls or gains?
Would be interested to know.
|
If you can buy the car at a good discount and can get reasonable finance rates then leasing is seldom absolutely cheaper in terms of total cost. The lease company is always going to take a cut.
PCP is probably a better way to go if you can get a good PCP deal. With a lease the car goes back at the end (unless you choose to buy it), with a PCP if the car is worth more than the guaranteed value (and they pretty much always are by at least £1500+) you can use the equity as a deposit on your next agreement.
|
If you only do 6K per annum I don't see any point in changing your car every few years. A well serviced personally bought car will last you for years, once the initial loan is paid off your running costs will be virtually nothing & you can save the money your saving ready for when you want to buy a newer one.
|
If you only do 6K per annum I don't see any point in changing your car every few years.
Thanks for the reply.
....well, here's the rub. I get bored easily with cars. The longest I ever kept one was 2 years. Most just about last a year. So, under these circumstances, am I going to be better off leasing rather than take that big hit on depreciation in the 1st year of ownership?
|
>>So, under these circumstances,am I going to be better off leasing rather than take that big hit on depreciation in the 1st year of ownership?
No you won't be better off as when you lease a vehicle effectively all your paying is the depreciation on the vehicle over the lease term, interest on the finace and the lease firms profit. Due to the high depreciation level 1 year leases are usually very expensive
You may as well carry on buying unless you can can find one of the occasional good value short term lease deals. A friend of mine got a Renault Megane CC Dci for £169 a month a while back.
|
hmmm, bored with cars - maybe you just haven't found the right one yet ??
Unfortunately for you whether you lease or buy if you change them every 2yrs cars are always going to be costing you a fortune.
Your best chance seems to be finding a car you don't get bored with - good luck !!!
|
hmmm, bored with cars - maybe you just haven't found the right one yet ??
....come to think of it. It's not so much I'm bored with cars, but I just like the thrill of the chase. It's the only real vice I have and it's miles cheaper than chasing women.
|
"it's miles cheaper than chasing women."
-- good point, stick with the cars !!!
|
|
|
|
If you can buy the car at a good discount and can get reasonable finance rates then leasing is seldom absolutely cheaper in terms of total cost. The lease company is always going to take a cut. PCP is probably a better way to go if you can get a good PCP deal. With a lease the car goes back at the end (unless you choose to buy it), with a PCP if the car is worth more than the guaranteed value (and they pretty much always are by at least £1500+) you can use the equity as a deposit on your next agreement.
>>
Absolutely right !
Take initial pain of purchasing outright which will soon go away and then 'enjoy'.
The leasing companies have to take theeir margin so why throw money away.
|
|
Further to my last, try to buy 'nearly new' so you dont have to take the initial depreciation hit.
|
Have a look at these sites: www.lexfreechoice.co.uk and www.contracthireandleasing.com. The first has nearly new and new cars for lease and gives a quote based on all of your details - so you can work out roughly how much it'll cost. The second is just a link to a portal which based on your search criteria will bring back a number of leasing sites.
|
|
|
|
|
