Car leasing...A good thing?

Pulsedriver

Pulsedriver

Pulsedriver

Soldato
Joined
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3,105
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UK
Hey folks,

I've been looking into the possibility of leasing, I can't afford to buy a brand new car, but I always like to have fairly decent relatively new cars (have a 2007 model at the moment).

Let's just say, for example, I sell my current car for £8000 private.

I then decide to buy a VW Scirocco on finance for £300 pm (this is just a fictional example) on a 24 month lease.

If I put the £8000 in a savings account, then pay the monthly rentals out of that account,

£8000 / 24 = i'd still be left with £800 at the end of the 24 months.

So for that 2 years, i'd be paying nothing of my 'own' money, and have a new car, obviously id have to give it back after 2 years, but could then move on to a new one...

It's an interesting thought, I know, come 2 years time im left taking a new car on lease WITHOUT the 8k I had the first time round, but even so... Is it STILL cheaper than buying new?
 
Not a good thing at all. You'll be paying £300 a month (fictional) for 24 months and then have nothing to show for it.

Leave the leasing to businesses.

If you can't afford to buy a new car then don't be wasting more money on a lease contract.
 
But you'd have no car at the end and not even enough capital for a deposit on another lease.

The whole entire world will be here soon to show you in many different ways exactly why its a bad idea.
 
If you must have a brand new car
If you have no spare capital
If you can get the right deal

Then sometimes it can make sense.

If you've got £8,000 spare then use that as a deposit and take a 1 year old Scirocco on the best HP deal you can get.

Edit: Or keep your current £8,000 car and spend the money on something worthwhile rather than a depreciating lump of metal ;).
 
But you are not BUYING a Scirocco at all, you are simplying hiring one. And then when the lease ends you've lost that £8000 AND you dont have a car.

Its like hiring a car when you go on Holiday. It isnt yours, it doesnt belong to you and when the hire period ends you dont have it anymore...
 
Financially, it'd be hard for this to make any less sense for you. As said, you'll have lost your 8 grand and you won't have any transport at the end of the fictional 24 months.

And for this reason, I'm out :o
 
Points taken... I did wonder why if it 'appeared' so good, why not many people (except the USA!) use leasing as a viable option.

Definate no to leasing then! :D

edit - nothing wrong, just fancied a different car, had my eye on a new Seat Ibiza Cupra DSG, but at 16k, selling mine for 8k, leaving 8k to have to pay out at a time I need to be thinking of buying a flat/house is probably not a good idea :D

Saying that, i'd also be too paranoid with a brand new car, worried it would be scratched / dented etc! Might just wait a year and pick up a year old model :)
 
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Points taken... I did wonder why if it 'appeared' so good, why not many people (except the USA!) use leasing as a viable option.
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it does appear to be good.(for some people) just not everyone gets it...

for (a fictional) £300 a month you have a new, warenteed car at your disposal for 24 months. if it breaks someone fixes it at no cost to you. when you finish you get another NEW car in 24 months and start again, no having to sell and have the hassle of selling, they pick it up and your free to trawel the market for an other( possibly better just up the budget) no worries about depricaition or resale value as its all set out in easy to understand installements, and no extra cost less serviceing and wear and tear.

dont forget the cost is actually 26 payments.
granted at the end of it you have nothing but 300 quid aint that much....


there are nay sayers on this forum who dispise lease and or HP payment ways for cars, but your a bright chap and it is the easy way to get in to a new car at a fixed price,
yes there are cheaper ways of owning and buying cars new or other, but it is easy and relatively cheap and a fixed known price.




bullit
 
bullit in head said:
granted at the end of it you have nothing but 300 quid aint that much....
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300 quid 'aint that much' but 8000 quid is.

but your a bright chap and it is the easy way to get in to a new car at a fixed price,
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It's an easy way to borrow somebody elses car at a fixed price. Leasing normally only makes sense in a corporate environment where it has tax benefits.
 
I've done it but probably wouldn't again

Just did it the once as my missus had never had a brand new car but financially it makes little sense
 
IAmATeaf said:
On these private leases you do still need to insure and tax the car don't you?
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Often, and unless its a maintained lease (Which most private leases are not) you'll need to pay for servicing and tyres as well.

Imagine a £400 service and 2 new tyres at £300 3 months before it gets taken off you..
 
IAmATeaf said:
On these private leases you do still need to insure and tax the car don't you?
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Insure, yes. Tax depends on the lease agreement - if the finance company are the registered keeper then they will tax it.

Edit: When I had my lease A6 I put 2 brand new Continental Sport Contact tyres on the front a couple of months before it went back. They then proceeded to charge me for 2 more tyres when it went back because the ones I had fitted were only rated to 160mph when the manufacturer's spec was 180mph (or something like that). It was a 2.0 TDI :(.
 
But he owns what he has now. He isnt simply paying for it to be available for his use.
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that may well be the case but it still has a monetry value that it's costing him to "sit outside"... weather he paid cash, loan or how much it costs to keep on the road excluding /or including if you wish, tax insurance mot petrol etc...

everything has a cost, even your BM. foxxy......


bullit
 
[TW]Fox;16009359 said:
But he owns what he has now. He isnt simply paying for it to be available for his use.
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I think he's talking about the dreaded "D" word.

Excluding servicing, insurance and tax I've just worked out that my car costs me a fiver per day but as it's so old now it "D"ing hopefully at a lower rate.
 
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