Half of which is depreciation. And you still have to pay road tax and servicing.
That and £6k is still cheaper than £10k
Car leasing...A good thing?
- Thread starter Pulsedriver
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Half of which is depreciation. And you still have to pay road tax and servicing.
That and £6k is still cheaper than £10k
But the only comparison you could actually make would be how much it would cost to lease a 530 brand new for 3 years not a golf..
When you have a lease car you're effectively paying the depreciation of that new car as a monthly cost, rather than sinking £x k and realising the depreciation at the end of ownership.
There are lots of different ways to buy/own/have usage of a car, not all are suitable for everyone - do the maths and see if it works out for your needs.
There are lots of different ways to buy/own/have usage of a car, not all are suitable for everyone - do the maths and see if it works out for your needs.
I still don't get the point you're making?
Fox wants 5 series --- Buys 4 year old 5 series...
or you're saying he can get a worse vehicle for the same price, but WOW its brand new?
Because the outlay for a new 5 series would NOT be the same!
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Great, so I get to benefit from 230bhp of creamy Straight Six goodness for the price of hiring a boring ecodiesel Golf!
Used cars for the win?
And I suspect a second hand Bluemotion Golf would be a lot cheaper over 3 years than a brand new one
OK, lets take the £300pm scirocco example, assuming you start with 0 capital. Also assuming it's an unmaintained lease, so we'll leave servicing, tax etc out of it.
A baseline scirocco which costs £300pm to lease costs £18,000 to buy - a loan for 24 months is £818 per month, total cost £19,648. At the end of 2 years, the car will probably be worth about £14k - so total outlay less the value of the asset is £5648
Leasing over 24 months at £300 per month equates to £7200, no asset to take into consideration so it's nearly £2k more expensive - the cost differential only goes up if you start to look at it over longer periods.
It's an easy way into a new car (who can really afford £800 per month for a diesel VW?) but if you've got £300 per month to spend over 2 years, you're better off buying a £5k~£6k used car
A baseline scirocco which costs £300pm to lease costs £18,000 to buy - a loan for 24 months is £818 per month, total cost £19,648. At the end of 2 years, the car will probably be worth about £14k - so total outlay less the value of the asset is £5648
Leasing over 24 months at £300 per month equates to £7200, no asset to take into consideration so it's nearly £2k more expensive - the cost differential only goes up if you start to look at it over longer periods.
It's an easy way into a new car (who can really afford £800 per month for a diesel VW?) but if you've got £300 per month to spend over 2 years, you're better off buying a £5k~£6k used car
Playing devil's advocate, I don't think the entire £300 represents the family budget. It should represent what he can afford to put towards a car, and a car alone. If this amount also equals the family budget, he's in dream land and should probably consider a bus or walking to work.
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I have made the point several times, what ever you drive there is a daily cost, for most people it will be near the same price point, it just depends where you want to spend your money. this is not about fox and his 4 year old BM, like I said before his was a good buy, low "D" as it's a sort after model.
I only have a small thing with the fleet manger put the "D" at 41% for two years which = £7200. so puts the cost the same.
edit also to get this saving if any you have to pay 818 quid a month, or stump it up out your savings
he might not be only able to afford 300 quid, that might be his budget not what he can pay. I was looking for a new car last month my budget was 350 but I could afford 1000, thats not the point.
but how much would the 5-6 K car cost for the 3 year term could be more expensive than the "new" scirocco. well mayby not but include all the potential problems with that price point motor, clutch gearbox HGF etc balljoints you get the picture. now how about if you get rid of those problems garenteed . but the cost will be in a managable monthly cost instead, your still paying it but you know when your paying it.
dont get me wrong I like cheap motoring but sometimes the cheapest car isnt always the cheapest in the long run....the only reason I'm fighting the lease/buying new corner is I've been there, I've had the unreliable and costly car to fix, in fact I still own one,it's currently in the shop having the auto box rebuilt at a big cost £2000.
at the end of the day you buy what you want, but just for fun work it out and post here just to see if I'm close, new old 2nd hand the only garentee you get from any car is it is going to cost you money.
bullit
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Your average £6k used car will have nothing like those problems. If thats a real concern, though, simply finance the purchase of a 6 month old approved used car?
"D" ???
Anyway, there's no way a Scirocco will depreciate by 41% in 2 years - even Golfs don't depreciate anything like that much!
A 5-6k car might need the odd repair but it's not even going to get anywhere near closing the gap.
My car has cost me £650 in non service repairs in 2 years, so a tiny cost in the grand scheme of things
Anyway, there's no way a Scirocco will depreciate by 41% in 2 years - even Golfs don't depreciate anything like that much!
A 5-6k car might need the odd repair but it's not even going to get anywhere near closing the gap.
My car has cost me £650 in non service repairs in 2 years, so a tiny cost in the grand scheme of things
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which might be a good idea, but it'll still cost X amount a month. and how close is it to your daily amount. this is all I'm getting at, what ever you buy the costs will be similar.
only going on what fleet car said and as there not at that age yet we can only speculate
the three year % is 51.
okay , wana do the numbers then?
buy
sell equivelent market value
cost to run excluding insurance tyres and tax
car make age and years owned so you can add it to the database
bullit
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In my experience, pro-lease people generally believe that used cars are complete money pits and will generally always break down, hence theres nothing you can do to convince them that leasing cars is generally poor financial sense.
The other thing you have to bear in mind is that, with a lease you are tied in for the term, so if you lose your job or your private situation changes ie kids and what not, your are pretty much screwed (without paying a pretty penny to get out of the lease), the same isnt true for a privately owned car.
The other thing you have to bear in mind is that, with a lease you are tied in for the term, so if you lose your job or your private situation changes ie kids and what not, your are pretty much screwed (without paying a pretty penny to get out of the lease), the same isnt true for a privately owned car.
That depends on how long you do it over though. It probably will be close for the first 2 years but you'll soon get to the point where the 2nd hand car is paid for and the cost of paying for it stops. The leased car will still have the £300 a month going out, every month. A year after the used car is paid for you'd be £3600 up. After 4 years in total you're £7200 up. It'd take a damned big repair bill to make a leased car worth while.
No, they won't!
When you lease you pay for the depreciation on the car *and* the profit margin of the leasing company.
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not at all I'm not pro anything, like I said I not bothered where you spend your money, just be sure you know where your spending it, thats why I asked fox what his daily cost was and anyone ekse who wants to join in, My point is or hoping to prove is what ever you drive/own the costs are fairly similar. so if the new car costs and extra £2 a day why not have that nice new car smell and a full manufactures warentee.
now with all statistics there will be the few that screw the results, (both ways) these are either smart or lucky/unlucky people.
infact calculator out I'm going to put some of my numbers in :
galaxy
bought 6000
valu now conservativly 3000
repairs servicing etc 2900...only so high due to gbox going
owned for 3 years
£5.38 per day
clio owned from new not leased but on finance
this will skew the results as it is worth more thaan I paid but here goes
bought 6000
worth 6000 now
but cost 99 a month plus servicing so 2800 ish
owned two years
£3.83 a day
not far off the mark of each other
bullit
[TW]Fox;16010529 said:
Whatever. I'll watch how my investments do in the next 3 years - I am confident they will do pretty well. I'll then do a calculation in 3 years time and see if I would have been better off buying the car new with the money I have invested. You are right in your statement however keep in mind that the depreciation is going to be less because of their buying power and the profits minimal due to it being a pretty competetive marketplace.