New to car leasing

I can get nearly £3k discount on an st2 from 20 seconds googling.

That makes an £18k car just over £15k - so to perform worse than that lease it would have to be worth £10k at that point in time. Can't see it, that would be a 45% drop in 2 years. Maybe trade, but not retail

Lease deals work by predicting depreciation then adding interest - its that simple. OK they buy in bulk so get discount (mirrored pretty much by the brokers) and occasionally get that depreciation quite wrong (not so much these days) but its not some magical deal. Generally speaking you will pay for the fact someone else has taken the hassle of working things out away from you

Its worth saying I'm not against leasing in the slightest, but let's be realistic
 
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rodenal said:
I can get nearly £3k discount on an st2 from 20 seconds googling.

That makes an £18k car just over £15k - so to perform worse than that lease it would have to be worth £10k at that point in time. Can't see it, that would be a 45% drop in 2 years. Maybe trade, but not retail
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Explain the way you got to 45%? lol
 
Whole thing is a bit flawed anyway as the buy option has an initial cost of £5k and £100/year tax so must be an older model compared to the lease deal (note I'm not saying that necessarily means that a second hand Fiesta is a bad option, just that it isn't a like-for-like comparison).
 
The long and short of it is, excepting a few high residual special cases, buying or leasing a new car is not a cheap business, it will depreciate a lot and you will pay for that, directly or indirectly.

What leasing (and PCP I suppose) does allow though, is for someone to get into a new car with relatively little financial liquidity. You need have only a couple of hundred quid spare a month and you can drive around in a brand new car right now - you can see the appeal to people, even if that money leaves them ultimately with no asset. Not much different to renting a house in many aspects - it provides you a 'service' rather than an asset for your money.
 
Kenai you hit the nail on the head there mate! It's a service for 2 years indeed, very much like renting a house. Thanks for all the advice guys but I'm still unsure as what to do.

For £4k I'm not going to get anything as good as a brand new Fiesta 2014 plate. But then again I've never leased a car before and so that's making me nervous.
 
elrasho said:
Kenai you hit the nail on the head there mate! It's a service for 2 years indeed, very much like renting a house. Thanks for all the advice guys but I'm still unsure as what to do.

For £4k I'm not going to get anything as good as a brand new Fiesta 2014 plate. But then again I've never leased a car before and so that's making me nervous.
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Here you go:

http://www.autotrader.co.uk/classif...m/4000/postcode/dd114tw/radius/1500?logcode=p

That won't be too far off your £4k budget (with some good negotiating). Okay, it aint new, but it wont be a million miles different to a new one. I'd be surprised if it cost you much more than £1500 over the next couple years, including depreciation.
 
Although you can fit a pram in a Fiesta if you are worried about space I'm not sure downsizing from a Golf is necessarily the way to go. If you don't yet have a child you may massively underestimate how much stuff you(she) needs(wants) to cart about.... we did!
 
HangTime said:
Although you can fit a pram in a Fiesta if you are worried about space I'm not sure downsizing from a Golf is necessarily the way to go. If you don't yet have a child you may massively underestimate how much stuff you(she) needs(wants) to cart about.... we did!
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Could you recommend a car that would fit the bill the is big enough and within my budget please?
 
problem with small cars, they are horrible valued! everyone want a second hand small car cos they think they are MUCH cheaper to run than a large car.

i prefer to have a £4k focus/mondeo than £4k fiesta. the one posted above is 5 years old fiesta over £4k no thanks
 
HangTime said:
Although you can fit a pram in a Fiesta if you are worried about space I'm not sure downsizing from a Golf is necessarily the way to go. If you don't yet have a child you may massively underestimate how much stuff you(she) needs(wants) to cart about.... we did!
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Wise advice, I found the same. Infact at one point I went from a Mondeo ST220 to a Mini Cooper S and it was a disaster!
 
Yeah, I had a 3 series estate and that was only just big enough. When the wife fell pregnant the second time, I changed it for my current 5 series. It is big enough, just, but the rear bench is now full with only 2 child seats using isofix.

Discovery next for me, although the VW Sharan or Seat Alhambra should get a look in, because they are proper roomy inside.
 
elrasho said:
Could you recommend a car that would fit the bill the is big enough and within my budget please?
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No, because I'm not aware of any brand new cars you an lease for £130/month that I would be confident in recommending. Maybe check out the Fabia estate...
 
Went to see a new Focus Zetec 1.0 Ecoboost with the Mrs on the weekend. We were both very impressed.

The garage was offering the following:

£3k deposit
£185/month for 3 years on 10k mileage

Seems steep to me but for the price I can't see any other car beating it for what you're getting. Looking online the deals are the same, however, I can get the Fiesta Zetec for £160/month with the same deposit and mileage.
 
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