Lease car for low miles

Jimbeam3678

Jimbeam3678

Jimbeam3678

Soldato
Joined
8 Dec 2002
Posts
21,460
Location
North Yorkshire
Started to think about of the idea of getting car after not having one for 6 years. I'd basically use it to drive the 20 mile round trip to work and some general weekend driving around locally.

I was all set to get a bank loan for 5K and buy a mondeo or something similar but then I looked at new Fiesta's for lease like the one below

https://www.contracthireandleasing....n-dealers/peoples-ford/ford/fiesta/100556576/

Whats the catch and what am I missing ?
 
But wouldn't you be 20% vat worse off from driving a car off the forecourt ? Plus the APR on a loan ?

Surely £130~ a month for relatively risk free motoring isn't bad deal ?
 
Plenty O'Toole said:
I'm sure I could find a used car for £5000 (as suggested in his OP) that won't require anywhere near £3000 in terms of servicing and depreciation.
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But what happens if X Y & Z happens to said car and needs fixing? I really am not the sort of person to do a DIY job on a car.

I know it sounds like I am sold on the idea of a lease car I really aren't. I'm not even sure if I'm sold on a car full stop :p
 
It depends on your view of car ownership.

A £5k Mondeo might only be worth £3k in 2 years. Meaning the depreciation cost may well only be £2k. Compared to the £3500 you would spend on the Fiesta over the same period. Of course, you're Mondeo may break down, and cost you more money. Or not get you to work one morning. It may not though. And the Fiesta could potentially do that too.

Also, you are only accounting for around 55 miles per week of general driving (given you are doing roughly 5,000 miles a year for commuting). That might be enough, but if it is not, you might have excess mileage to pay on the lease, usually around 7p per mile, but some deals can be terrible at closer to 30p per mile or more. Make sure to read the small print.

So, like I said, up to how you view car ownership. Lease deals can be very good. But they might not fit with your views on car ownership. End of the day, if you buy the Mondeo, 2 years and one month later, you'll still be driving said Mondeo. Take the lease, and you'll be onto something else. But having had to sort out your next lease, or buy a car then.
 
Plenty O'Toole said:
I'm sure I could find a used car for £5000 (as suggested in his OP) that won't require anywhere near £3000 in terms of servicing and depreciation.
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I think probably £1000 a year is a reasonable estimate for depreciating, servicing, tyres, MOT, repairs and vehicle excise duty on a £5k second hand car. Infact frankly I'd be really pleased with that little expenditure on that sort of purchase. The reality is that the potential exists for more.

£500 a year extra for a brand new zero hassle car doesn't seem particularly extravagant does it?
 
[TW]Fox;29797666 said:
Well it's a Zetec-S with a new name really isn't it?
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True, just a small increase from 125ps to 140ps and Ford are kind enough to give the dated Sync/DAB stereo as standard.
 
Not at all, it's a reasonable little car to run around in with what is a good engine even in the bigger focus.

Just be aware that the new model should be out relatively soon and that you'll ultimately pay a small premium to lease a new car.
 
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