So I haven't had a car in a while now, so I'm really out of the loop. My experience is buying a car, replacing all the audio, and eventually selling. Now most cars are either harder to mod or to the point where the effort isn't worth it, and/or leasing has become very common. I never understood leasing - is that what's worth it these days? Does it depend what sort of price/tier car you are going for? My last car was < 5k (Ford Fiesta) but now I'm trying to get my head around the whole buy vs lease dilemma and the pro's/con's before my next purchase. Thanks all
Depends on the car. Lots of lease deals offer fantastic value for money to get you into a brand new car. They also tie you into the perpetual debt cycle which can be hard to break when tantalised with the next lease deal (also known as a lump and dump; where you do 'mad maths' that says dumping your current lease and putting the negative equity into the new lease makes sense).
Check out some of the finance offers for the car you like then do the total cost of ownership calculation. Most have a hefty deposit with monthlies, and very very very little flexibility to give the car back early - so be sure as you are all but stuck for the term.
I had leases when I had better things for the capital to do. I now have a nearly new car paid for with a bank loan which is a much more cost effective way compared to dealer finance (normally at tragic rates for second hand, where nearly new doesn't make sense versus new on a PCP).
Check out some of the finance offers for the car you like then do the total cost of ownership calculation. Most have a hefty deposit with monthlies, and very very very little flexibility to give the car back early - so be sure as you are all but stuck for the term.
I had leases when I had better things for the capital to do. I now have a nearly new car paid for with a bank loan which is a much more cost effective way compared to dealer finance (normally at tragic rates for second hand, where nearly new doesn't make sense versus new on a PCP).
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Work out the cheapest way of getting the car you want, then do that.
It's unlikely to be leasing but occasionally might be.
The internet seems to think everyone leases these days, they don't. Most new cars are financed on a personal contract plan or hire purchase agreement, very few are leased and many main dealers don't even offer leasing.
It's unlikely to be leasing but occasionally might be.
The internet seems to think everyone leases these days, they don't. Most new cars are financed on a personal contract plan or hire purchase agreement, very few are leased and many main dealers don't even offer leasing.
SkodaMart
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SkodaMart
Or alternatively just buy a car you can afford and have zero debt.
This +1!
If you can't afford to buy a car outright then you almost certainly shouldn't buy it with interest/lease charges added on.
SkodaMart
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SkodaMart
I do my best to avoid depreciation as much as possible too.
How many people do you think can afford to buy any car outright? Unless you mean used. I don't think any blanket rule like that should be used - it all depends on an individual's use case and circumstances.
SkodaMart
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SkodaMart
Depends what you drive doesn’t it really?
Trouble is everyone wants Audi, BMW, Golf R these days.
New ones at that.
Leasing rarely makes sense unless you are very open-minded about what car you get and just look out for bargain deals (rule of thumb being <20% of book value over two years). Even then, if you are not fussed about sitting in new metal then it still might not be that great an option compared to buying a used car.
You really need to look for a 20%-25% lease cost from list price over 2 years and 10k miles a year as a rough calculation as to whether its a good deal.
My Golf R deal cost me 7k over 2 years and worked out cheaper than buying a new one.
My Golf R deal cost me 7k over 2 years and worked out cheaper than buying a new one.
Thanks guy this is the kind of way I was thinking too. It just seems like so many people I know are leasing but looks like it comes down to people not having the money to buy a car, or just wanting something really new.
Also, what happens if you crash it? You have to pay the value of the car right??
Also, what happens if you crash it? You have to pay the value of the car right??
I had GAP insurance on mine in case the insurance company didn't pay out what I needed to settle. Pretty cheap for peace of mind using ALA and discount code MSE25
I suspect they are using other products and calling it a lease.
In general lease costs have shot up by up to 25% since January. Obviously there are still some good deals around but it has swung the pendulum back towards buying again.
What Fox said above is very true. Lease has become a synonym for PCP, PCH, proper Lease.
"Not having the money" is also subjective. It is about how much cash you want tied up when you don't need to. PCP deals are typically low interest rates, so the cost and availability of that cash should be factored in too. I'm quite happy having a rainy day fund at the cost of my 2% bank loan, for example. Over the time I own the car, it'll be peanuts in the grand scheme. But having access to the cash I could have spent? Invaluable if I need emergency money or have a sure thing on the stock market /s
as small as 20%? Is that all a car loses in value over 2 years? Surely its more than that?
I tend to do 3 years and if lease is less than 50% then I see it as a good deal. Not many cars are worth 50% of their new valuer after 3 years.
Hell some cars like the Citroen C4 1.2 Puretech costs £18,610 new, but would lose £11,260 by the end of the first year of ownership so loses 60% of its value after just one year!
If you had a lease for 2 years which cost less then £11,260 then it would be good deal.,
No, paying £11k for 2 years in a Citroen C4 1.2 is about as far from a 'good deal' as it's possible to get.
The list price is simply not a relevant number in any calculation. Few people pay it and it doesn't represent the new cost of the car.