Buy vs Lease?

SkodaMart said:
Check out carwow.
That’s what I was saying earlier.
You can’t get £5000 off a new berlingo nothing it you PCP or lease one.
So you are already paying £5k too much before you start.
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I'll be amazed if they're offering cash discounts but not PCP. Half the time the discounts they quote literally are the PCP manufacturer incentives.

Leasing is differently structured to begin with, you don't get 'a discount' because it's a simple rental agreement.
 
Kenai said:
I'll be amazed if they're offering cash discounts but not PCP. Half the time the discounts they quote literally are the PCP manufacturer incentives.

Leasing is differently structured to begin with, you don't get 'a discount' because it's a simple rental agreement.
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Just had a look at carwow for the Golf R.
Looking like £2500 off but it’s too late to get the offers through.
I think it will be easier to get one on PCP but you will end up paying close to full RRP plus possibly interest too (there are interest free deals on less desirable cars)
Either way it’s £40k for a Golf (almost)
 
SkodaMart said:
Just had a look at carwow for the Golf R.
Looking like £2500 off but it’s too late to get the offers through.
I think it will be easier to get one on PCP but you will end up paying close to full RRP plus possibly interest too (there are interest free deals on less desirable cars)
Either way it’s £40k for a Golf (almost)
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You'll have to explain what relevance any of that has to whether available discounts or incentives are better on PCP or cash deals.
 
Kenai said:
You'll have to explain what relevance any of that has to whether available discounts or incentives are better on PCP or cash deals.
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£2500 off for a cash sale and nothing for PCP.
Will update when I get the deals through.
Interested myself.
Cash is still king, but very rare these days.
 
SkodaMart said:
£2500 off for a cash sale and nothing for PCP.
Will update when I get the deals through.
Interested myself.
Cash is still king, but very rare these days.
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I highly doubt there's a £2500 cash discount on a Golf R but zero PCP discount, it's usually the opposite due to the 'manufacturer deposit contributions', even if the headline price looks higher.

Last time I asked for quotes through carwow not a single offer came back cheaper for a straight cash purchase.
 
Greebo said:
But it seems daft to not look at leases unless they are less than 20-25% of list price. It all depends on the car and how much they depreciate by.
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I'm not saying don't look at them, I've said it's a rule of thumb to help identify potential bargains and that there may be a 'middle ground' to avoid getting a small runabout when you want a 4v4 by buying something that's a good deal but not market-leading. I also tried to caveat that bit by saying hopping to random_cheap_car is just if you are looking to maximise VFM which I appreciate not everyone is.

If a lease deal works out cheapest on one's preferred car then happy days, but often that won't be the case because the depreciation has to be funded somehow. The 20% target is just to highlight where the best deals sit (with the acknowledgement it depends what sort of discounts off list are available), obviously the higher the cost the less likely it is to be the best route in.

SkodaMart said:
If you can afford one. Pay cash big man.
Trust me you will get a better deal.
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It doesn't work like that though. Cash can mean you have to forgo discount schemes etc. Best deals often seem to be to buy on finance then pay it all off really early to withdraw from the agreement. You frequently see this on the broker sites like DTD, "Please add £3000 if paying by cash" etc.
 
Think the point being made is that the sooner you are out of the debt cycle (entirely) apart from mortgage, you eventually free up enough cash to save up to buy any car you want. In most cases, enough cash to buy what tends to be on the road, hatches, coupes, SUVs etc which is a fair point.

Some people don't see it this way and perhaps never will. As with most things in life, its paying extra in the form of interest etc for the convenience (hassle free motoring typically) that doesn't mean all consumers are financially inept.

Im sure everyone has ordered a takeway and paid the extra for the convenience of it being made and delivered, without weighing up whether it would be cheaper to buy the ingredients and make from scratch or stick whatever in the oven.
 
Lopéz said:
A mortgage debt is avoidable (I didn't say it was unavoidable) because you can:

Pay cash
Share a house with someone else
Not buy a house

Need somewhere to live != Need to own a house
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Errm, just no.
I’ve done it all, rented and lived with someone else as a lodger and trust me you NEED to buy a house.
Being a lodger might work for a single man, but try adding children to the equation.
Renting is ok short term.
 
silvagti said:
That's the danger really. It encourages people to get into a debt cycle of buying new car every couple of years when you'd think twice if you had to pay it as a loan or outright purchase.
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Agree, it makes you think twice. One guy I use to work with had two cars on PCP and use to moan about the level of debt he was in. It’s was stressing him out. He didn’t like it when I pointed out that he has two cars on PCP that was making broke every month.
 
nas said:
Think the point being made is that the sooner you are out of the debt cycle (entirely) apart from mortgage, you eventually free up enough cash to save up to buy any car you want. In most cases, enough cash to buy what tends to be on the road, hatches, coupes, SUVs etc which is a fair point.

Some people don't see it this way and perhaps never will. As with most things in life, its paying extra in the form of interest etc for the convenience (hassle free motoring typically) that doesn't mean all consumers are financially inept.
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Total agree with you here. It’s just comes down to your personal opinions on debt and risk at the end of the day.
 
HangTime said:
I'm not saying don't look at them, I've said it's a rule of thumb to help identify potential bargains and that there may be a 'middle ground' to avoid getting a small runabout when you want a 4v4 by buying something that's a good deal but not market-leading. I also tried to caveat that bit by saying hopping to random_cheap_car is just if you are looking to maximise VFM which I appreciate not everyone is.

If a lease deal works out cheapest on one's preferred car then happy days, but often that won't be the case because the depreciation has to be funded somehow. The 20% target is just to highlight where the best deals sit (with the acknowledgement it depends what sort of discounts off list are available), obviously the higher the cost the less likely it is to be the best route in.


It doesn't work like that though. Cash can mean you have to forgo discount schemes etc. Best deals often seem to be to buy on finance then pay it all off really early to withdraw from the agreement. You frequently see this on the broker sites like DTD, "Please add £3000 if paying by cash" etc.
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Yeah it just seems weird to be picking your car based on just what is a bargain. Perhaps some people live like this.

And yes somebody always has to pay the depreciation but two things can skew it as far as lease cars goes.

1. The lease company overstates the expected residual value of the car in 2/3 years time which is what happened with the Golf R and why you could have leased them for £300 per month last year (they are now closer to £500 per month on lease) so it only cost you £10k for three years lease. No way will that car only lose £10k even if you managed to buy it with a good discount (unlikely as well)
2. Lease companies sometimes quite often get better discounts than you will get from the dealer. I know a few years ago when Mercedes lost their no1 spot as car manufacturer, they increased the discount on all models to lease accompanies to 30%. That didnt mean that you could go into a mercedes dealer and negotiate 30% off the price of buying one but did mean there were some stupidly cheap lease deals on Merc cars.
 
SkodaMart said:
Errm, just no.
I’ve done it all, rented and lived with someone else as a lodger and trust me you NEED to buy a house.
Being a lodger might work for a single man, but try adding children to the equation.
Renting is ok short term.
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In your opinion, sure. There are plenty of people who happily rent as a family - hence you don't NEED to buy a house. It's personal preference.
 
SkodaMart said:
Errm, just no.
I’ve done it all, rented and lived with someone else as a lodger and trust me you NEED to buy a house.
Being a lodger might work for a single man, but try adding children to the equation.
Renting is ok short term.
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Okay I can't sensibly debate with you, there are literally millions of people who do not, never have, and never will own a house.
 
Basher said:
In your opinion, sure. There are plenty of people who happily rent as a family - hence you don't NEED to buy a house. It's personal preference.
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What happens when you reach retirement age? No longer earning an income to pay the rent?
 
Greebo said:
. I know a few years ago when Mercedes lost their no1 spot as car manufacturer, they increased the discount on all models to lease accompanies to 30%
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What? Where did you get that from?

'Number 1 spot' of what? Mercedes have never been number 1 volume car manufacturer and I doubt they've ever chased such a place.
 
[TW]Fox said:
What? Where did you get that from?

'Number 1 spot' of what? Mercedes have never been number 1 volume car manufacturer and I doubt they've ever chased such a place.
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You are indeed correct. I had to google it to find it. It was when Merc fell out of the top 3 and BMW took 3rd place that they increased their discount to 30% to drum up sales. This is UK based, not worldwide.

I couldnt quite remember what my lease broker said at the time as to why there was so many extra cheap Merc deals around but knew it had something to do with position.
 
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