Leasing - experiences?

[Hodders]

We make about 2 trips a year down to my brother in Catalonia.

I'd rather do that in a 10k mile car at the bottom of the bathtub curve than a 100k car that is rapidly climbing the end of the curve. It's one of the reasons we are thinking of changing out 105k miles Hyundai i40.

The stronger argument would be to buy a 2 year old car at - say - 20k and keep it for 6 or 7 years until it's done 90k+ a depreciation of about 17k.

But also bear in mind leasing means I have £28k+ sat in savings/offsetting mortgage/in an ISA.

It is swings and roundabouts - plus being honest, I quite like the idea of a new car with new tech.

 

[radderfire]

It is swings and roundabouts - plus being honest, I quite like the idea of a new car with new tech.

Well, each to their own, but I would say a 90K Superb won't be rapidly climbing the end of the bathtub curve. I would also say the experience of driving a 6/7 year old Superb would be pretty similar to driving a 2 year old one.

You can almost buy the car for what you would pay in lease charges.

Also, re electric cars, I wouldn't say the overall experience was that great, particularly with the state of the charging network. This would be an argument for keeping an ICE car longer, although I do accept electric has green plus points.

 

[Hodders]

Well, each to their own, but I would say a 90K Superb won't be rapidly climbing the end of the bathtub curve. I would also say the experience of driving a 6/7 year old Superb would be pretty similar to driving a 2 year old one.

You can almost buy the car for what you would pay in lease charges.

Also, re electric cars, I wouldn't say the overall experience was that great, particularly with the state of the charging network. This would be an argument for keeping an ICE car longer, although I do accept electric has green plus points.

Appreciate your point.

My thinking is this:

Buy 2 y.o. car for 28k, keep for 7 years. Total cost 17k depreciation plus the 4% interest on 28k purchase price that I will lose (the 28k that won't be in an ISA, it will have bought the car) over 7 years (9k) = 17k+9k = £26k

Lease cost £4k per year, over 7 years = £28k cost. But I will earn some interest on the £28k (less over time as I use it up to pay for the lease), so lets say I earn £4.5k interest. Total cost. 28k - 4.5k = £23.5k

Lease costs less, plus I get a new car every 2 years.

Feel free to tell me I'm talking rubbish! I'm happy to take criticism

 

[Hodders]

Well, each to their own, but I would say a 90K Superb won't be rapidly climbing the end of the bathtub curve. I would also say the experience of driving a 6/7 year old Superb would be pretty similar to driving a 2 year old one.

You can almost buy the car for what you would pay in lease charges.

Also, re electric cars, I wouldn't say the overall experience was that great, particularly with the state of the charging network. This would be an argument for keeping an ICE car longer, although I do accept electric has green plus points.

I'm happy to accept that a Hyundai i40 will almost certainly age less gracefully than a Skoda.

 

[radderfire]

My thinking is this:

Buy 2 y.o. car for 28k, keep for 7 years. Total cost 17k depreciation plus the 4% interest on 28k purchase price that I will lose (the 28k that won't be in an ISA, it will have bought the car) over 7 years (9k) = 17k+9k = £26k

Lease cost £4k per year, over 7 years = £28k cost. But I will earn some interest on the £28k (less over time as I use it up to pay for the lease), so lets say I earn £4.5k interest. Total cost. 28k - 4.5k = £23.5k

The point I am making is it's way cheaper to buy a 6 year old car, and it will give you quite a similar experience for way less money.

If I had to choose between your two options, I would rather buy the 2 y.o. car, but that's me. Gut feeling is that the lease deal would still be a worse deal. If you owned the car, you could keep it longer. You are clearly willing to pay a lot to drive a newer car, whereas I drive a 2005 Focus.