Leasing - pros and cons

[disfunktion]

All the more reason to purchase a car himself and keep it. If he was to buy a brand new Golf and keep it for 10 years before throwing it in the dustbin, it would cost him £1800 a year to own. This is exactly half the cost of leasing one, although obviously leasing for 10 years means the car is never more than 3 years old whereas owning means the car increases in age until it is 10 but from what you've said this isn't a concern - buying and keeping would save him £18,000 over a 10 year period - and the likely resale value of the car (Golfs always sell) would probably reimburse any unexpected repair bills he may have to fork out as the car gets older anyway.

It's a daft idea.

Noted. We'll put the idea in the bin.

 

[[TW]Fox]

The comparison is over a 36 month period. End off. In the 37th month he makes new arrangements (maybe buying a 3 year old Golf!). No one is talking about giving up a car...

The ability to begin month 37 with a car in perfect condition you know well is surely worth more than £0.

Looking at the figures I've come up with how could you make a case for leasing for somebody who has sufficient capital to buy outright? It is immeasurably more expensive.

 

[[TW]Fox]

Nothing wrong with the Golf at all - just buy a year old one and let someone else pay for the depreciation

Looking at my figures there doesn't appear to be much in the way of depreciation. Frankly I'm amazed at £1900 a year in depreciation to own a Golf from new.

 

[iaind]

Looking at my figures there doesn't appear to be much in the way of depreciation. Frankly I'm amazed at £1900 a year in depreciation to own a Golf from new.

Not sure where the figures come from, but What Car reckon the depreciation will look like this:

 

[[TW]Fox]

Not sure where the figures come from, but What Car reckon the depreciation will look like this:

a) Figures are using the current trade book price of a 3 and 5 year old Golf GT TDI 140 and adding about 500 quid to give a worst case scenario private sale value. If anything they will be higher - a 3 year old Golf now is an old shape vehicle. In 3 years time a 3 year old Golf purchased now would still be current shape having a positive effect on value.

b) Your graph is for a different car

 

[iaind]

a) I meant I'm not sure where What Car get the figures from

b) He said he wasnt considering diesels, thats the equivalent petrol

 

[[TW]Fox]

Also they are based on average mileage per year whereas the OP's mileage is very low and will have a positive effect on residuals, you've seen how people fight over low mileage cars. At 5 years old the OP's Dads Golf would have under 20k on it rather than 60k as per an average mileage car.

 

[disfunktion]

The 97 Polo when written off only had 71,000 miles on it. We got £1950 for it from the insurance company which I thought was pretty good.

VW used prices are all over the place so we cant really use figures from Parkers etc -

We have been looking at cars at dealers and most of the time cars are selling more or less straight away. We've found this at both main dealers and independent places.

To be honest we are getting fed up of looking - it doesn't help that the salesmen know nothing about the cars they are selling and I'm having to tell them what spec the car is and they look clueless when I quote things at them from brochures.