Leasing vs finance

squarehead94

squarehead94

squarehead94

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25 Nov 2011
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Cumbria, United Kingdom
Wife is after a new(ish) nissan micra. Test drove one at a stealers and loved it. Thought I could get a bank loan as had a 80% approval rating but was declined. Finance works out pretty expensive (13k for a 2020 Ntec sport but with finance works out at 18k over 4 years)

Considering a 2 year lease. Wouldn't then need to worry about taxing it, MOT or perishables (maybe tyres at a push but I'd expect OEM new tyres to last 20k or so but)
2 year lease works out around 6300, and no need to worry about depreciation. Lease Co ive looked at was vanarama. It's on the same spec car but a new model.new price of said car is 17500.

Is leasing any good and what are the pros/cons of leasing?
Thanks
 
Cons - you have spent over £6k to borrow a Micra. :p

Is shopping around for a few more loans not an option?
Looking at HSBC, rate is pretty decent at the moment. (3.3%)
£13.5k over 36 months costs £600 in interest
 
MikeTheNative said:
Cons - you have spent over £6k to borrow a Micra. :p

Is shopping around for a few more loans not an option?
Looking at HSBC, rate is pretty decent at the moment. (3.3%)
£13.5k over 36 months costs £600 in interest
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I'm baffled to be honest, my credit score has dramatically improved (clearscore 830/1000) over the last 18 months. Very little debt (£300 CC thats it) homeowner, married with a healthy earnings/expenses ratio. However, I tried moneysavingexpert/moneysupermarket and clearscore and the only decent option was santander who knocked me back this morning. Sainsburys were an option but only a 30% approval chance. I would have preferred to get a bank loan/low interest rate loan and wouldn't have minded buying the 18 month old model but not sure where to try that won't do a hard credit check. Is it something brokers could check for me or?
 
Dramatically improved indicates you have a glitch in your history?

The benefit of PCP/leasing is that the loan is secured against the car, so much easier to get accepted. If you have "bad"-ish credit then that'll be your only option, and therefore the cheapest.
 
squarehead94 said:
Wife is after a new(ish) nissan micra. Test drove one at a stealers and loved it. Thought I could get a bank loan as had a 80% approval rating but was declined. Finance works out pretty expensive (13k for a 2020 Ntec sport but with finance works out at 18k over 4 years)

Considering a 2 year lease. Wouldn't then need to worry about taxing it, MOT or perishables (maybe tyres at a push but I'd expect OEM new tyres to last 20k or so but)
2 year lease works out around 6300, and no need to worry about depreciation. Lease Co ive looked at was vanarama. It's on the same spec car but a new model.new price of said car is 17500.

Is leasing any good and what are the pros/cons of leasing?
Thanks
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You're paying over 6k to rent a used Micra for 2 years.

Try and get a personal loan with your bank, interest rates will be lower and you're more likely to be accepted.
 
Some people like a Leased car. They get to drive a new car at a reduced price and not have to worry about repairs or anything. As said though the car is never yours and goes back after the Lease. For someone who changes cars regularly and doesn't mind not owning the car at the end they can be good but they're never cheap. The days of £250 Golf GTI's and £300 Golf R's are long gone and the chip shortage means a year or more in some situations unless you'll literally take any car available. Options can add massively to the cost.
 
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So long as you realise you are effectively just renting a car for X years then leasing is a good way to drive a new car. Obligatory "imo". :) Last 4 cars have been leased.

Have a Google session see if you can find any lease companies with stock offers.
 
Yeah it is 6k but that's 6k very 2 years where as a micra will last for pretty much as long as you want it to, you could probably run it for 10 years with minimal expense. I'd just get a loan and buy it outright.
 
MissChief said:
They get to drive a new car at a reduced price and not have to worry about repairs or anything
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This what you get when you buy a new car, whether you buy it, lease it or finance it. It's not a uniquely lease benefit. There are usually cheaper ways to get a new car than lease it.
 
Does nobody RTFT? Or do they just froth at the mouth at the opportunity to post something?
 
[TW]Fox said:
This what you get when you buy a new car, whether you buy it, lease it or finance it. It's not a uniquely lease benefit. There are usually cheaper ways to get a new car than lease it.
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True. Leasing does have it's benefits, but a PCP may be better depending on your own situation.
 
People coming to end of PCPs right now are doing well, their cars are worth a lot more than the balloons. With leasing you would lose that.
 
200sols said:
People coming to end of PCPs right now are doing well, their cars are worth a lot more than the balloons. With leasing you would lose that.
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Recommendation for OP to only buy a car when a global pandemic/global chip shortage happens to benefit from PCP valuation?
 
dLockers said:
Recommendation for OP to only buy a car when a global pandemic/global chip shortage happens to benefit from PCP valuation?
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It's a fair point though - with a lease you get the same protection a PCP offers from higher than anticipated depreciation but unlike a PCP lower than anticipated depreciation benefits only the lease company and not you.

It's really rare personal leasing makes sense outside of special offers of the sort that are far less common these days.
 
squarehead94 said:
Is leasing any good and what are the pros/cons of leasing?
Thanks
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The main con is that you are paying money out but you won't own anything whatsoever. If it was me, I would be looking at an older Nissan Micra that I could afford to buy outright. They are pretty reliable, so it should not be that difficult to find a reliable older car.
 
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