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New to car leasing
- Thread starter elrasho
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[TW]Fox;26913040 said:
Ahh, I see.
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ownership isn't a pro
tax depends on emissions, you can pick a car with free tax
tax depends on emissions, you can pick a car with free tax
Soldato
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Here's a Pro and Cons I did for the Fiesta 1.25i deal
On that respect I'm really thinking of getting it. Got an appointment with We Buy Any Car later this week, see how much they offer me for my current car.
Don't you have to pay another deposit after 2 years?
Soldato
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It is if you consider its worth more than £0.... just need that in a cell to show it and massively reduce the total cost of ownership.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Yes, A new car every 2 years is not a benefit either, it just means you repeat the process after 2 years. So you could equally start a lease 2 years after buying, you can only look at the costs and benefits over the set 2 year period.
Thats pretty damn good for what is essentially a boggo 1.6 off the shelf isn't it?!
Shame its probably about to go whenever a new model is out.
EDIT
Never mind it has been replaced by the 1.0 already and that's the engine your on about
DOH
Not if the bought car only loses 1k in the two years
You need to:
Value the bought car post 2 years
Allow for mot and servicing on bought, allow for servicing on new.
Allow for maintenance, probably not much difference in either with that type of car, lease car tyres might be more expensive but there should be very little if any other non warranty cost
Allow for any excess mileage
Check insurance differences if any
Potentially allow a sum for deposit on new leased car in two years time - though that's really an external cost to this, effectively funded elsewhere ( but you can't forget about it)
Using the boss' car as an example - we paid about £5k for it 18 months ago, I'd be amazed if it wasn't still worth at least £4k, maybe a bit more. In maintenance terms it has cost me £100 in two front tyres, dealer gave me a free service and mot so those won't be incurred until next year. Insurance v leased on it were near identical. We own it, so have whatever its resale is as capital.
18 month ownership cost is about £1k, extend to 24 months doubt the value will shift much, will need serviced and mot'd. Let's say £1300
Lease on the same car on a 3+23 would have been circa £100 per month so £2400 equivalent - that's on something that's about the cheapest lease you'll ever find
Edit - forgot tax, add about £40 to the bought car and maybe I'll spend £1-200 on suspension gubbins or the likes for it too (though I actually doubt it).
You need to:
Value the bought car post 2 years
Allow for mot and servicing on bought, allow for servicing on new.
Allow for maintenance, probably not much difference in either with that type of car, lease car tyres might be more expensive but there should be very little if any other non warranty cost
Allow for any excess mileage
Check insurance differences if any
Potentially allow a sum for deposit on new leased car in two years time - though that's really an external cost to this, effectively funded elsewhere ( but you can't forget about it)
Using the boss' car as an example - we paid about £5k for it 18 months ago, I'd be amazed if it wasn't still worth at least £4k, maybe a bit more. In maintenance terms it has cost me £100 in two front tyres, dealer gave me a free service and mot so those won't be incurred until next year. Insurance v leased on it were near identical. We own it, so have whatever its resale is as capital.
18 month ownership cost is about £1k, extend to 24 months doubt the value will shift much, will need serviced and mot'd. Let's say £1300
Lease on the same car on a 3+23 would have been circa £100 per month so £2400 equivalent - that's on something that's about the cheapest lease you'll ever find
Edit - forgot tax, add about £40 to the bought car and maybe I'll spend £1-200 on suspension gubbins or the likes for it too (though I actually doubt it).
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Here's a Pro and Cons I did for the Fiesta 1.25i deal
On that respect I'm really thinking of getting it. Got an appointment with We Buy Any Car later this week, see how much they offer me for my current car.
With VAT the lease is probably more like £3700 over 2 years.
The used car... let's say it is worth £3500 after two years would have cost £1500 in depreciation and an extra £200 in tax, so £1700.
Unless you really want a new car, are going to get 100,000mpgz on the new car or reckon you'll spend £1000 a year on maintenance and MOTs on the second-hand car then the lease isn't the option to go for if being financially savvy is top of the criteria list.
Here's a Pro and Cons I did for the Fiesta 1.25i deal
On that respect I'm really thinking of getting it. Got an appointment with We Buy Any Car later this week, see how much they offer me for my current car.
Not only have you not included a residual value for the car you'd buy, you've also failed to subtract the price of your Golf from the buy column. So even before the possibility of your leasing price not including VAT (and why no tax?) you're at 3500 vs 1600. Can get new car after 2 years actually needs rephrasing to Locked in for 2 years then have to get new car, whereas buying it has the flexibility to do whatever you want.
Pardon?
Here's a Pro and Cons I did for the Fiesta 1.25i deal
On that respect I'm really thinking of getting it. Got an appointment with We Buy Any Car later this week, see how much they offer me for my current car.
LOL
Don't EVER try to become an accountant.. wow
Wow can't believe they can be had for that cheap
I want one they look like they would be a blast to drive and are really quick.
For an 18k car it is. My mondeo ST220 cost me 3.5k couple months ago then I have spent £250 on it already and that's in a few months. If it throws up any big bills over the next year then that's more than the lease cost of a brand new car And a new St Fiesta is quicker than my mondeo.
I agree that most lease options r a rip off but I think that's a good deal for that type of car
Soldato
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Is your mondeo worth £0?
I'm not saying its terrible, it seems perfectly reasonable but i doubt its any better than you could do yourself, especially going pre reg or ex demo
No
wasn't thinking about at the end of the lease having nothing to show for 5k were as my mondeo will be worth 60% of it's cost in a years time wen I sell it on providing nothing major breaks.Wow can't believe they can be had for that cheap
I want one they look like they would be a blast to drive and are really quick.
Exactly the point I stated earlier in the thread.
Let's not kid ourselves, prices are insanely cheap. If you want a new car on your drive for the lowest cost in recent history now is the time to get one.
Once you add up the total costs of a second hand equivalent with a similar outlay, lease is very close because there are no unexpected costs.
The naysayers can quote me on this in the future.