Soldato
Never leased a car before - always bought outright usually at about 2 years old.
We are looking to get rid of our old and very tired euro5 diesel for an EV.
Looking at a 2 year old Kia EV6, most seem to be in the £30k to £35k range. Lets say we keep it 4 years and then sell for about £12k.
By paying £32k up front, we will lose any investment income (at the moment it is offsetting our mortgage so basically earning us 6% tax free), so total cost of buying:
Leasing (not interest saved is less due to using that balance to pay the lease payments over 4 years):
Basically it seems as though leasing a new car for 48 months would be cheaper than buying a 3 year old one and selling after 48 months.
Is there a hole in my thinking?
General lease questions:
1) I'm assuming lower initial payments are better as if the car is written off, insurance will "buy" the car from the lease company. All lease payments will simply disappear.
2) Is leaseloco going to find the best deals or are there other sites worth looking at?
3) Presumably if BoE interest rates come down, lease deals will get cheaper due to lower finance costs for the lease company?
4) The other benefit of leasing an EV is the unknown depreciation - if a new battery tech comes in, suddenly all "old tech" cars will take a hit.
What are your thoughts?
We are looking to get rid of our old and very tired euro5 diesel for an EV.
Looking at a 2 year old Kia EV6, most seem to be in the £30k to £35k range. Lets say we keep it 4 years and then sell for about £12k.
By paying £32k up front, we will lose any investment income (at the moment it is offsetting our mortgage so basically earning us 6% tax free), so total cost of buying:
Initial cost + interest we would have earned on purchase sum - resale value = 32k + 9.6k - 12k = 29.6k
Leasing (not interest saved is less due to using that balance to pay the lease payments over 4 years):
Initial payment + 47*monthly lease - interest saved by offsetting purchase price = 1650 + 47*525 - 4000 = £23k
Basically it seems as though leasing a new car for 48 months would be cheaper than buying a 3 year old one and selling after 48 months.
Is there a hole in my thinking?
General lease questions:
1) I'm assuming lower initial payments are better as if the car is written off, insurance will "buy" the car from the lease company. All lease payments will simply disappear.
2) Is leaseloco going to find the best deals or are there other sites worth looking at?
3) Presumably if BoE interest rates come down, lease deals will get cheaper due to lower finance costs for the lease company?
4) The other benefit of leasing an EV is the unknown depreciation - if a new battery tech comes in, suddenly all "old tech" cars will take a hit.
What are your thoughts?
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