Yep - I added that exact paragraph into my previous post, but deleted it because it was too obvious
When are you going fully electric?
- Thread starter Ricochet J
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Yep sure
Looking on AT, my car 3 years on is going for about £33k and it was just £47k new. So that's still £920 a month to own it after 3 years. I've been paying about £420 per month to use for it for 3 years. For me, the feeling of paying double per month, for a car 3 years old feels wrong
where did you get £920 from? you can just get a longer period personal loan to reduce the monthlies to £420, but after 3 more years you'll have a significant chunk of equity above the outstanding loan amount, instead of nothing
Sure, it was an example - you could have the £33k loan over 25 years and pay £110 per month, plus interest, but who wants that ! - 3 years is the typical time.
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I think if also be wary of not owning a car and financial Difficulty.
I wouldn't want that debt hanging over me if I was without a job for a while for example.
Edge case for sure. But I feel like I'm subscribing to my house at the moment. But at least I own my car. Even if it is a bit ghetto
I wouldn't want that debt hanging over me if I was without a job for a while for example.
Edge case for sure. But I feel like I'm subscribing to my house at the moment. But at least I own my car. Even if it is a bit ghetto
think this has gone a bit off topic now about lease a car vs buying a second hand. However lease/SS deals do have residual costs as a factor I guess.
For my £510 gross a month for a cupra born which covers a lot of the fuel cost versus my ICE. But really it was a cheap opportunity to get a new car
For my £510 gross a month for a cupra born which covers a lot of the fuel cost versus my ICE. But really it was a cheap opportunity to get a new car
you have to look at the total cost over a set period, not just the monthlies.
One lever you have to get the monthlies back to what you want is to change the length of the loan. Not because you intend to pay it back in say 6 years at all, as in your example you intend to dispose of the car after 3 years and do something else for example, at which point you can pay off the loan using the proceeds from the sale.
However, if you set the term out to 6 years, your monthlies will be comparable to a 3 year PCP, and the total cost of interest over the 3 years is almost always still cheaper than a 3 year pcp with a balloon, and the amount of capital remaining after 3 years is almost always lower than the balloon too for the same reason, as you're paying back more capital.
That then also almost always will make it cheaper than a lease.
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High UK inflation too, in conjunction with improved supply, is gong to reduce the residual value in 3 years too, which could be favourable to the leasing option
(but the leasing company will have figured that in)
Don't know what the waiting time is for new EV's now but the risk of addtional battery import taxes come 2024, is looming, for a non-UK car.
(but the leasing company will have figured that in)
Don't know what the waiting time is for new EV's now but the risk of addtional battery import taxes come 2024, is looming, for a non-UK car.
I get it
What if I don't want to a run 3 year old car for another 6 years [I'm happy paying more not to do that]
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
You sell it and start again?
(Which is now as simple listing it on Motorway or similar and waiting for somebody to collect it from you)
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I get it
What if I don't want to a run 3 year old car for another 6 years [I'm happy paying more not to do that]
i literally said just sell it after 3 years and pay off the loan....no different from having a balloon left at the end of PCP....the duration of the loan is completely unlinked to how long you own the car for
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Caporegime
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I have just ordered a GR86. Looking to put 18k down once my car is sold. That will leave me with a loan of 15460 over 5 years which is around £300 a month going off current rates.
Residuals are fantastic on these at the moment. I could even flip it for more money once it arrives if I wanted to but say if something terrible happens I can just sell the car and pocket the rest and buy a cheap run around if needed. Very little financial risk involved.
Since covid strong second hand car prices have almost made buying brand new a real viable option. EV's on the other hand is a bit more risky as the residuals are through the floor at the moment as no one wants them second hand. The vast majority of sales are fleet.
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Soldato
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Going okay so far. Le Shuttle was empty so ideal to charge before boarding.
The problem with that approach, and any purchase model that includes using the car as collateral, is that now you have to find a new deposit for its replacement. Or take out a new loan to do the same again.
To be clear I’m not disagreeing with this method, it works just as you say. My point is that regardless of the way you end up in that car, it is an endless cycle of costs. So when someone says “at least I own my car”, they are ignoring this endless cycle. They could be conceivably paying more to “own” a 2 or 3 year old used ICE car until it is 8 - 10 years old, then do the same all over again. Sometimes an all inclusive lease could be a better option.
So as per the video posted earlier, you need to look at your monthly budget and see what method works out the cheapest. Owning or leasing is the same thing when it’s a depreciating object that has a limited lifespan.
For example, when I did the actual cost per month on a friends £6k runabouts they keep for about 5 years, or until they become beyond economic repair. It worked out they were paying almost £200 per month when depreciation, insurance, tax, maintenance and servicing costs were factored in. That’s before they factored in their £100 per month fuel costs.
I showed them a lease deal (not salary sacrifice), that would get them a new entry level Corsa sized EV with maintenance included. It was about £300 per month when we added insurance but as I pointed out the refuelling costs would make it roughly £70 per month cheaper to run than their now 8 year old Ford Focus.
So all in yes it was around £40 per month more expensive, but they would be in a new car instead of an 8 year old rattly, noisy and smelly petrol that has seemingly endless mechanical issues.
Sorry for the long post.
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0% PCP for a new Model 3 currently. You can buy a car from inventory. Offers ends 31st Aug or when the cars run out.
No conformation from Tesla but the speculation is that a refresh will happen at the end of the year so they are clearing cars from the supply.
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Yeah, the monthlies will increase to account for the lower residuals - trust me, they have very complex algorithms to try and make sure it's you and me who get screwed over, not them
That depends surely? Maybe not directly because of inflation, but the associated rising interest rates combined with higher cost of living is going to mean second hand car buyers are getting higher rates on their finance, coupled with lower disposable income. This will make second hand cars less affordable, reducing demand, and so the prices should fall.
That was pretty much my man-maths when looking at how much my e-Niro lease would cost me.
£325 including maintenance for a 2 year old e-Niro + ~£13 in electric = total £340
vs
£130 fuel + £15 VED + £50 repairs/maintenance + ~£50 depreciation* = total £245
So yes, while obviously the "new" car is still more expensive, it's only costing me ~£100 to drive around in a nearly new EV vs a 14 year old diesel.
Added benefits including being able to drive the other half to work on the 5 days/week the trains aren't running without having to pay the £8 CAZ fee, and not having to worry about destroying the engine due to the majority of journeys being < 5 miles.
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If you want a new/nearly new car every few years then I guess you could look at lease VS buy as something of a gamble - you're paying slightly more to transfer the risk of "ownership" (e.g. loss of value) to the lease company.
If 2nd hand prices suddenly drop, with a lease you "win" because you just walk away and the lease co. take the hit.
If prices stay at the predicted level or increase, then with ownership you "win" because your asset at the end of the period is worth more.
I seem to have "won" so far with my current lease as I took it out just before 2nd hand EV prices dropped, and now the exact same lease is £50/month more expensive!
*rough finger in the air estimate based on the £3k the car cost over 5 years before it becomes too much of a pain to keep on the road
Yeah, the monthlies will increase to account for the lower residuals - trust me, they have very complex algorithms to try and make sure it's you and me who get screwed over, not them
That depends surely? Maybe not directly because of inflation, but the associated rising interest rates combined with higher cost of living is going to mean second hand car buyers are getting higher rates on their finance, coupled with lower disposable income. This will make second hand cars less affordable, reducing demand, and so the prices should fall.
That was pretty much my man-maths when looking at how much my e-Niro lease would cost me.
£325 including maintenance for a 2 year old e-Niro + ~£13 in electric = total £340
vs
£130 fuel + £15 VED + £50 repairs/maintenance + ~£50 depreciation* = total £245
So yes, while obviously the "new" car is still more expensive, it's only costing me ~£100 to drive around in a nearly new EV vs a 14 year old diesel.
Added benefits including being able to drive the other half to work on the 5 days/week the trains aren't running without having to pay the £8 CAZ fee, and not having to worry about destroying the engine due to the majority of journeys being < 5 miles.
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If you want a new/nearly new car every few years then I guess you could look at lease VS buy as something of a gamble - you're paying slightly more to transfer the risk of "ownership" (e.g. loss of value) to the lease company.
If 2nd hand prices suddenly drop, with a lease you "win" because you just walk away and the lease co. take the hit.
If prices stay at the predicted level or increase, then with ownership you "win" because your asset at the end of the period is worth more.
I seem to have "won" so far with my current lease as I took it out just before 2nd hand EV prices dropped, and now the exact same lease is £50/month more expensive!
*rough finger in the air estimate based on the £3k the car cost over 5 years before it becomes too much of a pain to keep on the road
But when does it not qualify as "man maths" but become actual economic facts?
I used actual figures provided by my friend on the costs they provided and not once did I underestimate the lease prices. We went online and did a 3 year lease on Corsa or e-208 for ~10,000 miles PA with maintenance included. What I did do was offest the costs of their current maintenance, servicing and fuel costs that they provide to show them how an all inclusive EV lease with BIK is not that much more expensive. At the time there were also significant benefits for installing a home charger and they have off street parking.
Their reasoning for not considering this option, was because the EVs I showed them only did 200 miles of range at best.
But when does it not qualify as "man maths" but become actual economic facts?
When it's something SHE wants?