Car leasing vs buying

Interested to know if people have a good experience of leasing. I'm thinking about cashing in on my current car whilst it has any value left in it, but do I put this towards a new car on lease buy, a 'new' second hand car or just lease? I do about 8k miles a year mostly longer trips.

Have people got stung on the condition of the car when returning a lease car?

Appreciate that each and every way it's money down the toilet.

 

It's all down to personal circumstances and what car you want.
There's some very good lease deals out there, there's' also some shocking ones. Anything over £40K new and you'll get stung on extra tax.

I've always been of the mind of saving up till I can afford what I want then buying it outright. That mindset was somewhat dented by the last Meistermobile and the issues around that as well as poor dealership experiences. I for one will never buy another VAG motor again.

What's your budget requirements or short list. Have you got an estimate for yearly mileage? Many on here will be able to assist.

 

8k miles a year I would definitely lease. No question about it. Long distance miles or Sainsburys/school runs make no difference unless you want to keep the car for ever.
If you drive 12k miles or more a year then it's a discussion.

 

Agreed. The issue is when you buy a car with the intention of keeping it for years and it turns out to be a dog. There is a get shot of it safety net with the hire purchase type agreements which is somewhere in the middle of the two options. After the 3 or 4 year term you then get the option to buy. If the rental period was cheap and its close to market value it's worth going for it as you obviously know the history.

 

You lefties are so lazy! What about a 3rd option - make your own car? That's what we did in my day.

Get some old pallets, a rusty lawn mower, some old garden chairs and start tinkering

 

I've both bought and leased

I lease particularly if I'm doing a lot of miles through work

Providing you take some care of the car you don't get stung when you return it, if you mistreat it and return it in a state, mashed alloys, bumper hanging off..... then yes you will get billed and deserve to

Putting money into a car is a bit of a mugs game these days to be honest, better to lease a car and leave your money in an ISA

I buy if I don't intend to do so many miles, and usually look for a pre registered from a dealer with huge discounts

If you lease don't base your short list on vehicle value, lowest deals almost always will be on most popular models - 1 series, 3 series, A class etc also big deals on run out models

 

just do the sums based on a three year period.

Used a personal leasing comparison site to get a quote and calculated the three year cost
Asked the dealership to provide me with their leasing costs and also a PCP deal
Used webuyanycar to get an estimate on my current car

There was a 2.6k difference over a three year period between the three options - the dealership offered me a 2.2k reduction on the car and chucked in mats/petrol etc

The lease and PCP final payment were both based on 10k miles per year so, in effect, there is no difference

 

Cheers, for the food for thought. I'm tempted by leasing so as to have a car under warranty. I've normally bought a nice second hand car, but it does mean that the bills are your own and it's not like you get much back on it after a few years of use. My only worry with leasing is that as a family we are hard on a car and take it to muddy and scratchy lanes to do things with bikes.

However it does also seem that cars are likely to all develop their tech in the next few years. Not sure it's wise to sink much money into a new petrol.

Moog is probably correct and I should knit one from wholemeal pasta.

 

There are some benefits to a lease on your taxes here in the states if you can claim it as a business expense. Our tax code is stupid but you get to know the loopholes that matter to you.

Also, there is this
"I found the car I drew when I was 5"

 

This method has always served me well.

Buy any 3 to 4 year old German car for around 10-15K. Depending on the spec you want.

Doesn't matter when you dispose of it (I usually keep mine for a further 2 years) the depreciation will cost you around £125-£150 per month when you sell, which I'm assuming is less than any leasing deal?

You get a decent & reliable car, one that you only need to service once a year & put new tyres on. Perhaps most importantly no worrying about mileage, small scratches & other penalties the leasing deal will impose on you.

Personally I also think the leasing deals are too restrictive when I have looked into them briefly in the past & you never really know the true total cost of ownership. I would never look at the headline monthly figure, I would always factor in 20% more when you hand the keys back.

 

It sounds to me like you need to lease a bog standard cheapo hatchback and then go and buy a 2nd hand Toyota Hilux with a king cab or soemthing.

 

The only time I've heard someone in the UK talking about leasing was one of our local mechanics - Mr Robin B'stard who just after telling an extremely unsatisfied customer that his 3 year-old Merc G-class "...wasn't worth repairing..." and stinging me £75 for brake pads (that he actually didn't replace) was that there was no point in owning a car any more because his daughter was leasing a "top of the range" Peugeot for £150 month "...just pay the petrol and insure it and that's that..."

FWIW I think the best car ownership solution is bangernomics from Enfield car auctions - then drive them into the ground.

 

Me and the Mrs both need our own cars for our work. I always buy Mrs Diamond a very low mileage one owner car that's less than 2 years old for under £8K, then take on her old one. I'm currently driving the Renault she owned from 8,000 miles and it's now about to hit the 90K mark. She's got a low mileage Vauxhall which I'l inherit when mine dies or the diesel tax gets silly.

Personally I wouldn't lease or buy new, both are just throwing cash down the drain.

 

Wait 5 years , and the concept of owning a car will be dead .

Robot cars will take you wherever you want , whenever you want at a fraction of the cost of owning or leasing a car .

Until then , spunk all the money you would have spent on cars over the next 50 years, on a Brand new Ferrari and enjoy it while you can .

 

Autonomous vehicles will radically alter transportation and architecture trends over the next 50 years, and it's all starting to happen now. The next car you buy may be the last car you buy (unless you have specific vehicle needs like a construction truck or mobile kitchen, etc). Imagine the real estate freed up by no longer requiring car parks? Optimized traffic management is what I'm waiting for...

 

It will be nice to have residential streets free from parked cars lining each side . A bit like the old pictures from pre war streets where there s no cars .

 

The only sensible thing to do if buying new is to hold on it it for say 10 years, I bought a new XF luxury model for £29000 (managed to get around 5k off) intend to keep it for 10 years, the mileage will only have about 60-70,000 on it and it it's then worth say £4000 it will only have cost me £2500 per year £208 per month for a good reliable luxury car.

So far it's three and a half years old and had no problems whatsoever (touch wood)

 

Yep, often servicing is included for a few years, then you consider no MOTs etc and likely reliability and it;s worth while.

I plan the same the Meistermobile will be with me 10 years plus.

 

Go for the economy/luxury of two wheels:

 

Funnily enough, Friday before last I got my first personal lease.

£213 a month, £1200 deposit, Volkswagen Golf TDI 1.6 SE Nav Edition.

Sold my 09 plate CAT D Fiesta for £1200 cash, that covered the deposit. 24 month contract. 20k mileage allowance.

£2556 a year. £5112 in total over two years. It's nothing really? Give it back after 2 years and upgrade to a nice little C-Class at 24 if I'm in the position that I'm hoping I will be.

Can't see anything wrong with it to be honest, have to keep the car in great condition but so you should!

 

And a small FYI:

The car doesn't have to be perfect, it has to match up to the Fair Wear & Tear standards.

Chips Small areas of chipping, including door edge chipping are acceptable. If the areas of chipping require the entire panel, bumper or trim to be repaired or repainted, the damage is not acceptable.

Dents (up to 10mm) are acceptable provided there are no more than two (2) per panel and the paint surface is not broken. Dents on the roof or swage line on any panels are not acceptable. S

Scratches and abrasions up to 25mm are acceptable, relative to the vehicle’s age and mileage, and provided the primer or bare metal is not showing. Moulding, wheel arch trims.

Scuffs and scratches up to 25mm are acceptable provided the moulding or trim is not broken, cracked or deformed.

That's fairly reasonable IMO.

 

Just out of interest @Squibba - what does the leasing do to your insurance? Any special deals? That 20k mileage is it per annum or contract?

 

I am considering leasing next May.
Thank you all for your input as I am still unsure of which option to pursue.
My Father was with Diamond and always said you started losing money on a new car as soon as you drove it away.
I would struggle to keep my mileage below 10,000 a year and can see penalties being imposed.
I've always fancied a Vespa but difficult to find space for the balls and rackets I think!

 

Not an issue

 

Plus you're not obliged to take it back to VW. At the end of the deal you can take it wherever you want. My missus chopped in her Peugeot 208 about 2 months from the end of its 3 year lease for a Skoda Fabia and they weren't even fussed by a fair sized crease in the driver's door.

 

Nothing? It's over £4000 more than I've spent on my own high mileage car in the last 2 years, and that includes 2 services, 2 MOT's, a timing belt, 4 new tyres and a problem with the automatic handbrake.

 

Fool. Aren't "ducks" more to do with cricket? The OP mentioned a racquet sport.

 

OK then this:

 

3 cars over the last 15 years, all of them gifts and less than a grand spent keeping them roadworthy ..... I win

 

I was wondering that also. Surely it's for the duration of the contract? 20k per annum would be very generous (and very unusual) for a lease.

 

Per contract, 10k a year.

Insurance wise I'm a 21 year old male living in Watford so the £113 a month I pay for insurance is probably WAY over what most on here pay.

Saying that, switching from a 1.4 petrol 09 plate Fiesta to 1.6 TDI Golf my premium only went up by £20..

I reckon if you're around 40/50 and you've got a number of year NCD then they might even chuck in insurance to close the deal.

https://www.whatcar.com/car-leasing/ - The best deals on there IMO.

 

But mine has Spotify built in

All jokes aside, it's not for everybody of course and can definitely be considered a luxury but it's a luxury I'm happy to take, no MOT, no road tax, much much better on fuel and I HATE maintaining cars so having a new car just offers me a peace of mind that I'm happy to pay for!