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leasing versus buying - advice required

peterx666
peterx666 Posts: 19 Forumite
in Motoring
I want a Vauxhall Zafira car and I have been looking at leaseing

I am confused:cry::(

If say I buy a car for £10000 in 4 years it will depreciate sya £1000/year so I am left with a car valued at £6000

......................................................................£6000
less 4 years tax @ 170 = £680
Must insure both lease and buy cars so thats out of equation
Less the interest lost on £10000 @ 4% = another £1600

Take it all off and I am left with a car worth £3720 in real terms

If I lease it over 4 years I will spend say £8,400 in total
They pay the road tax but I pay insurance

So to buy I spend £10,000 and lease I spend £8400 (£1,600 more too buy )

So in the end I am better off buying to the tune of £2,120 in real terms:j

Am I correct or am I going mad - leasing seemed to be such a good idea!

Can anyone advise me

Martin
Help:money:

Pete
poor-pete-needs every penny:rotfl::kisses:
«1

Comments

  • MX5huggy
    MX5huggy Posts: 7,173 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I presume you are looking a used at £10000? so you are not really comparing like with like?

    You are probably under estimating the depreciation What Car say it has 29% retained value over 3 years (from new).

    What's you mileage? You don't want to be paying excess mileage charges.
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Leasing is a good idea if you are changing that car after the three years. Because you just start again. Obviously if you keep the car, you're saving from that point onwards.

    I have my car on PCP, have seen some stonking deals on lease cars but I have an addiction to the MINI and got a really great deal on a nearly new one recently. PCP is a little more like leasing but I've saved a bit on the depreciation already.

    And I can sell the car privately if I want more cash for the car.

    Audi dealers couldn't touch the deals I was looking at on lease, not even with the same finance companies! Well worth looking at, especially if you might be flexible with your choice of car because there are bargains that pop up all the time.
    Everything that is supposed to be in heaven is already here on earth.
  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    It could very well work out cheaper, but I would be surprised if this was the case with the Zaffira.

    The best advice I would give would be ti draw up a short list of suitable cars and the go for the best deal. Don't pick the car and try and get a deal to fit.

    As someone above has said remember excess mileage charges and do you really want it for 4 years? 3 would be my maximum on a lease.
  • Money_Grabber13579
    Money_Grabber13579 Posts: 4,501 Forumite
    Part of the Furniture 1,000 Posts Newshound! Name Dropper
    peterx666 wrote: »
    I want a Vauxhall Zafira car and I have been looking at leaseing

    I am confused:cry::(

    If say I buy a car for £10000 in 4 years it will depreciate sya £1000/year so I am left with a car valued at £6000

    ......................................................................£6000
    less 4 years tax @ 170 = £680
    Must insure both lease and buy cars so thats out of equation
    Less the interest lost on £10000 @ 4% = another £1600

    Take it all off and I am left with a car worth £3720 in real terms

    If I lease it over 4 years I will spend say £8,400 in total
    They pay the road tax but I pay insurance

    So to buy I spend £10,000 and lease I spend £8400 (£1,600 more too buy )

    So in the end I am better off buying to the tune of £2,120 in real terms:j

    Am I correct or am I going mad - leasing seemed to be such a good idea!

    Can anyone advise me

    Martin
    Help:money:

    Pete

    The only thing you've missed out is that if you buy the car, you've got something to sell at the end, whereas with leasing, you don't. So in essence, using your calculations, the car costs 6280 to buy against 8400 to lease, so a saving of 2120 if you bought the car!
    Northern Ireland club member No 382 :j
  • MotorIndustryExpert
    MotorIndustryExpert Posts: 13 Forumite
    In relation to the above, if you never keep your car after 3 years, and always trade in. Then leasing is a great idea if it works out. There is no purpose in owning the car after three years as you wont be freeing up that money and not having a car.

    I'm a great beliver in leasing as long as the figures add up. There are some fantastic value deals out there at the moment. Take a look at www. contracthireandleasing .com Its a great site to compare lease deals as both Dealerships and Independant brokers advertise on here. If you end up dealing with an independant broker, make sure for your own piece of mind that they are a member of the BVRLA for added protection.
    Best Regards,

    MotorIndustryExpert
  • peterx666
    peterx666 Posts: 19 Forumite
    MX5huggy wrote: »
    I presume you are looking a used at £10000? so you are not really comparing like with like?

    You are probably under estimating the depreciation What Car say it has 29% retained value over 3 years (from new).

    What's you mileage? You don't want to be paying excess mileage charges.

    So what you are saying is that the car I bought for £10,000 would only be worth £2900 after 3 years:shocked:

    Thats a stonking £2300 depreciation each year

    Ah but does that include the first year! Both the lease deal and the buying calculation is based on a one year old (2008) car

    Whats the depreciation on the years after the first year?

    pete
    poor-pete-needs every penny:rotfl::kisses:
  • oh_no_5
    oh_no_5 Posts: 53 Forumite
    Have a look at this graph to see the depreciation on a zafira.

    http://www.whatcar.com/depreciation-index.aspx?RT=733&ED=48256&U=0

    £13000 in ONE year.:eek:
  • peterx666
    peterx666 Posts: 19 Forumite
    Doozergirl wrote: »
    Leasing is a good idea if you are changing that car after the three years. Because you just start again. Obviously if you keep the car, you're saving from that point onwards.

    I have my car on PCP, have seen some stonking deals on lease cars but I have an addiction to the MINI and got a really great deal on a nearly new one recently. PCP is a little more like leasing but I've saved a bit on the depreciation already.

    And I can sell the car privately if I want more cash for the car.

    Audi dealers couldn't touch the deals I was looking at on lease, not even with the same finance companies! Well worth looking at, especially if you might be flexible with your choice of car because there are bargains that pop up all the time.

    The deal I have looked at is for 4 years

    How can you be saving if you keep the car?

    Whats PCP?

    Pete
    poor-pete-needs every penny:rotfl::kisses:
  • peterx666
    peterx666 Posts: 19 Forumite
    MotorIndustryExpert wrote: »
    In relation to the above, if you never keep your car after 3 years, and always trade in. Then leasing is a great idea if it works out. There is no purpose in owning the car after three years as you wont be freeing up that money and not having a car.

    I'm a great beliver in leasing as long as the figures add up. There are some fantastic value deals out there at the moment. Take a look at www. contracthireandleasing .com Its a great site to compare lease deals as both Dealerships and Independant brokers advertise on here. If you end up dealing with an independant broker, make sure for your own piece of mind that they are a member of the BVRLA for added protection.

    but if I buy the car from them after the lease is over at least I have an asset I can sell? suppose it depends on the price you buy it for (dont know if it will be cheap or just list price)

    Looked at the site you mentioned but they cant get anywhere near the deals on hippoleasing.co.uk

    What is the BVRLA? must check if hippo are in it.......

    Thanks

    Pete :D
    p.s. if you look at the hippo site - what do you think?
    poor-pete-needs every penny:rotfl::kisses:
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    peterx666 wrote: »
    The deal I have looked at is for 4 years

    How can you be saving if you keep the car?

    Whats PCP?

    Pete


    You're saving because you don't have to pay out for a new car!

    PCP is Personal Contract Purchase (I think) It works in a similar way to leasing in that you are paying interest on the full amount on the car and plus the capital on the depreciation but the car is in your name. At the end of the term, you hand the car back like a lease or you pay a lump sum OR you use it to trade in against another car as the probability is that the car is actually worth more than the Guaranteed Future Value that you were given at the beginning of the contract.

    Alternatively you can sell the car privately (as it you'd get more than trade in) though the buyer will need to pay the finance company the outstanding balance, not you - on order for them to safely purchase the car. You'd get the change.
    Everything that is supposed to be in heaven is already here on earth.
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