Car Lease or Purchase?

zincoxide

I'm just about to get promoted at work (yeah!!!) which comes with a £4000 pay rise but I lose my company car. Bonus is I'm £246 better off without it each month but I'm still going to need a car.

So, to avoid the Hire Purchase, Car Loans etc route. I was thinking of leasing a car for around £300pm with a maintenance contract.

So where is the best place to look for deals? There are so many different companies with wildly varying prices that I've got lost in it all.

Was thinking of getting a Saab 9-3 Tid 150 Vector Sport or Linear Sport.

What do you think? Or is there another route I should maybe try?

Rachel85

Have a look at https://www.contracthireandleasing.com

However I would say that hiring a car is not usually the best route unless you have your own business (in which case it can make sense for tax reasons).

Also, you will need to think about insurance. I have a contract hired car and had terrible problems because you are neither the legal owner or the registered keeper of the car. I found that Direct Line were willing to insure me (and I believe Sainsburys will consider this situation too) but it was extremely difficult and time consuming - plus I am not getting cheap insurance I tell you that!

highguyuk

Id personally buy one - then its your own car at the end of the day instead of someone elses.

You could take up a maintenace insurance perhaps if that worried you?

You gain £246 per month cos of the rise, dont lose £300pm to get a car. Not worth the promotion then! :-P

zincoxide

OK, I've had another look into this and the best quotes are as follows:

Smart Lease (.co.uk)

Saab 1.9 Tid 150 Linear 4 Dr Saloon

Deposit £894.99
35 Payments £298.99
Includes road tax at £155pa

Give the car back at the end of the 3 years and get a new one!

To buy, best quote:

Deposit £500
1st Payment: £690.84
34 Payments: £565.84
Last Payment: £590.84

Total cost of interest £2069.79
Total amount payable £21020.35

So, it looks to be a better deal to lease the car as monthly payments are almost halved, I'd want to trade the car in 3yrs anyways & I'd avoid interest charges.

What do you think?!

highguyuk

End of 3 years, you would actually own the car though...

zincoxide

I'd own the car after paying £2000 in interest fees, with a resale value of around £6k.

So I'd have about £4000.

Or I could place the difference each month into a savings account at £267pm that would be £9612 after 3 years without interest.

Of course I'd probably only end up saving around £150 extra a month but even still, that gives me £5400 without interest, a lot less per month for around the same return.

Insurance is only £10pa extra for it being a lease car so that's not an issue.

Or am I missing something here - has anyone else worked this out?

Seems like a very good idea but I'm convinced I must be missing something.

zincoxide

Bump :rolleyes: I am the invisible man!

zincoxide

No-one got an opinion on this at all?

burbs_2

zincoxide wrote:

No-one got an opinion on this at all?

Leasing is ideal if you want a quick fix so to speak. You pay small amounts on the car, run it around and then hand it back without any worries at the end of the day, and move swiftly onto the next one. Its an ideal situation.

I would defiantly be doing this if i was in your situation.

burbs_2

What sort of mileage was that quote for?

zincoxide

Thanks Burbs - I'm just wondering why there aren't more people doing this?

Seems like the ideal solution for moneysavers that want a new car!