Leasing V Buying?

Lifeisbutadream

wnc1981 wrote: »

Leasing is a way to manage depreciation effectively and not worry about the possible hit you might suffer over the years. That's the leasing companies problem. Leasing enables you to apply a monthly cost to something that is only ever going to cost you money.

Equally, leasing is a good way to get unseen discount on the car. Most leasing companies buy at bigger discounts which can reduce the monthly cost compared to a loan. Don't forget you usually get your road tax included too.

I just leased my car from the guys at 123 car leasing, 123carleasing.co.uk, really good experience of it too.

Thanks for the completely unbiased point of view Mr 123carleasing.co.uk

Gordon861

I've always thought leasing is only really useful if you are a business or just want the car for a short time.

Just took a quick look at '123' and their deals are based on a 3 year lease.

An example, Citroen C1
3 year lease = £140 per month = £5040 + vat = £5796 (using 15% vat)
New C1 is about £8000 (or less depending on deals)
There is a very good chance the C1 will be worth at least the £2k difference at 3 years old.

Personally I'm not sure these lease deals are that great.

ukjoel

RVs on Ford Focus are around 30-35% after 3 years 60k.
If the car is lowish mileage (below 60k) and you have looked after it I would resist the urge to change it and just take out a loan and purchase it outright over the next 3 years.
I see loads of 10 year old Focus on the road and your one will be Mark 2 and better engineered.

Resist the urge to change it - thats what Ford options sucks you into doing. DONT DO IT. Keep the car, buy an aftermarket warranty for a couple of hundred quid and you have peace of mind motoring.

Lifeisbutadream

ukjoel wrote: »

RVs on Ford Focus are around 30-35% after 3 years 60k.
If the car is lowish mileage (below 60k) and you have looked after it I would resist the urge to change it and just take out a loan and purchase it outright over the next 3 years.
I see loads of 10 year old Focus on the road and your one will be Mark 2 and better engineered.

Resist the urge to change it - thats what Ford options sucks you into doing. DONT DO IT. Keep the car, buy an aftermarket warranty for a couple of hundred quid and you have peace of mind motoring.

It has 21K on the clock... I think you have a very good point there..

Hintza

Gordon861 wrote: »

Personally I'm not sure these lease deals are that great.

Have you not read any of the threads on leasing?

Of course they are not great for many cars but can be areasonable option if you require a new car and don't go for a popular model.

You have taken one (over priced example) as with all things in life if you are lazy you won't get the best deal. To find good deals require a bit of effort.

Gordon861

Hintza wrote: »

Have you not read any of the threads on leasing?

Of course they are not great for many cars but can be areasonable option if you require a new car and don't go for a popular model.

You have taken one (over priced example) as with all things in life if you are lazy you won't get the best deal. To find good deals require a bit of effort.

I was as much responding to the 'advert' for 123 as to the OP, so I picked a car a had some knowledge of to see how the prices worked out.

Of course if I was to go this route myself I would have a major shop around.

AdrianHi

BMW's are usually just a bit too expensive on lease to be better than buying and selling at 36 months.
For a BMW and other cars holding about 42-44% or more of their value at 36 months old your best off buying pre-reg /ex-demo at about 6 months old 25% off new price and selling on as you get near 36 months old and doing it all again. Alternatively buy at 6 years old when depreciation has slowed right down and put up with more maintenance and hope you don't get a big scary bill.
If you are loosing 2-3K a year on a Ford Focus you must be buying new. If you must have new leasing could well be better and has been when I've done the sums in the past. Add up 3 + 35 monthly payments (remember to account for VAT) and work out if it is more than what you loose in depreciation on the car in question. https://www.parkers.co.uk is a good enough guide to the 3 year old trade in value for this excercise.
A Focus / Mondeo works out well bought pre-reg / 6 months old too though, they loose a lot up front but not as much as a 1 series / 3 series (and similar) after that.

Why not keep the car in year 4 and 5?
You could but for BMW/Audi and similar you will be paying almost the same in depreciation month by month as you were months 6 to 36 amd now you paying for MOTs, breakdown cover, extended warranties or taking the risk of failures costing you plus wear and tear on the car (brakes etc.) starts to happen depending on how you use the car. Makes year 4 and 5 little cheaper and may be more expensive that the earlier years.

rosannaclarke

I have searched and searched all the threads and I can not find one post that recommends car leasing companies! There are many on Google, but if someone could recommend some companies that aren't too dodgy (I know they are all trying to make money out of you) then that would be great.

Also can you go direct to dealers eg Volkswagen dealer to lease a car?

Any help appreciated! I have read all the advice but need to approach some companies first for quotes before I can work out if it's a good option or not.

Thanks,
RC

thescouselander

AdrianHi wrote: »

BMW's are usually just a bit too expensive on lease to be better than buying and selling at 36 months.
For a BMW and other cars holding about 42-44% or more of their value at 36 months old your best off buying pre-reg /ex-demo at about 6 months old 25% off new price and selling on as you get near 36 months old and doing it all again. Alternatively buy at 6 years old when depreciation has slowed right down and put up with more maintenance and hope you don't get a big scary bill.
If you are loosing 2-3K a year on a Ford Focus you must be buying new. If you must have new leasing could well be better and has been when I've done the sums in the past. Add up 3 + 35 monthly payments (remember to account for VAT) and work out if it is more than what you loose in depreciation on the car in question. www.parkers.co.uk is a good enough guide to the 3 year old trade in value for this excercise.
A Focus / Mondeo works out well bought pre-reg / 6 months old too though, they loose a lot up front but not as much as a 1 series / 3 series (and similar) after that.

Why not keep the car in year 4 and 5?
You could but for BMW/Audi and similar you will be paying almost the same in depreciation month by month as you were months 6 to 36 amd now you paying for MOTs, breakdown cover, extended warranties or taking the risk of failures costing you plus wear and tear on the car (brakes etc.) starts to happen depending on how you use the car. Makes year 4 and 5 little cheaper and may be more expensive that the earlier years.

I think this is good advice. I am looking to change the car next year and I thought long and hard about leasing. In the end I came to the same conclusion as AdrianHi and now it looks like I probably go for a low milage Ex Demo instead.

The_Wallet_Dr

Lifeisbutadream wrote: »

Having just lost around £6000 on our Focus that we bought two years ago, I am wondering whether it might be more cost effective to lease rather than buy our next car.

Anything I should think about?

If you havn't sorted a car yet and need further advice please ask. I have over 40 years experience in the motor indusry including 14 yrs leasing experience.