lease car vs purchase

lincs1205

Hi Everyone, just wondered if anyone has any advice or experience regarding this.
Ok in 2007 i got a car from motorpoint financed by black horse on a personal contract programme basically i pay a set amount each month for three years which is due to finish in october this year, then i can either

pay a balloon payment of 4500 and keep the car

hand the car back with nothing further to pay subject to t&cs

or get another car on finance (definately do not want to do this)

I am at present thinking of number 1 ie keeping the car then selling it for something smaller, cheaper, more economical.
However the nhs trust i work for has just joined up to a car lease scheme where you do a salary sacrifice to get a car for three years evrything paid for bar petrol, am just so confused.
Plus i want to save up for a deposit for a house as well.

I apologise for the long post, thank-you for reading.

Any advice greaatfully received

thank-you

ciano125

Will your car be worth more or less than £4500 come October? If it is worth less, then hand it back and walk away, if it is worth more, pay the finance off and sell it.

If you want to save up for a house, buy a banger for £500 and run it into the ground, saving the money you would have spent leasing a new one for the house deposit.

Generally, houses appreciate in value, cars depreciate, so you're better off putting your money into an asset that is going to increase in value over time rather than one that is going to decrease in value.

lincs1205

Thanks for that ciano, the car has a minimum future guaranteed value of 4532 it is also an import, my gut feeling has been telling me to hand it back get a reasonable runaround for 1 - 2 grand. any thoughts on anything cheapish to run and maintain i will mainly be using it to go to and from work which is probably a round trip of 30 miles per day 3-4 x a week, i do 12 hour shifts as a nurse

am going to start putting between 6-700 away each month as from this payday.

MX5huggy

You need to get the numbers on the NHS lease. I have seen some of these with stunning prices, that are difficult to justify not taking if you need a car.

plane_boy2000

Perhaps if you could post some NHS lease examples we could offer advice as to if its a good deal. As MX5 says above some of these schemes can be such good value that they are cheaper than running an older car

lincs1205

thanks mx and planeboy, i think what i will do is give nhs fleet solutions a ring on monday and see if i can get a couple of quotes as to what cars are available on the scheme, basically the money will come straight out my payslip so it won't even come to me which is probably a good thing, one thing i do understand at the moment is that my tax code would be changed. Thanks for the advice so far. if anyone has got any figures/quotes for the scheme and they could enlighten me that would be great.

ciano125

lincs1205 wrote: »

the car has a minimum future guaranteed value of 4532

I meant is it worth more or less than that on the open market? If it is worth quite a bit more, then pay the finance off and sell it, keep the "profit". If you can buy the same make and model, year, mileage etc for less, let them have it back.

lincs1205

I think it is going to be worth less to be honest mainly because it is an import, some of the dealers i have been to have said that it will probably only be worth about 4500 but that it is difficult to say at the moment with it being about eight months away, i have tried getting valuations on glass etc but they can't pick the registration or the correct model up.

it is a volkswagon golf plus s 07 plate registered in march 07, it has rear parking sensors, bluetooth, cd player.

if anyone has any ideas how i can get an accurate valuation i would be grateful, i appreciate no-one can look in a crystal ball and predict the future but a ball park figure would be a start.

Many thanks

ukjoel

NHS discounts from manufacturers are pretty hefty due to the volume they take. If the lease company are as competitive and passing on all the discount the lease option may prove to be a good deal.

calebdylan

its better to buy a car in spite of getting it for lease cause the usage of car is not a limited one and you have to share your money not only for fuel but also for drivers charge service tax and you have to pay for the owner of the car etc etc its better to buy a one

plane_boy2000

calebdylan wrote: »

its better to buy a car in spite of getting it for lease cause the usage of car is not a limited one and you have to share your money not only for fuel but also for drivers charge service tax and you have to pay for the owner of the car etc etc its better to buy a one

Disagree - if you get the right deal you can often lease for less than the depreciation over the same period on a car you buy.

Why is a leased car any more limited in its use?