Office dude is saying buying a leased car is better than buying one outright!????????

sho_me_da_money

Hi chaps,

I'm thinking of going for a new motor and a guy in the office has just told me to go for a lease on a brand new car rather than forking out the full amount outright.

He said the drawback is that I wouldnt "own" the car but there is one sexy benefit - changing the motor every 3 years!

I was thinking of getting a loan of 10K and purchasing one outright?

In your expert opinions, do you think this is the better option for me considering my circumstances or not?

Thanks,

maninthestreet

No one on these boards know your circumstances, not even the make and model of the car you are considering buying or leasing.

Hintza

And what's an "Office dude"?

Ah I knew a quick google would find the answer:-

Office Dude is a collection of office plug-ins that helps increase the functionality of office products which will ease our daily situations we face with office products.


:rotfl::rotfl::rotfl:

karenx

Either way you still are going to be forking out that money and insurance every month. And cars depreciate in value all the time. So even a 10k loan car will only be worth 9k as soon as you drive out the forecourt. And then a year later it might only be worth about 7k. Same with every car

ShaneUK

It all depends what is covered on the lease.

If anything goes wrong with the car, ie it breaks down - does the lease company cover it? Do they pay the Tax? MOT? Breakdown cover? Insurance? (I know an offer we have through my work does actually cover all this, and more!)

lee131_3

Buy a toyota 3yrs old outright and be done with it

nearlyrich

If you take on a lease and you lose your job you still have to pay the lease fee each month, if you can't you lose the car with no allowance for what you already paid out. If you own a car and lose your income you can sell the car pay off any loans and buy a banger with what's left.

AdrianHi

It depends completely on which car your are choosing and what deals you can find.
When you add up the 35+3 lease payments remembering to include VAT for some cars it can come to less or about the same as buying the car outright and selling it 3 years later - i.e. the cost of depreciation. This usually works out for less desirable higher depreciating cars. The lease company obtains the cars in volume at a discount which means they can supply them at lower lease payments.

You then have to make a choice between being tied into 36 months with one car and having the lease payments to make even if you do loose your job vs. having to borrow £10K or whatever and paying that back which usually means higher monthly payments. If buying a car I would aim for at least a 25% deposit or take out return to invoice (RTI) GAP insurance so that if the car gets written off after it's first year you don't find your self with more loan to pay off than the insurance covers. Most insurance policies pay out original invoice value in the first year on brand new cars, after that it is "market value".

Kurtis_Blue

sho_me_da_money wrote: »

He said the drawback is that I wouldnt "own" the car but there is one sexy benefit - changing the motor every 3 years!


Thanks,

If you own your own car you can change it as often as you like, how sexy would that be??

The thought of being tied into one car for 3 years bores me senseless.

Inactive

You should be looking for a nice 55 plate Micra with a good handbrake.:rotfl:

Mids_Costcutter

Office dude? Are you in California?