Car leasing - newbie

xoleeb

explain how i am not a winner then...my last car was a focus - paid 12K for it brand new - 3 years later sold it for 3750...i lost 8250 on it plus the cost of the finance during that 3 years I am in no better place than if I had leased a car over three years that cost me about the same as what i lost in depreciation/finance costs...never mind the £200 per year Road fund licence...swings & roundabouts...

rodenal

There's no reason it can't work for you, just do the sums check out the model youre buying at 2 or 3 years old as appropriate and make sure you aren't paying too much of a premium.

Pcp could also be an option, again check out cars as old as the end of the term you're looking at on autotrader etc, knock some off for haggling with a buyer and check if it makes financial sense to you.

Cars lose money, all of them unless you buy something either very new and desirable with a waiting list or buy something old and appreciating. Just make sure you can afford to get rid of it should the worst happen with work etc etc

blacksta

xoleeb wrote: »

explain how i am not a winner then...my last car was a focus - paid 12K for it brand new - 3 years later sold it for 3750...i lost 8250 on it plus the cost of the finance during that 3 years I am in no better place than if I had leased a car over three years that cost me about the same as what i lost in depreciation/finance costs...never mind the £200 per year Road fund licence...swings & roundabouts...

it is always a tricky one with finance or PCP. No doubt people lose money on car but the game is to try minimise the loss either by buying the new/slighty old car car outright without any finance , like you mentioned your car lost money the day you sold it - what if you had kept the car for 3 years more.

I have done the sums - if you had a taken the car on PCP i am very sure it would have cost slightly more.

£300 * 38 payments = 11400 ( i am using the average pcp monthly payment)

For example a brand new lexus IS200 cost about 25K but within two years the car is only worth 12k
http://www.autotrader.co.uk/search/used/cars/lexus/is/postcode/rm204xw/radius/1501/sort/priceasc/maximum-age/up_to_2_years_old

. On pcp same car will cost 450 * 38 payments- £17100 - I absolutely think it makes perfect sense for me to save up the 450 and buy the car outright with the plan of using for at least 4 or 5 years.

what do u think - we are all here to save money

dannyjebb

I work for the NHS and they have just made there lease scheme available to all staff. the monthyl payment includes tax,MOT,servicing, fully comp insurance, breakdown cover and warranty, Our car insurance has just jumped to 1000 a year on our 6 year old scenic and so we are looking at getting a brand new car for about 200 per month with no deposit needed. So take off the 100 per month for the insurance we would pay anyway and we can get a brand new car with everything included for 100 quida month. That seems like a good deal to me

blacksta

[QUOTE=dannyjebb;45029138]I work for the NHS and they have just made there lease scheme available to all staff. the monthyl payment includes tax,MOT,servicing, fully comp insurance, breakdown cover and warranty, Our car insurance has just jumped to 1000 a year on our 6 year old scenic and so we are looking at getting a brand new car for about 200 per month with no deposit needed. So take off the 100 per month for the insurance we would pay anyway and we can get a brand new car with everything included for 100 quida month. That seems like a good deal to me [/QUOTE]

Fantastic deal if only it applies to Non NHS workers. It is definitely been subsidised by the Tax Payers Monies . Enjoy -

dannyjebb

blacksta wrote: »

Fantastic deal if only it applies to Non NHS workers. It is definitely been subsidised by the Tax Payers Monies . Enjoy -

There has to be some perks to working for the NHS and BTW am not some office wroker who does nothing just a lowly band 4 pharmacy technician

bluesnake

xoleeb wrote: »

I have just taken out a 3 year lease on a new focus - book price £18,810 including all the extras.

Is one of the 'extras' a free Merc, cause a focus one year or less old is selling for under £8000 in car giant - £10k depreciation in 1 year!!!

http://www.cargiant.co.uk/Ford/Focus/results-Ford-Focus.asp

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the Alpha does work out better, but you have just paid £16000 and have no car. Still cheaper and more value than a wedding

if you want to buy a 4 year old one, try the link below for around £11500
http://www.cargiant.co.uk/Alfa_Romeo/Spider/results-Alfa_Romeo-Spider.asp

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Firstly, who in their right mind ever pays full asking price. Secondly, should you wish to purchase outright your car, they ask a steep (grossly inflated) price for the old car. Thirdly, if you get a lemon, then tough - my friend mention previously had a Ford C Max (this model was just released weeks earlier, and his third leased car) - and was sooo glad when the lease ended as calling it a lemon would be kind.

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Dannyjebb, exactly what make and model of car do you get for £200 a month, or £2400 a year?

Personally, I would rather take a three year old one, and keep it for at least 3 years, or even longer. Think my current car is 20 years old this year (k reg), and it cost me £7000 to buy 17 years ago.

k3lvc

bluesnake wrote: »

Is one of the 'extras' a free Merc, cause a focus one year or less old is selling for under £8000 in car giant - £10k depreciation in 1 year!!!

http://www.cargiant.co.uk/Ford/Focus/results-Ford-Focus.asp

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the Alpha does work out better, but you have just paid £16000 and have no car. Still cheaper and more value than a wedding

if you want to buy a 4 year old one, try the link below for around £11500
http://www.cargiant.co.uk/Alfa_Romeo/Spider/results-Alfa_Romeo-Spider.asp

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Firstly, who in their right mind ever pays full asking price. Secondly, should you wish to purchase outright your car, they ask a steep (grossly inflated) price for the old car. Thirdly, if you get a lemon, then tough - my friend mention previously had a Ford C Max (this model was just released weeks earlier, and his third leased car) - and was sooo glad when the lease ended as calling it a lemon would be kind.

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Dannyjebb, exactly what make and model of car do you get for £200 a month, or £2400 a year?

Personally, I would rather take a three year old one, and keep it for at least 3 years, or even longer. Think my current car is 20 years old this year (k reg), and it cost me £7000 to buy 17 years ago.

But you're not comparing apples with apples.

In my Alfa example the car was brand new - mine was the first one registered by Alfa UK and a discount was non-existant. True I paid £16k and have nothing (other than memories and some brill pictures) to show for it but the alternative was I could have spent £35k and had £10k to show for it (and no way of making that £10k magically grow to £20k). There's also no way I'd buy a 4yo version without an Alfa UK warranty.

For the Focus example yes discounts are available but without knowing the model you can't compare - there's a massive differential in prices.

For reassurance following the Alfa I've 'invested' in a 5yo low mileage Merc for £15k - a far more 'sensible' option than the Alfa but fits with the moneysaving (2 years warranty/servicing/european breakdown included) and with another 2 years/40k miles I'd expect to get £10k for it.

acers49

xoleeb wrote: »

I agree with the "fors" - I have just taken out a 3 year lease on a new focus - book price £18,810 including all the extras. I have paid £719 upfront and have 35 monthly payments of £239.99 so a total after three years of £9118. If I was to have bought the car I would have had to take it on finance - so something along the line of £2500 deposit and so over 36 months would have been around £480 per month - I would have lost well over the £9k I will have paid leasing the car in depreciation and I have kept my monthly payments and deposit to an affordable level. So I believe in my circumstances leasing is good for me - A brand new car - no road tax to fund - under warranty for the length of the lease and affordable...

We've been leasing cars(new one every 3yrs) for the past 9 years & with not having to worry about servicing, tyres,tax etc, it't been good for us.
Only problem we have now is the company we are with has stopped doing personal leasing(only found out when I rang to enquire about new car) nice of them to let us know!!!! so now need to find another reliable company in the next few weeks, not easy with so many out there, any recommendations anyone???

DKLS

dannyjebb wrote: »

I work for the NHS and they have just made there lease scheme available to all staff. the monthyl payment includes tax,MOT,servicing, fully comp insurance, breakdown cover and warranty, Our car insurance has just jumped to 1000 a year on our 6 year old scenic and so we are looking at getting a brand new car for about 200 per month with no deposit needed. So take off the 100 per month for the insurance we would pay anyway and we can get a brand new car with everything included for 100 quida month. That seems like a good deal to me

My Mrs has just been offered one of those lease deals, and having seen the prices they look very attractive.

e.g.

Golf GTi 2.0 TSi 3 dr Petrol - 10k Milage = 417 a month all in
Mini Cooper S 1.6 3dr petrol - 10k mileage = 281 a month