Is leasing a car a good idea?

Hintza

Empty_pockets wrote: »

Cheap reliable car = job = income

Unreliable leased car = no job = no income

A new car can still break down, and is in fact likely to have higher repair costs due the the complex systems used these days.

A lease car will in all probability be new and threfore in warranty so if you want a reliable car with some back up you get a new one.

Lease cars are not the same steals that they once were.

OP if you want a Focus or an Astra the lease will generally be more expensive. You need to look for the deal and not the car.

The deal will come from situations such as:-

New model due soon
Poor sales
Excess Stock

Manufacturers don't want to be seen selling loads of cars cheap so cheap leasing disguises that a little.

But manufacturers have cut production and there are still supply problems for various cars and/or components which means there is not excess supply.

If you go for a Ford remember their RRP prices are still verging on the insane so deal smart.

Kilty_2

Peugeot Just Add Fuel has what you want (everything included) - not sure if you can get a car that'll meet your requirements on it for a reasonable price though.

Consider PCP as an alternative to leasing - often lower monthly payment although VED and such are your responsibility.

martinthebandit

You do know that if you put £250 away every month you would be able to pay all servicing, repair and maintenance costs, plus insurance and tax on your current car and keep it running reliably for ever.

And probably have a nice little lump let over when it does,eventually, become time to change.

Leasing a new car is about the most expensive option there is plus you will be swimming in very shark infested waters.

Hintza

martinthebandit wrote: »

Leasing a new car is about the most expensive option there is..

Not necessarily but you have to deal smart but more importantly you need to do your sums.

As for all you guys who only advoacte second hand cars then that is fine but some folk want a new car (for a host of perfectly valid reasons and in many cases just snob value) and if they didn't buy them where would you get your second hand one from.

The biggest draw is the warranty of course.

Kilty_2

martinthebandit wrote: »

You do know that if you put £250 away every month you would be able to pay all servicing, repair and maintenance costs, plus insurance and tax on your current car and keep it running reliably for ever.

.

I'm sure with £250 a month I could keep the old banger I have at the moment running forever - whether I'd want to keep driving something that's worn inside and out by a couple of not so careful owners is a different matter entirely.

If it cost said £250 a month, and I could drive a new car for the same amount, why would I keep spending that kind of money on an old heap?

martinthebandit

Kilty wrote: »

I'm sure with £250 a month I could keep the old banger I have at the moment running forever - whether I'd want to keep driving something that's worn inside and out by a couple of not so careful owners is a different matter entirely.

If it cost said £250 a month, and I could drive a new car for the same amount, why would I keep spending that kind of money on an old heap?

Because it would cost you a lot less than £250 a month so you would be building up some savings towards a better car instead of taking on a permanent debt.

But hey, each to their own.

Weird_Nev

I bought my 'heap' for £700 and run it on substantially less than £250 a month. And it's a 2.8 petrol. I've saved over 2k against it whilst I've been running it.

An older car is a blessing in so many ways: You're not bound to maintain your investment - you can let little scratches slide because they're not hurting the value of a significant investment. You can service it yourself, because at 175k miles a stamped up dealer service book doesn't mean much. If it does break in a big way, then I can either source spare parts from cars being broken or else just walk away and buy something different. Try sourcing a new engine for a New-ish ford for less than £1,000.
My car is worth probably £500 with an MOT ,or else £200 as scrap. But as a tool for getting about it's invaluable. I choose what maintenance to do to it, and right now it's in better nick than when I bought it.

And before you say 'old cars don't have the comfort or features of new ones, and they're unreliable':
15,000 reliable miles over 18 months, including touring trips of scotland and france.
All the toys: Dual zone climate control, leather interior, electric everything and I've put a stereo in it which is a joy to listen to (and can be moved to my next car). It even has iPod control and bluetooth connectivity.
And it's an estate that'll crack 0-60 in under 8 seconds when required.

So do think long and hard before comitting to a 3 year leasing agreement: Just a couple of months of low/no income could see things get really ugly, and ultimately you're renting: all that money for no actual asset at the end of it.

CheltBloke

Hi again,

Now I understand where you are coming from. I now see your point. If you are setup as a sole trader or even a ltd company then there are benefits to running the car through the company, (Speak with your accountant to see how much it can help save you, i believe you end up paying less tax, because you have more outgoings and also you don't pay the tax on the service being provided... Don't know for certain).
However again, if it were me and I was worried about having reliability I would purchase 2 cars, even new cars need to go in for services, have tyres changed and are involved in accidents. You don't want to end up in a accident caused by someone else, but can't get to your place of work.
If you went for the lease car option you could have a "relief car", a rental car for when your car is in the garage. However they run from £25-> £80 per month in addition.
If you want to find lease companies then a good place to start:
fleetnews.

GO TO www fleetnews co uk "slash" compare-contract-hire "slash"


sorry about not posting the link, I'm stillto new to the site.


you can search for rough prices. However be aware that with any oher search site they usually show you the cheapest price with no optional extras (SMR, Relief Vehicle, Insurance etc...)


Make sure that when you speak to the companies that you are completely honest about mileage that you do and if in doubt add an extra 1000 miles to the contract, rather than go over the contracted terms.

Also, a new car costs from 30p per mile (including depreciation) to run it. That's a very small car. An older car does not suffer from depreciation but does suffer from more maintenance bills. However its more along 10p per mile. Those numbers exclude fuel.

I know I'm still trying to force my opinion onto you of your not saving money, for which I apologise, but please don't think that a brand new car will never go into the garage.

gazfocus

Thanks for all the replies. I'd not actually thought of putting £250 a month away to cover possible car repair bills and it's definately something worth considering. However, it still won't help us if we need to find around £1400 to fix the car now.

One option we've been talking about which was suggested by a previous poster is to buy a 'spare car'. We're thinking something relatively cheap to have for emergencies. The only issue with this is that due to having to park on a road outside the house, the car will need to be taxed/insured at all times. This is something I'm not sure we could afford because my current insurance is £107/m.

mikey72

gazfocus wrote: »

Thanks for all the replies. I'd not actually thought of putting £250 a month away to cover possible car repair bills and it's definately something worth considering. However, it still won't help us if we need to find around £1400 to fix the car now.

One option we've been talking about which was suggested by a previous poster is to buy a 'spare car'. We're thinking something relatively cheap to have for emergencies. The only issue with this is that due to having to park on a road outside the house, the car will need to be taxed/insured at all times. This is something I'm not sure we could afford because my current insurance is £107/m.

Treat yourself to a classic.
Cheap to insure, downside is it might start when you need it.
Having said that two of ours are classics, and they're both reliable.