Leasing a car vs keeping old car

Moomum

After a chat with his boss, OH has come home from work and decided he is putting the car on autotrader this weekend and looking into leasing one. We have a 02 reg focus saloon and to be honest it costs us £1000 insurance/tax a year and seems to cost at least another £1000 a year in repairs. MOT yesterday ended up costing us four new tyres and a new clutch and insurance/tax is due next week. He thinks selling the car and making around £3k he can use that to lease a car. His reasoning is this is the poorest we'll ever be and his boss has assured him that he will easiky be able to afford a new car with next years bonus ( he is a city trader...dont throw stuff at me ;-)

Does anyone know about leasing a car and the costs involved? Do we still need to pay insurance road tax or is it sorted, I really dont know anything and would love to have some sort of factual knowledge so I can talk it through with him sensibly.

Thanks

Nile

Hello natmid

I'll move your thread to the 'Motoring & Public Transport' board, where it should get more views and responses.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Regards

Nile

Moomum

Thanks... should have been i wanna lease a car but got a bit carried away lol

Little_John

There are many different lease options available.
some all you get is the car, you pay for maintaence etc
the most common one is you get the car and maintanence all you pay for is fuel and insurance
There are other options where you can get insurance in the deal as well.

The prices go up the more you get included, you should really look in to it all remember with a lease your just paying money and never really have anything in the end, yes all the worry of depreciation doesnt bother you but most leases have a restriction on the mileage you can do and if you break the limit they charge you per mile over you go.

Yes you will have a new car for 3 years or how ever long you take the lease give it back and get another new one but you will never own the car. I just bought a car in October I was looking at private leases but they weren't good value I didnt think especially when I told them I do 30000 miles a year I decided to buy a nearly new car and pushed the boat out buying somthing that should have cost £20k new I got it for £12k, in 3 years it will have 100000 miles on it but as long as it still looks ok and runs ok and I havnt got bored of it I will just run it in to the ground.

Just work out all the costs over a year, get the prices of the cars to buy and lease and just see what the diference is, the bit that swayed me was the resale value of the car at the end even with the mileage it will still have a few grand in it.

To get an idea of the value of your car, us ethe glass's guide that the dealers use. go to vauxhall.co.uk and in the owner section there is a value your car and enter the details and see what it comes up with for you.

Moomum

Great start. thanks

nearlyrich

My colleague has a personal lease, she pays around £360 a month for just the car, she also has to tax , insure and maintain it, service, tyres etc. There is a limit on the amount of mileage she can do or she pays extra per mile.

Little_John

nearlyrich wrote:

My colleague has a personal lease, she pays around £360 a month for just the car, she also has to tax , insure and maintain it, service, tyres etc. There is a limit on the amount of mileage she can do or she pays extra per mile.

Thats what I found, the monthly cost compared to buying it isnt much difference at least buying it you have it to sell at the end and dont have any penalties for using it more than you should.

Peugeot call it passport
Ford call it options

reduceditem

Sell the Focus. Buy an 8 year-old Toyota (Corolla will do fine). Bank the £2,000 differernce (or put it an ISA). Save £500 a year on insurance (in 5 years you'll save another £2,500). Save about another £900 a year on repairs (another £4,500 saved in 5 years). Bingo, you've now got a car that is reliable, cheap to run and insure and in 5 years you'll have saved £9,000.

I don't think you need to ask me my opinion about leasing and about Ford cars.

I like to save money.

Good luck.

Piggybanker

Hi

A subject close to my heart as I've had a lease car for 4 years and 2 weeks ago bought my own. I'm regretting it slightly now.

The benefit of the lease for me was knowing how much I had to pay each month - no surprises at all. Also accidents were all dealt with for me, windscreens replaced with someone else arranging it, services booked etc etc. Everyone's situation is different, but I was definitely better off over the term with the amount of repairs etc that were all covered. My terms were 7p per mile for any personal mileage over 25000 miles which I was nowhere near.

On Thursday a fence fell on my new car! No lease company to pass the buck to now......

Piggy

chrisw

If it's a company lease car don't forget to include a lump for the tax man. I pay about £60 per month tax on top of the lease cost for a VW Passat.