Car leasing - Any advice

filipo

Its probably best i give my current setup with regards transport so you fine people can give me the best advice.

Currently i am doing around 110 miles per day for commuting to work, 55 each way if you get me! Over the month including personal miles this equates to about 2400 roughly speaking. Therefore over the year thats 26k miles. I get 3k fuel allowance per year from my company but is there any further saving i can make regarding my car?

My current car is doing well and i got it on the cheap to try and save money because i knew id be putting big miles on it and it would be worthless to sell on.

Am i right in thinking there is little point investing on a new car if it has depreciated in value considering after 4 years it will have 100k miles on it with my current setup. Even second hand might not be suitable, since if i buy second hand i will end up in the same scenario i am currently in.

Would it be advisable to get a car lease? My current car has about 140k miles on it and its time to start thinking about moving to a new one. Also, since if i buy a car outright or through part payment/loan i dont think il ever regain what i would save if i leased.

Is there anything specific i should know about that something wiser than myself could inform me with?

Hopefully there are other people in the same boat as myself so i can see what they had done.

Many thanks in advance.

Foxy-Stoat_3

Depends on what car your running at the moment and the current pence per mile cost for fuel you are currently paying.

IE cost of a FULL tank of fuel divided by the range of the full tank.

filipo

Thanks for your Reply Foxy!

Its a Renault Megane 1.4 petrol.

Costs £75 for Full tank and does about 430 to full tank.

Idiophreak

filipo wrote: »

Thanks for your Reply Foxy!

Its a Renault Megane 1.4 petrol.

Costs £75 for Full tank and does about 430 to full tank.

So, that's around 40mpg

If you got something newer and efficient (maybe Citroen DS3, lots of those around), you could maybe get this up to 70mpg.

Based on your 2400miles/month, this would save you (420 - 240) £180/month, based on £1.40/litre...probably more over the next couple of years.

You could lease a DS3 for somewhere between 200-300/month, you'd also save on road tax (could be free), MOTs etc - so the cost to you over the course of a year would be really minimal...

Foxy-Stoat_3

Not too bad, £0.17 per mile = £4,420 a year. I won't want to lease a car for 26,000 miles a year tho as it would cost you loads each month.

£75 / £1.32 = 56.81 ltrs / 4.5 = 12.62 gallons. 430/12.62 = 34.07 mpg - you will do a bit better than that with a diesel.

Best get a loan or save up £2-3k and get a low mileage economical car and run that for a few years.

I ran a 53 reg Skoda Octavia 1.9tdi from 100,000 miles to 160,000 miles over 3 years and after normal services, I only had to change 2 wishbones, 2 droplinks and about 4 tyres all in all. The fuel cost was £0.12 per mile, tax was £125 a year and group 9 insurance, so you could save £1,300 a year on fuel if you bought a similar car.

Put the fuel saving in a errrr savings account and use it for repairs/servicing....you may end up spending a lot less on repairs so use it to buy another car in a few years.

Foxy-Stoat_3

Leasing a new car doing 26,000 miles a year would work out quite expensive I would of thought.

filipo

Thanks for the info. It makes more sense now the maths has been done!
I wanted to see if i would be better off or not with a lease but i guess with big mileage id maybe be safer just moving home! but lets not delve into that lol.

Thank you again.

Idiophreak

filipo wrote: »

Thanks for the info. It makes more sense now the maths has been done!
I wanted to see if i would be better off or not with a lease but i guess with big mileage id maybe be safer just moving home! but lets not delve into that lol.

Thank you again.

Well, the basic issue is what car you want, really.

If you didn't mind having a smaller car, you could get something like a toyota aygo...would only cost around £150-160/month for that mileage. It would be £0 tax and £0 MOT and most serious work would be done under warranty. You'd still manage 65mpg in that (and it's petrol, so cheaper than diesel) and so could well be better off over the course of a year.