Car leasing versus buying a car

Leftism_2

Hi all,

I wondered what you thought the pros and cons were of leasing a car versus buying a nearly new one (2 or 3 years old).

Also can anyone recommend search engines for the best car leasing deals please? I would be looking at medium sized, medium engine cars like Golfs or Audi A3s.

Many thanks

getmore4less

What is your car usage mileage makes a big difference to the outcome.

MX5huggy

Best site for leasing http://www.lingscars.com it's a crazy site but it does the job.

The biggest problem with leasing for me is setting the milage and the extra charges for going over it. Unexpected needed 500 miles trips to see my parents every other weekend last year rather blew my estimated 10000 miles per year out of the water.

And then the condition check on the lease finishing and the charges for rectifying faults found. Ie a slate fell off my roof, £400 to fix dent and respray bonnet. I can live with the dent but if it was a lease car it has to be paid for. Curb an alloy £50. Etc.

Leftism_2

getmore4less wrote: »

What is your car usage mileage makes a big difference to the outcome.

Over the last 4 years it averages at 13,500 miles. I'd expect that would be about right in future too

Leftism_2

MX5huggy wrote: »

The biggest problem with leasing for me is setting the milage and the extra charges for going over it. Unexpected needed 500 miles trips to see my parents every other weekend last year rather blew my estimated 10000 miles per year out of the water.

And then the condition check on the lease finishing and the charges for rectifying faults found. Ie a slate fell off my roof, £400 to fix dent and respray bonnet. I can live with the dent but if it was a lease car it has to be paid for. Curb an alloy £50. Etc.

Great information, thank you !

jaydeeuk1

Another option is a PCP. I did one on my Toyota IQ, bit like a loan.
Pay over a fixed term, inmy case 3 years. Before the beginning you have an agreed final sale price, my cars initial price was something like £12000 (did scrappage scheme). I pay £190 over 36 months so my total cost would be £6840. My gamble was that trusting the car will be worth more than what Toyota think. They give me a final value of £6000 so in effect I'm £840 worse off than buying new.

However, this is offset by the fact I've earned interest on not paying the £6840 in one go, and also that my car will be worth approx £6500 by the end, or £7000 if I sell now (currently listed for £7499)

I can then either pay the final £6000 and keep the car, hand the car back with nothing to pay, put it to part exchange to another toyota, or in my case, list it for sale, and pocket anything over the outstanding finance amount

property.advert

jaydeeuk1 wrote: »

Another option is a PCP. I did one on my Toyota IQ, bit like a loan.
Pay over a fixed term, inmy case 3 years. Before the beginning you have an agreed final sale price, my cars initial price was something like £12000 (did scrappage scheme). I pay £190 over 36 months so my total cost would be £6840. My gamble was that trusting the car will be worth more than what Toyota think. They give me a final value of £6000 so in effect I'm £840 worse off than buying new.

However, this is offset by the fact I've earned interest on not paying the £6840 in one go, and also that my car will be worth approx £6500 by the end, or £7000 if I sell now (currently listed for £7499)

I can then either pay the final £6000 and keep the car, hand the car back with nothing to pay, put it to part exchange to another toyota, or in my case, list it for sale, and pocket anything over the outstanding finance amount

Or find that the damage you have caused to the vehicle during your period of ownership has been calculated by the dealer as £2000 and your assumptions and calculations are totally stuffed.

zayn

Look at the cost of the deal over the contract rather then the car. if you take a pcp then you always have the option to pay the agreed GFV which usually only works in your favour if you can sell the vehicle privately for a profit. Service Maintenance is also something to consider as not all PCP's include this. If you keep the car in good condition then there is no reason why you should be hit by any extra charges at the end of your contract