To Lease or Finance a new car?

Coatze_2

Hi

I am looking at a new car, I realise that by leasing a car you have nothing to show for it at the end.

However to buy the car and to borrow for example £19,000 over a 6 year period incurs interest.

Say i lease a car at £250 per month over a 3 year period this would cost me £9000. In reality buying a £19,000 car and selling after 3 years how much would I lose.

I am really stuck, i guess it boils down to what you can afford.

Do any of you guys lease a motor vehicle?

Cheers

Lee

Indout96

How long is a piece of string ?? it will depend on the car you choose, these are from What Car 2010 but dont take it as gospel as cars go out of fashion almost a quick as clothes:

Weakest resale percentage
Citroen's Xsara Picasso is at the bottom of the heap, holding on to just 20% of its original value over three years.

Strongest resale percentage
The Audi TT has the most solid three-year resale value of any car currently on sale – at 71% for a 2.0 TDi 170 Quattro.

DaniP

Hi Lee,

I agree completely! Everyone says leasing is bad because you never own it but everyone that does take out a loan and pay for it over 5 years, as soon as theyve finished paying for it, they get fed up and want to buy a new one anyway so they end up part exing it and loosing mega bucks!

I have just taken a Nissan Juke on a contract over 5 years. Means I have a brand new, reliable car, one year free tax, no MOT for 3 years and once the 5 years is up I can walk away or lease a new one again.

I think leasing is much better, my mum took out a loan and bought a 56 plate car, her monthly payment is the same as mine. shes had nothing but trouble with it, it cost her £400 last month and now shes thinking of leasing a new car.

DaniP

P.S. I took my lease out with a company called Purple Contracts, they were very good.

Hintza

DaniP wrote: »

P.S. I took my lease out with a company called Purple Contracts, they were very good.

Bunch of cowboys who go out of business then start trading again under the same name.

With leasing you have to do the sums carefully versus PCP and HP etc.

Lynsey

Any decent recommendations for leasing companies.
Thinking about this for our Son, hopefully with insurance included for 2-4 years.
Only need a cheap small car with average mileage usage.
He live in north London.
Personal hire.

Totally blind here, but what should we be looking at??

Any helpful advice fully appreciated.

Thanks.

Lynsey

dh247

I'm also interested in any recommendations for leasing companies - something in the 300 - 350 a month range

Hintza

Lynsey wrote: »

Only need a cheap small car with average mileage usage.

Very unlikely to get a good lease deal on a small car. Know the costs for PCP etc and then you will know a good lease deal when you see it.

One option though could be an only add fuel deal which some manufacturers are doing but again do the sums.

Also remember in this day and age you need circa 20% off the RRP before you start negotiating.

Lynsey

Hintza wrote: »

One option though could be an only add fuel deal which some manufacturers are doing but again do the sums.
.

Thanks and something we are looking at later today.
Problem may be the insurance, he's not had his own insurance yet (added on husbands or companies) and they seem to be asking for 2 years no claims??

Lynsey

xycom1

Hintza wrote: »

Bunch of cowboys who go out of business then start trading again under the same name.

With leasing you have to do the sums carefully versus PCP and HP etc.

Who were they before?

Hintza

xycom1 wrote: »

Who were they before?

Still called themselves Purple Contracts. They told me that I VED for the duration of the lease which I didn't and when I phoned to complain they said that that company had gone into liquidation. Then the conversation went but you are the same company, no we aren't we are just trading under the same name. That was the year I had cancer (2010) so really never fought it as hard as I should have.