Leasing vs Buying New

nomoneytoday

An MOT costs £50. The monthly lease on a family saloon car is £200 ish.

I would rather pay £50 once a year than £2400...

tightbarsteward

nomoneytoday wrote: »

An MOT costs £50. The monthly lease on a family saloon car is £200 ish.

I would rather pay £50 once a year than £2400...

Depends if there is anything wrong with it. I was faced with bill for over £500 to get my car throught it's MOT. If you have a lease car at least you know what you are paying out every month.

A leased Seat Ibiza 1.4S is £150 per month which is the same amount as repayments over 3 years on a £5000 loan where you then have to pay out extra for MOT tax etc per month.

anewman

You guys have opened my mind up to leasing as a viable alternative to buying new/near new, but nothing beats owning your own car and not worrying about mileage or getting a new stereo fitted etc. Even if it may cost a little more.

Bangers really are the way to go and beat the cost of leasing/buying new/near new everytime due to snobbish car owners not accepting anything except 07 reg, and the market at the bottom end being weak at best. Why be a loser and get silly 20% APR credit deals on cars you can't afford, when you can get cars with heated front screens, heated seats, electric mirrors, heated mirrors, electric windows, electric sunroof, ABS, power steering, air bags, air con etc etc in some cases nearly all in for under £1000 if you have some persistence and know what you're looking for. I just don't see the sense in buying new if you can't afford it.

movilogo

electric mirrors, heated mirrors, electric windows, electric sunroof, ABS, power steering, air bags, air con etc etc in some cases nearly all in for under £1000

Thought exactly this and bought a car for £1500 last year. In 8 months I spent £800 to fix it. Then sold the car as discovered that to make it pass next MOT, I need to spend another £500 more. Sold car now and lost over £1200 in 8 months.

Lesions learnt:

[1] depending on your luck (?) you can be a winner or loser! So, next time I'd buy a nearly new (1-yr oldish), probably I'd lose same amount in depreciation but won't have to worry about MOT and fixing things.
[2] if you buy a banger, don't spend single penny on fixing it. If you do, you'll fall in trap of sunken cost phallacy and continue spending assuing it won't give you trouble any more but in reality it will.
[3] If you buy any car which is outside of manufacturer's warranty period, chances of shelling out big money to fix it is same whether you buy a £1000 car or £5000 car. A friend of mine bought a 5-yr old Vectra for £3500 and engine died next morning. Cost £1000 to fix.

apk1

movilogo wrote: »

Thought exactly this and bought a car for £1500 last year. In 8 months I spent £800 to fix it. Then sold the car as discovered that to make it pass next MOT, I need to spend another £500 more. Sold car now and lost over £1200 in 8 months.

.

So being unlucky and picking a duff car cost you £150 pm, probably still a lot less than leasing?

atatters

If you would like expert advice on leasing or for any lease deals contact www. leasecars. co.uk and check out our lease v buying section.

iwilldoitthistime wrote: »

Hi there

apologies if this has been discussed before - but Ive hunted and cannot find anything!

Can anyone give me advice on leasing versus buying a new car. My car is coming up to two years old, and I dont know if I would be better getting a lease car to be renewed every two years, rather than buying another new car, which seems to lose quite a lot in the first two years.

I am only looking for something like a Megane, or something similar size.

If leasing is the way to go - can anyone suggest a good company to use??

thanks!

wattywattwatt

apk1 wrote: »

So being unlucky and picking a duff car cost you £150 pm, probably still a lot less than leasing?

If you choose to buy a banger you get what you pay for, sure you will always hear of someone who gets a car for a couple of hundred quid and it runs with no problems for a couple of years, but in my experience these are few and far between. I would much rather buy a nice one or two year old car, within manufacturers warranty, and be assured of reliability and no outlandish repair bills.

Lum

At the end of the day, a leasing company is buying a car, lending it to you for x years for a fixed fee, then selling it on.

If you assume that the leasing company is making a profit then the amount you are paying is obviously more than the cost of them buying a car and selling it 3 years later, therefore leasing is not saving you money.

If you look at it as paying them for the convenience of haggling with the car salesman, and selling the car on without you having to deal with tyre kickers and time wasters, or getting ripped of on a trade-in, while at the same time reducing your risk of an unexpected payout then a lease may still be an attractive option.

Just don't think it's a cost saver.

Regshoe

Lum wrote: »

At the end of the day, a leasing company is buying a car, lending it to you for x years for a fixed fee, then selling it on.

If you assume that the leasing company is making a profit then the amount you are paying is obviously more than the cost of them buying a car and selling it 3 years later, therefore leasing is not saving you money.

If you look at it as paying them for the convenience of haggling with the car salesman, and selling the car on without you having to deal with tyre kickers and time wasters, or getting ripped of on a trade-in, while at the same time reducing your risk of an unexpected payout then a lease may still be an attractive option.

Just don't think it's a cost saver.

In theory of course if the leasing company can negotiate a large enough corporate discount on buying their vehicles it could be possible for you to break even, or even save money (compared to buying new).

Grumpy_Old_Duffer

I currently have a Company car via Leaseplan, and because of the convenience not having to worry about Servicing, MOT, Breakdown etc. I'm also considering going down the Private Lease route, when I retire in a year or so. At the end of 3 years hand the car back and have new one.

I wouldn't be interested in a second hand car because you don't know it's 'history' and MOT's can end up being a very nasty surprise, with the potential costs involved in getting all the necessary repairs carried-out to get a car through an MOT (someone I know had a £1,500 bill recently:eek:).

The way I look at Buying v Leasing, is a new car will loose c. 50% of it's value in 3 years. To try and sell a car could end up having 'assets' tied-up for sometime whilst you try to sell the car (as a neighbour recently found out), or you could end up selling it for a lot less than you want too because you're having trouble trying to sell it!! If you keep a car longer than the 3 years then you start to get in the possible nightmare scenarios of the dreaded MOT!!!!!!! If a car looses c. 50% in 3 years then that's the budget for a Lease car i.e. £20k car losses c. 50% in 3 years = £10k budget for the 36 monthly payments, plus the deposit, for a Lease car, maybe a bit more to take into account the 'convenience' factor.

Would like to hear from someone who has gone down the route of Lease Hire that is not self employed, to explain the pro's/con's and what to look out for. By starting Leasing during retirement I will know what my outgoings will be and won't have any nasty surprises from MOT's/Servicing.

One question I do have is if you have a 3 year lease who will be responsible for the MOT?