Do we lease or buy???

scotty71

Hi all :j

I wonder if someone could help. My partner is due to start a new job in the next few months, as part of the package he has been given a monthly allowance of around £350 for a car.

My question is, what would be the best option - to buy a car or to lease it?

We have spoken to a garage owner who is recommending that we buy one as leasing is dead money. my concern is that if this was the case then no-one would lease, and what happens if the worst case scenerio happened and he lost his job or was ill for a while.

Thanks for any replies :beer:

nickmack

scotty71 wrote: »

My question is, what would be the best option - to buy a car or to lease it?

It's probably best to decide on a car you want first then see what deals are available.

With leasing you are basically paying for the depreciation on that vehicle for the lease period plus some interest. If the vehicle you are going for has good depreciation for the first 2 or 3 years, you can often get a decent deal. If it doesn't, it can be expensive. You can also have servicing costs included, known as 'with maintenance', so you have virtually all costs covered in the monthly payment. At the end of the lease period, assuming the car is in reasonable condition, you hand it back and choose another.

If you're buying, you often need a larger deposit up front because you will be financing the whole of the vehicle. If you decide on a Personal Contract Purchase, you have the choice of paying a sum to buy the car or handing it back.

albionrovers

The newer the car, the more hit you take.
The older the car, the more someone else has paid for the hit. This is reflected in the asking price.

Balance out what you want.

Forget all that sensible stuff. Lease a new one. You can get plenty for 350/month.