Car Leasing benefits/drawbacks?

hieveryone

Hi all,

Looking for some advice.

I am in the running for a new job which is 50 miles away from my home. I don't mind the travelling, but at the moment my 1.6 petrol car isn't going to cut it if I get this job.

I am looking into the possibility of leasing a car instead of going down the finance route.

What are the benefits of this? I have always just had finance on cars I own.

Ideally I was looking at an Audi A3 in diesel. Are there any particularly good deals out there for leasing? With my mileage I think I'd need to look at 25k-30k a year.

I would ideally like to pay around £250 a month. Possibly look at other models of cars too.

Thanks in advance!

Cardozo

I just did a quick search and as I expected you're looking at a lot more than £250p/m with 30k p.a. mileage. That's because effectively in 3 years the car would be just under 100k in miles and have lost a lot of its value.

£1k deposit and £350 a month from my quick search.

10,000 miles p.a. would be £250 so you see the difference.

edwardw

I leased a 1.6 a3.
I was paying £299 a month with no intiial deposit.
and had around 10k mililage a year.
Can be quite expensive on a personal lease

hieveryone

Any maths whizzes out there can work out if I would just be better buying a second hand one then? I'd probably spend about £10-£12k on a decent one with low mileage, and aim for around a £1500 deposit.

forgotmyname

Why do you need to spend £10k - £12k ??

Why not half that?

As well as your high mileage. The issue with a lease is ..

What if your 3 - 6 months into a 3 year lease and you lose the job. It still needs to be paid for.

geek1981

forgotmyname wrote: »

What if your 3 - 6 months into a 3 year lease and you lose the job. It still needs to be paid for.

So you won't buy any nice things in your life because you always worry about losing jobs in 3-6 months? I don't think that's right. If you are good at what you do you will find another job if you lose one. You can't live all your life worrying about losing job!

learningaboutinsurance

geek1981 wrote: »

So you won't buy any nice things in your life because you always worry about losing jobs in 3-6 months? I don't think that's right. If you are good at what you do you will find another job if you lose one. You can't live all your life worrying about losing job!

Wow, :eek:

with that attitude no wonder finance and lending company's are raking it in

Have recently been on the DFW board or even the Loan forum board on MSE

fivetide

OP - why won't your 1.6 car cut it?

What is this aforementioned 1.6 car? You need to price up the price you'll get for it against the cost of a newer (?) car and the depreciation that will bring.

Not to forget the higher price of diesel to petrol and what the mpg might be. You should be in the bracket to make savings at 100 miles a day but it's worth seeing how long it might take you to be 'in profit' as it were.

forgotmyname

geek1981 wrote: »

So you won't buy any nice things in your life because you always worry about losing jobs in 3-6 months? I don't think that's right. If you are good at what you do you will find another job if you lose one. You can't live all your life worrying about losing job!

Yes i buy nice things, But i now pay CASH...

A few years back i was on decent money. Then suddenly taken ill. From ££££ to £ rapidly and totally unexpected.

A big lesson. Bills still arrived as normal but no means to pay them.

Luckily things changed. Now we save a LOT more. Things that were paid monthly because its convenient are now paid instantly if it saves money.

If i wanted i could go out and buy a brand new car for cash. But the previous lesson has taught me that i am not immortal.
And that these items need to be paid for.

If you want to be in debt for a car then go and do it. Me i would rather buy.

So my opinion still stands. What if you are out of work. How will you pay for it?

What if you cannot work for a good few months?

I will stick with my Mondeo for a while. Although that S-Max keeps calling to me.
But will it call hard enough to part me with £6000 when i can buy a Mondeo for less than half that?

hieveryone

forgotmyname wrote: »

Why do you need to spend £10k - £12k ??

Why not half that?

As well as your high mileage. The issue with a lease is ..

What if your 3 - 6 months into a 3 year lease and you lose the job. It still needs to be paid for.

Because the model of car that I want would cost in that region, and I would like a relatively new car that won't cause me any problems.

I won't lose my job.

hieveryone

fivetide wrote: »

OP - why won't your 1.6 car cut it?

What is this aforementioned 1.6 car? You need to price up the price you'll get for it against the cost of a newer (?) car and the depreciation that will bring.

Not to forget the higher price of diesel to petrol and what the mpg might be. You should be in the bracket to make savings at 100 miles a day but it's worth seeing how long it might take you to be 'in profit' as it were.

My 1.6 is a Mini. I just don't like it, it's just not 'me'.

It is also very heavy in petrol.

I would pay the difference between what the trade in value is against the settlement figure before getting a new car.

I need a car with higher MPG.