leasing vs buying car... tempted to lease!

bargaindoctor

any thoughts on this? thinking about leasing instead of buying now.... first car.... one of those 3+ 23 deals and looks like u can get a pretty nice car brand new for a couple hundred a month which works out around £5-6k over 2 years, but MOT / road tax all included. The alternative for me would be to buy a second hand car (budget of £5k cash max) and benefit would be to sell it off again later....

plane_boy2000

Depends of loads of factors really, but my choice has been to just move into a lease. Have bought new cars for a while, but thought I would keep my money in the bank and lease.

Loads of people will tell you to by used etc and save money, but I dont think the savings are as big as they used to be especialy if you get the right model.

Take into account all the things you get with a lease like Tax, Breakdown cover, no MOT's etc and the difference between new and used is eroded plus you have the feel good factor of having a new car that you chose in your colour etc.

Dave_Brooker

bargaindoctor wrote: »

any thoughts on this? thinking about leasing instead of buying now.... first car.... one of those 3+ 23 deals and looks like u can get a pretty nice car brand new for a couple hundred a month which works out around £5-6k over 2 years, but MOT / road tax all included. The alternative for me would be to buy a second hand car (budget of £5k cash max) and benefit would be to sell it off again later....

You end up paying a fortune to look after someone elses car, and every dent and scratch will be a problem.

Buy an ex lease car and let someone else sponsor all that early depreciation...

balsingh

If you are considering leasing, take a look at http://www.contracthireandleasing.com/ as they compare lots of leasing companies and show the best deals out there. I did look into it but for many cars, the best deals aren't 3+23, but £2000+23. The £2000 put me off as that would be a considerable chunk towards a good used car ... and then after the few years, at least the car will have some value when you sell it.

The real positive thing about a lease car is that its brand new and has the warranty so you dont have to worry about things going wrong.

plane_boy2000

Dave_Brooker wrote: »

You end up paying a fortune to look after someone elses car, and every dent and scratch will be a problem.

Buy an ex lease car and let someone else sponsor all that early depreciation...

Every dent and scratch on any car costs money weather it is leased or not............

Yes, new cars do depreciate quicker, but when you factor in the benefits such as no MOT for 3 years, road tax thrown in, ALL repairs covered - not like these aftermarket warranties that only cover thebits that never break down, 3 years breakdown cover - all these things have a value and result in trouble free motoring for the period of ownership

bargaindoctor

thanks all

i saw lingscars.com on dragon's den. was tempted by one of her cars, but maybe the £2000 + 23 si a better deal even though by the sounds of it I don't see how it could be the case unless I pay very little money in each of the 23 months!

How do i find an ex-lease car btw? They probably would make pretty good investments indeed.

For a lease too it seems like I'll be able to drive a car I would otherwise probably not bother purchasing like an Audi TT or BMW Z4. If I buy a car I might get something pretty basic like a VW Golf or Ford Puma.

balsingh

bargaindoctor wrote: »

thanks all



How do i find an ex-lease car btw? They probably would make pretty good investments indeed.

.

Have a look at the car supermarkets as most of their stock is ex-lease. Place like https://www.cargiant.co.uk or Carcraft etc.

dnc1781

balsingh wrote: »

Have a look at the car supermarkets as most of their stock is ex-lease. Place like https://www.cargiant.co.uk or Carcraft etc.

NOT Carcraft!

Try:

http://www.mh2k.com/
http://www.motorpoint.co.uk/
http://www.trade-sales.co.uk/

peterg1965

try... https://www.fow.co.uk

piggeh

Contact the remarketing departments of the contract hire companies themselves. I've done this and they have been willing to send a list through of vehicles shortly being returned with pricing.

movilogo

If its your car and you've a scratch/dent, it is upto you whether you want to repair it or not. However, for a leased car, you have to repair it shelling out your own money (or claiming from your own insurance).

Moreover, you can't fit any accessory you like. You still need to service the car using your own money.

At the end of the lease, the car is not yours!

If your own car, you can sell any time. If leased, if you break the contract, pay a penalty.

C = New Car Price
L = Total Lease money paid in 'x' years
D = Market value of car after 'x' years (when lease ends)

Ideally, C = L + D
Only the D is variable here. So, if you feel that you can sell the car at a good price after few years, then I personally think leasing doesn't make sense.

Ever wondered how lease company makes profits?

They make you pay a hefty amount in first 2-3 years (say). Then they sell well maintained car at a good price to customers. Then pockets the difference (L-D part in above equation).