To Lease or not to Lease?

JdoubleU_2

My wife and I were wondering if it is cheaper to lease a car than part exchanging for a newer model over a long term. Any thoughts gratefully received!

DUTR

JdoubleU wrote: »

My wife and I were wondering if it is cheaper to lease a car than part exchanging for a newer model over a long term. Any thoughts gratefully received!

You will have to get the calculator out andwork out if it is cheaper for you, for me I like to own my car from day 1, but others their finance or situation may vary as will yours.

IamNotAllowedToUseMyName

Leasing costs money.

Leasing might look attractive as a means of buying a car you can't otherwise afford but in the long term you are paying interest. Leasing companies may pass on discounts they can achieve through bulk buying so the deals may look attractive over list price, but I'd you consider say buying a one year old car where you may see discounts of 40% against new then leasing doesn't look so attractive.

Leasing a new car seems attractive, passing out the same money 3 years on just seems a lot of money £250 a month for new car, bargain, 30 months later it doesn't seem so good for an "old" car.

As has already been said, get the calculator out, but don't just compare like with like, but consider all options.

ripplyuk

I know some people who have only had lease cars for years and are delighted with it. They are the type that doesn't want any hassle with MOT's, repairs etc and prefer a brand new car.

I got my latest car on a Personal Contract Purchase so I have the option to buy it at the end of 4 years or I can hand it back or start again with a new car. The final purchase price has already been agreed and it was very reasonable. The monthly payments are much the same as I paid for buying my previous used 4 year old car outright when I financed it over 4 years.

I think it depends what your priorities are.

w211

ripplyuk wrote: »

I know some people who have only had lease cars for years and are delighted with it. They are the type that doesn't want any hassle with MOT's, repairs etc and prefer a brand new car.

I agree, since my job involves me doing a high mileage (my car is on a 45,000 mile/year lease), if anything goes wrong with the car it will be dealt with under warranty.

When the three years is up, and the car has done 135,000 miles I simply give it back, and get another, without having the hassle of getting rid of it.

Only problem is they want it back in (near) perfect condition, so obviously, there's doing to dents and dings which need to be looked at before handing it back (there's going to be a few at that mileage), which I budget for.