Leasing is the way to go?

AdrianC

motorguy wrote: »

Of course there is - you just chose not lease another car and buy with cash instead.

In my world, that counts as "actively spending money".

motorguy

AdrianC wrote: »

In my world, that counts as "actively spending money".

Then your reason dont fit your assertion?

In your world - "you have to keep leasing because you would have to actively spend money to not do it". How does that make ANY sense? Can you see that happening "oh no, i have to keep leasing for the rest of my life because i would have to actively spend money not to!".

As opposed to in the real world "you dont have to keep leasing because at the end of the term you can chose to buy a car outright, use a regular finance deal, OR chose to continue leasing with another agreement".

AdrianC

motorguy wrote: »

Then your reason dont fit your assertion?

In your world - "you have to keep leasing because you would have to actively spend money to not do it". How does that make ANY sense? Can you see that happening "oh no, i have to keep leasing for the rest of my life because i would have to actively spend money not to!".

"Oh, !!!!!!, I've got a cashflow shortage for the next few months and really need to trim my outgoings back... Ooops, if I stop the car lease payments, I've got to go out and buy a car."

motorguy

AdrianC wrote: »

"Oh, !!!!!!, I've got a cashflow shortage for the next few months and really need to trim my outgoings back... Ooops, if I stop the car lease payments, I've got to go out and buy a car."

As opposed to having to "firesale" the car you paid cash for and lose a fortune on to sell it quickly?

You're working on the assumption that someone who is paying a lease payment has no spare expendable income and no savings at all, either to continue payments during an unexpected circumstance OR to replace a leased car with a cash purchased alternative. Whilst this may in your world suit your viewpoint, its not how the vast majority of the "real world" works.

Clearly you are chosing not to "get" how leasing "may" work for some people. Whether that is because you are obtuse, blinkered or like an argument on the internet, i cant tell.

marathonic

AdrianC wrote: »

"Oh, !!!!!!, I've got a cashflow shortage for the next few months and really need to trim my outgoings back... Ooops, if I stop the car lease payments, I've got to go out and buy a car."

In my case, I can lease a Ford Focus at £155.99 per month (and £935.94 upfront) for two years and leave whatever remains from the £14,000 in savings in my ISA.

Alternatively, I can purchase a Ford Focus at £14,000 and have no savings.

If I choose the leasing route and have a cashflow problem in a years time, I'll have about £11,500 left in my ISA that I can tap into to get me over my temporary cashflow problem.

If I choose the purchase route and have a cashflow problem in a years time, I need to sell my car as quickly as possible and buy a cheaper one as quickly as possible. Obviously, when attempting to sell quickly, you'll probably need to accept a little less than what the car is worth. Likewise, when attempting to buy quickly, you can't exactly 'hold out for a bargain'.

Which of these options do you feel offers more flexibility in your hypothetical cashflow problem?

rexmedorum

marathonic wrote: »

In my case, I can lease a Ford Focus at £155.99 per month (and £935.94 upfront) for two years and leave whatever remains from the £14,000 in savings in my ISA.

Alternatively, I can purchase a Ford Focus at £14,000 and have no savings.

If I choose the leasing route and have a cashflow problem in a years time, I'll have about £11,500 left in my ISA that I can tap into to get me over my temporary cashflow problem.

If I choose the purchase route and have a cashflow problem in a years time, I need to sell my car as quickly as possible and buy a cheaper one as quickly as possible. Obviously, when attempting to sell quickly, you'll probably need to accept a little less than what the car is worth. Likewise, when attempting to buy quickly, you can't exactly 'hold out for a bargain'.

Which of these options do you feel offers more flexibility in your hypothetical cashflow problem?

Actually if it is flexibility you are after. Don't forget that with the lease you are signing up for 2 years 10k/year. So that in itself isn't very flexible even ifit does leave you with access to some cash.

motorguy

rexmedorum wrote: »

Actually if it is flexibility you are after. Don't forget that with the lease you are signing up for 2 years 10k/year. So that in itself isn't very flexible even ifit does leave you with access to some cash.

You are taking "flexibility" out of the context of the question that marathonic posed.

No car purchase / rental / finance solution will offer absolute flexibility because each have their own constraints.

alleycat`

Interesting debate which I've summed up in my mind as "horses for courses".

Choose the thing that suits the circumstances.

motorguy

alleycat` wrote: »

Interesting debate which I've summed up in my mind as "horses for courses".

Choose the thing that suits the circumstances.

Yes.

Totally agree.

And weigh up the pros and cons for you of each particular route to your chosen car, rather than just "assume".

marathonic

Agree with the last couple of posts. For me, it's been interesting taking a closer look at some of the deals available because I had always just assummed that paying upfront for anything would ALWAYS work out cheaper. That's obviously not always the case.