Car leasing, worth it?

DiNZi

Hi all,

I just wanted to get your input on whether you think car leasing is worth it?

My Dad has just recently purchased a Mercedes C200 2010 (60) plate, and I'm hoping to get my license soon, we change cars every 2 years or so, I usually get pretty decent deals when selling.

The car we've just bought was around £10k.

Target Car Leasing and All Car Leasing have a similar Mercedes C200, of course much newer and you can secure it for £11k over 24 months.

Where is the catch? All Car Leasing also provide you with maintenance in the price, which makes sense they'd like to look after their car so when it's back, it's in decent condition.

I'm failing to see where there is a drawback here, hopefully someone can advise. Maybe, when I return the car after 24 months, they will charge me a huge bill for minor damages? What happens if I get into a non-serious accident?

golddustmedia

I may be overlooking the detail here but it seems to me the difference is you father has BOUGHT a car for £10k rather than leasing, so in 2 years could resell/trade it and potentially get maybe £7 - £8k back. So costing about £2k - £3k over 2 years (£80 - £120 per month)

If you lease the car you never own it and any money paid belongs to the lease company, so if your figure of £11k over 2 years indicates the lease cost (£450 per month) then its £8k - £9k more expensive.

Essentially the difference between ownership verses hire/lease.

Admitedly you need to factor in the cost of maintenance if you own the car but it would likely still work out substantially cheaper based on average usage.

andrewf75

Car leasing is potentially cheaper than buying a brand new car every couple of years.

But anyone interested in saving money won't buy a brand new car every couple of years, they will either buy a nearly new car for thousands less or keep it for longer. Otherwise you lose loads in depreciation.

I'm amazed so many people think leasing is a good deal.

force_ten

with a lease you pay your deposit then your monthly amount for the cost of lease and then at the end of the lease you hand the car back and walk away

if you want to keep the car at the end of the lease then you would have to pay a balloon payment at the end of the lease

look at a lease as long term rental car you will never own it and are just paying a monthly fee to drive it

Spicy_McHaggis

DiNZi wrote: »

Hi all,

I just wanted to get your input on whether you think car leasing is worth it?

My Dad has just recently purchased a Mercedes C200 2010 (60) plate, and I'm hoping to get my license soon, we change cars every 2 years or so, I usually get pretty decent deals when selling.

The car we've just bought was around £10k.

Target Car Leasing and All Car Leasing have a similar Mercedes C200, of course much newer and you can secure it for £11k over 24 months.

Where is the catch? All Car Leasing also provide you with maintenance in the price, which makes sense they'd like to look after their car so when it's back, it's in decent condition.

I'm failing to see where there is a drawback here, hopefully someone can advise. Maybe, when I return the car after 24 months, they will charge me a huge bill for minor damages? What happens if I get into a non-serious accident?

Who is leasing the car?

You haven't got a licence but you usually get a decent deal when you sell the car.

Will the lease car be in addition to your dads?
If not can you also afford to insure it?
How often will you change the oil?
Will it have rear brakes?

albionrovers

PAYG motoring. It's not for everyone and it certainly isn't moneysaving.
That said, I've just ordered a BMW 125D MSport for 229/month inc VAT, 3+23. One of the better deals about, hopefully.

OddballJamie

albionrovers wrote: »

PAYG motoring. It's not for everyone and it certainly isn't moneysaving.
That said, I've just ordered a BMW 125D MSport for 229/month inc VAT, 3+23. One of the better deals about, hopefully.

I noticed that deal a few weeks back, had to avoid the site to stop myself from leasing the 5dr one. Great deal.

albionrovers

OddballJamie wrote: »

I noticed that deal a few weeks back, had to avoid the site to stop myself from leasing the 5dr one. Great deal.

Yes 5-door. Blinding deal.