Parkers depreciation calculator

benjus

Well the old car passed its MOT, got its annual service and got a small sump leak fixed all for £217, so it lives to fight another day...

AdrianC

benjus wrote: »

I expected the depreciation on a new car to be significant. What surprised me was that some of these lease deals seem to be comparable to the depreciation on a 3-5 year old car.

You forget one small detail...

New car lease: You pay £150/mo over three years. After three years, you hand the keys back and walk away with empty pockets.
Used car finance: You pay £150/mo over three years. After three years, you have a car which you owe no money on.

bigjl

From a purely cost point of view the Dacia Duster takes some beating. Used values are a bit of a mystery as there are not many on the used market, I think that is because the kind of person that buys that kind of vehicle is not the kind that changes their vehicle every 3 or 4 years.

forgotmyname

Its a bit like the Lada and Skoda buyers, people would laugh at their depreciation rates that maybe 50% or even 70% in 3 years.

What people forgot though is that even if it depreciated 100% in 3 years it lost less money than the average tin box that only lost 30% of its value.

Would you rather lose 40% of a car that costs £9000 or 30% of a car that costs £15000?

benjus

AdrianC wrote: »

You forget one small detail...

New car lease: You pay £150/mo over three years. After three years, you hand the keys back and walk away with empty pockets.
Used car finance: You pay £150/mo over three years. After three years, you have a car which you owe no money on.

No, I didn't forget that at all. The numbers don't add up like you suggest.

The used car finance option would be more like £300/mo based on a purchase price of £10k and a loan at 5%. After 3 years I may be left owning a car worth £5400. Combining the depreciation and the loan interest is approximately the same as I would have spent on the lease.

forgotmyname

Cost the same as a lease but at the end you will own something that may give years worth of service for minimal cost, where someone with a lease will probably repeat the process.

Has anyone seen any cracking lease deals lately? Where you cannot buy the car for similar money.

Minrich

Leasing will never be cheaper than buying . My sister had a BMW a few years ago for 3 years , her monthly cost (full maintenance servicing etc) was £770pm , cost her £27k in the 3 years for a £32k car . She hasn't done it since !

WellKnownSid

Minrich wrote: »

Leasing will never be cheaper than buying . My sister had a BMW a few years ago for 3 years , her monthly cost (full maintenance servicing etc) was £770pm , cost her £27k in the 3 years for a £32k car . She hasn't done it since !

Leasing is usually cheaper than buying new... but only when you pick your offer. Manufacturers offer deep discounts to shift the cars they need to, and don't discount the cars they don't. Supply and demand, really.

Leasing allows manufacturers to 'hide' a 50% discount in a lease contract, keeping the retail network happy, keeping those who lease happy, and ensures a steady stream of used cars and the destruction of used car values....

Plenty of 'prestige' German cars can be had for under £300 a month. Pick a two year deal and maintenance and servicing will only mean one oil change service.

I budget to replace my 'main' car every 18 months - two years, I pay for an oil change once every two years, no tyres, no brakes, no MoT. It's not worth paying for a maintenance contract because you don't need it. In my experience, the difference between a three year deal and a two year one is usually less than the money you save not having to have one main dealer major service in year three...

FreddieFrugal

1.5 DCI Nissan Qashqai N-Tec - 8,000 mpa - 5.2p per excess mile - initial payment £1187.88 - monthly payment £197.98 for 24 months.

That's initial payment of 6+23 months (so actually over 24 months that's £239.22 a month if you include initial payment)

Total amount payable then would be 5741.42 + any additional mileage required or excess charges + charges for any damage beyond normal wear and tear.

As Sid said, if you want one of the best deals, you need to be flexible on the car you're going to get.

Those figures taken from What Car search

motorguy

Minrich wrote: »

Leasing will never be cheaper than buying . My sister had a BMW a few years ago for 3 years , her monthly cost (full maintenance servicing etc) was £770pm , cost her £27k in the 3 years for a £32k car . She hasn't done it since !

Ah right, so because your sister got severely done over, your subjective view is that all lease deals are crap?

Next time, get her to take a grown up with her.