Lease a car vs buying a car?

dannyrst

andrewf75 wrote: »

Most probably don’t worry, but that just sums up the problem. Wages aren’t rising, housing is more and more unaffordable, people aren’t saving enough for their retirement etc. etc. yet they are happy to pay £150+ a month for a car when they could do it for well under £100.

This is the kind of bigger picture issues that concern me. And as this site is specifically about money saving, the advice I would give would reflect that, but it’s only my opinion.

But again. That isn't the fault of leasing or finance. Leasing is very attractive to me, so I want to see companies marketing their offers.

Cornucopia

andrewf75 wrote: »

There is also a cost to being locked into a contract.
If you buy a 15k car and lose your job in a months time, you can sell the car.....

A new car typically loses 19% of its value in the first year (actually I thought it was more than that). So the ability to sell (possibly involving negative equity) is not necessarily going to help.

andrewf75

Cornucopia wrote: »

A new car typically loses 19% of its value in the first year (actually I thought it was more than that). So the ability to sell (possibly involving negative equity) is not necessarily going to help.

true, but the whole point of my argument is avoiding buying new cars precisely due to that!
You've just spelled out the main part of my argument perfectly! Leasing v buying new makes no odds. Either way you are paying for the high depreciation of the first 3 years of a cars life. And with leasing you do it all again after 3 years, while at least with buying outright you can choose to keep for longer.
Buy a second hand car and keep it for longer than that is what I am arguing.

Cornucopia

laidbackgjr wrote: »

But then - where are you finding a lease for £150 a month on a £15k car...?

That was just off the top of my head. But the ratio is not far off:

BMW 520d SE Touring. £34,035 OTR or 6+35 @ £342pm
Renault Clio Dynamique Nav TCe 90:- £15,565 OTR or 6+35 @ £155.34

... I've just had a quick search and for a lease of £150 a month you get a car around £9 to £10k - plus you have to find a deposit - so it's not the simple numbers I used or that you used - but it's the logic of comparison that you need to develop.

Yes, I can see that some actual examples will help...

A 2011 Auto Express cost analysis for Kia Soul 1.6 CRDi Hunter:-

On the Road: £16,195
Residual Value after 3 years: £6,700

Cost of depreciation: £9,495

Current Lease cost (1.6 CRDi Connect): 3+35 @ £214pm = £8,161

Assuming that the car can only have got more expensive over the past 6 years, and that the two models are broadly comparable, I think that's a useful comparison. You could also add £750-1500 for financing costs.


There are also figures for Nissan Juke in the same article:-

Nissan Juke 1.5 dCi Acenta Premum

On the Road: £16,895
Depreciation: £9,395

Present Lease (1.5dCi Acenta): 6+35 @ £174 = £7,134

neilmcl

Mark_Hotchner wrote: »

I check every vehicle I'm about to buy via this app
Vehicle Inspection Report

It deciphers the vehicle VIN number and calculates the vehicle grading according to the condition and severity of the vehicle’s inspected areas. A user can see the condition of car areas as well as the grading of each part.

Very useful tool, you should try it

Marked as :spam: and not a very good one at that.