Lease or buy and sell after 3 years

Legacy_user

Hi,

What would make more financial sense?

Lease a car for £280 a month, or buy one ‘nearly new’ for £32,000 then sell it after 3 years?

Thanks

wgl2014

Depends...........

What deposit on the lease and what is the nearly new car expected to be worth when it comes time to sell?

System

It's a £2900 deposit, and the car would probably be worth around 22k. Buy and sell seems like a no brainer but never sold a car before and it seems like a headache whereas with lease you just return it.

wgl2014

Roughly then the lease will cost £13k whilst buying and selling will cost £10k.

This obviously depends on what you get selling the car, you may find private buyers tend towards going to a dealer at this price point. You could also part ex the car but would be unlikely to get as much.

A third option would be to keep the car longer than 3 years, depreciation will have slowed down and you will still have a relatively new nice car.

DUTR

danyalaziz wrote: »

It's a £2900 deposit, and the car would probably be worth around 22k. Buy and sell seems like a no brainer but never sold a car before and it seems like a headache whereas with lease you just return it.

Seems like you have already made up your mind.....
If leasing was around in my early vehicle owning days then that would be for me as the cars I owned the next stop more often was the breakers yard.
Nowadays whilst I can I buy outright (brand new) because I like what I am buying, what it's worth later is not going to be a worry as I want to enjoy ownership with little continuous outlay, the time soon passes .

JP1978

It will be very model specific and what dealer incentives, or deals from the car brokers you can find.

Get the price from a broker (drivethedeal etc).
Find a three year old car, same spec on AutoTrader and input its reg into WBAC and get a valuation.
That will give you a rough idea of depreciation you will lose.

Compare the above via the cost of a lease - noting that dealers may have additional support on some cars (outgoing models etc) which assists in the costs.