Car cost evaluation

Rocksolid

The average county salary in the London zone is impossible unless you wanna live very bad, and I mean seriously very bad, considering the London average instead, well guess what, it's always !!!!!! living with at least 2 other people in the modest accommodation you can afford, if you wanna save something...

Despite the considerations are correct, noting as average quality matters in the London zone, average there means !!!!!!, without offense.

Bluebell1000

It's worth saying that lease cars via salary sacrifice can work out relatively low cost for a higher rate taxpayer, because of the tax and NI savings.  Our company's lease provider covers road tax, maintenance, servicing, breakdown and insurance as well in one payment. It gives a bit of peace of mind as you know there is one monthly cost which covers everything.  I'm not a higher rate taxpayer, but we calculate that it's costing us about £3k a year more to pay for a new car on a lease, than it did to run our 15 year old diesel. We decided it was worth it because my husband was getting stressed about the maintenance. Plus I am happy to have an electric one and go greener

Rocksolid

3k a year more it's really a lot, not something you have chosen money wise, just comfort and tech I guess

Bluebell1000

Rocksolid said:

3k a year more it's really a lot, not something you have chosen money wise, just comfort and tech I guess

Yes, it is a lot. But still more affordable than buying a £35k car up front. That felt like a much bigger commitment than the £3k a year! I guess it's a comparison thing; if you compare running any older car vs. a new car, it's likely the figures won't look good for the new car. However if you are comparing someone who is planning to get a new car anyway, and it's purchase vs. lease, then with the tax breaks, a salary sacrifice lease may well work out cheaper than buying outright.

In our case, with the technology moving so fast, we had decided to go electric, but were not entirely sure about buying an electric straight away, so this has given us a chance to try one out for a bit and see how it goes. Then in 4 years (well, 3.5 now) when our lease is up, we can either buy this lease car, or look at getting a different one, when there will be more choice of EVs on the market, and possibly even longer ranges.

Rocksolid

All good points, but...

1. You won't get the deposit down back, no matter what

2. You may not use the car for a while, but you still pay the rent on something is not yours, like pay the rent of an house when you are on holiday

3. These prices seem to be for 5k miles annually, I actually do 12k only for leisure... This will probably almost double my leasing cost... With work could easily be 18k annually.

4. You forgot anyway an higher car insurance cost because the car is not yours and because most probably you will swap car...

5. I didn't buy a new car, my car had around 55k paid 6k, it does 70mpg but not in the city, anyway in the city I travel usually for 1 pound for whatever place I need to visit going and coming back.

This car with 15k mileage per year could stay easily for other 10 years, I don't expect anyway to honor 15k per year due to holidays, bad weather etc...

To me the leasing seems a disaster.