Leasing vs buying a car

LewisA77

I'm looking to buy a car but I'm really surprised to find out that leasing a brand new car which INCLUDES insurance is actually almost the same as some of the car insurance quotes I've been getting for a ford fiesta that I'm looking to buy. The car would cost me £4k and the cheapest insurance quote so far is £180 a month. Where as on Carleasing.co.uk I've been given a quote for a brand new toyota corolla hybrid that includes full comprehensive insurance with maintenance for £200 a month, and the initial deposit for the car is £500. The lease itself is 3 years with 15k miles/year allowance and I've already been pre approved for the lease. I'm actually surprised on how a £22k car that is fully insured would cost me this little.

neilmcl

LewisA77 said:

I'm looking to buy a car but I'm really surprised to find out that leasing a brand new car which INCLUDES insurance is actually almost the same as some of the car insurance quotes I've been getting for a ford fiesta that I'm looking to buy. The car would cost me £4k and the cheapest insurance quote so far is £180 a month. Where as on Carleasing.co.uk I've been given a quote for a brand new toyota corolla hybrid that includes full comprehensive insurance with maintenance for £200 a month, and the initial deposit for the car is £500. The lease itself is 3 years with 15k miles/year allowance and I've already been pre approved for the lease. I'm actually surprised on how a £22k car that is fully insured would cost me this little.

That seems incredibly low for that car on 15K annual mileage incl. maintenance and insurance. BTW, you don't pay deposits on car leases, you simply make initial monthly payments upfront, usually a minimum of 3 months so I'm not sure how there's a £500 initial payment on a £200 per month lease. Also, have you taken into account VAT?

If it is as you say then it looks pretty good, go for it.

Sandtree

The obvious question is why your insurance quote is £2,160 on a Fiesta.

Leasing can work out as cost effective but at the end you are left with nothing (best case) whereas if you bought the £4k car how much would it be worth in 36 months? Worst case you end up with bills from the lease company for damage you've caused to their car etc.

Leasing can be convenient but most of us wouldnt be paying close to that on insurance and so may not stack up financially.

neilmcl

Forgot to add, I'd also like to know why your insurance quotes are that high for a £4K Fiesta?

LewisA77

neilmcl said:

Forgot to add, I'd also like to know why your insurance quotes are that high for a £4K Fiesta?

Although I'm 27 years old with 3 years no claims bonus, I do live in an area where the insurance costs are really high. An article was written claiming that my post code was in the top 5 worst places to insure a car. When I was a student at Kingston University and lived at the halls I used to pay half of what I'm being quoted now. It's really a shame that people are judged on where they live rather than how good of a driver they are.

neilmcl

Are you sure it includes fully comp insurance. According to the guide below they only offer 3rd party insurance?

https://www.carleasing.co.uk/car-leasing-with-insurance

LewisA77

neilmcl said:

LewisA77 said:

I'm looking to buy a car but I'm really surprised to find out that leasing a brand new car which INCLUDES insurance is actually almost the same as some of the car insurance quotes I've been getting for a ford fiesta that I'm looking to buy. The car would cost me £4k and the cheapest insurance quote so far is £180 a month. Where as on Carleasing.co.uk I've been given a quote for a brand new toyota corolla hybrid that includes full comprehensive insurance with maintenance for £200 a month, and the initial deposit for the car is £500. The lease itself is 3 years with 15k miles/year allowance and I've already been pre approved for the lease. I'm actually surprised on how a £22k car that is fully insured would cost me this little.

That seems incredibly low for that car on 15K annual mileage incl. maintenance and insurance. BTW, you don't pay deposits on car leases, you simply make initial monthly payments upfront, usually a minimum of 3 months so I'm not sure how there's a £500 initial payment on a £200 per month lease. Also, have you taken into account VAT?

If it is as you say then it looks pretty good, go for it.

Sorry I got mixed up. The cost of the lease is £203 and 3 months initial payment is £609 exc VAT. This includes insurance with 15k miles a year. 

neilmcl

LewisA77 said:

neilmcl said:

LewisA77 said:

I'm looking to buy a car but I'm really surprised to find out that leasing a brand new car which INCLUDES insurance is actually almost the same as some of the car insurance quotes I've been getting for a ford fiesta that I'm looking to buy. The car would cost me £4k and the cheapest insurance quote so far is £180 a month. Where as on Carleasing.co.uk I've been given a quote for a brand new toyota corolla hybrid that includes full comprehensive insurance with maintenance for £200 a month, and the initial deposit for the car is £500. The lease itself is 3 years with 15k miles/year allowance and I've already been pre approved for the lease. I'm actually surprised on how a £22k car that is fully insured would cost me this little.

That seems incredibly low for that car on 15K annual mileage incl. maintenance and insurance. BTW, you don't pay deposits on car leases, you simply make initial monthly payments upfront, usually a minimum of 3 months so I'm not sure how there's a £500 initial payment on a £200 per month lease. Also, have you taken into account VAT?

If it is as you say then it looks pretty good, go for it.

Sorry I got mixed up. The cost of the lease is £203 and 3 months initial payment is £609 exc VAT. This includes insurance with 15k miles a year. 

So doesn't include VAT then.

LewisA77

Sandtree said:

The obvious question is why your insurance quote is £2,160 on a Fiesta.

Leasing can work out as cost effective but at the end you are left with nothing (best case) whereas if you bought the £4k car how much would it be worth in 36 months? Worst case you end up with bills from the lease company for damage you've caused to their car etc.

Leasing can be convenient but most of us wouldnt be paying close to that on insurance and so may not stack up financially.

I live in one of the worst post code to insure a car. One of main reason I'm considering to lease is because of the low cost which includes insurance, and the ford fiesta that I'm looking to buy for £4k would probably be worth £1k after 3 years considering that I'll be driving around 15k miles/year.

Scrapit

Blimey, thats alot of money for insurance. Have you looked st other models and makes to see if that improves the quote?

ontheroad1970

neilmcl said:

Are you sure it includes fully comp insurance. According to the guide below they only offer 3rd party insurance?

https://www.carleasing.co.uk/car-leasing-with-insurance

It has own damage cover according to that page, though there is a charge for it.