Calculating if a lease deal is good?

movingforward2010

Sorry this might sound a bit stupid.
I’d read somewhere a while back that if you add up the monthly cost e.g £199x35 + admin fee + deposit and divide it by the cost of the car bought out right you get a percentage that will tell you if the lease is a good deal.

it was something like 30% > bad
20-30 good

10-20 great.


like I’ve  said I’ve probably got the calculation totally wrong.

can anyone advise/explain?

thank you 

DrEskimo

People always use the P11D or RRP price for these things, which I think makes the lease seem better value than it actually is. 

Some cars can have very large discounts off RRP, and this should be considered.

AdrianC

movingforward2010 said:

I’d read somewhere a while back that if you add up the monthly cost e.g £199x35 + admin fee + deposit and divide it by the cost of the car bought out right you get a percentage that will tell you if the lease is a good deal.

it was something like 30% > bad
20-30 good

10-20 great.

That's simplistic to the point of just being wrong.

10-20% three-year depreciation alone, even before the cost of borrowing the price of the car, is unrealistically low.

Identify what car you want. Then find the best lease deal for that car.