Buy a car outright or lease?!

joshhbowenn

Grumpy_chap said:

joshhbowenn said:

Hi all,
stuck on a decision to lease my next car or buy outright. Both have their pros and cons, unsure which is best financially. I’ll try to lay it out clearly below. 

Buy outright:
No monthly payment, but use all money from current car being sold. Car approx 70k miles. 13ish plate. 

- No left over money from sale of current car. £200pm into savings would leave me with £4800 after two years. 

Lease (2year):
£235 monthly. Lease car value is £31,000. 

- Would have £3K profit from selling current car to put into savings. Plus £100 a month would leave me with £5400 after two years. 

So leasing gives me a chunk into savings but monthly payments. 

Buying outright means nothing into savings, no monthly payment for car, but still need to put £200pm into savings to build it up. So would I see the actual monthly saving as it’s going into savings?! 

Hope its laid out correctly to understand. I’ve been going back and fore both options as they both have pros and cons. 

Appreciate anyones opinions and views. 

What is the reason to change the current car?

Are you comparing like-for-like vehicles between the purchase and the lease?

What annual mileage does the lease permit?  What is the excess mileage charge if that is exceeded?

Thanks. Reason for changing current car is purely because the value has increased so much due to current climate. 3 years ago valued at £11k for part ex and now getting offers of £14k from local garages. So profit to be had and I think it would be silly to keep it.