Leasing vs Buying Second Hand car

hrishi

Hi,

I am looking for some advice, I have been leasing for the past 3 yrs and now my terms is coming to an end. I have been looking at a new lease and the average monthly cost will be around £350 a month.
Buying a decent second car i.e. around 3 - 4 yrs old with low mileage is around £20-25k, the price of second cars have gone up.
So basically I not sure considering the current climate, it will be better to lease or buy second car. 
Thanks

Grumpy_chap

hrishi said:

Hi,

I am looking for some advice, I have been leasing for the past 3 yrs and now my terms is coming to an end. I have been looking at a new lease and the average monthly cost will be around £350 a month.
Buying a decent second car i.e. around 3 - 4 yrs old with low mileage is around £20-25k, the price of second cars have gone up.
So basically I not sure considering the current climate, it will be better to lease or buy second car. 
Thanks

There are many variables in that to consider before making the decision, some of which include:

• why do you need a car?
• how much room for people?
• how much space for luggage?
• type of mileage - town / country / motorway
• annual mileage
• any restrictions on car type / age - e.g. employer rules
• how long will you be happy to keep the car?

From those starting points, it is possible to start assessing the options on route to acquire the use of a car.

Flight3287462

If there was ever a time to buy a new car, then it is now.

Here is a selection of Brand New Skoda's to cover all budgets supposedly in stock or soon.

Kodiak £30k
Superb £29k
Karoq   £23k
Kamiq  £19k
Fabia   £17k

But you're probably an Audi man

Grumpy_chap

Flight3287462 said:

If there was ever a time to buy a new car, then it is now.

Why do you say that?
Car prices seem to be inflated at present.

motorguy

Flight3287462 said:

If there was ever a time to buy a new car, then it is now.

Here is a selection of Brand New Skoda's to cover all budgets supposedly in stock or soon.

Kodiak £30k
Superb £29k
Karoq   £23k
Kamiq  £19k
Fabia   £17k

But you're probably an Audi man

Worst time possible, i'd have thought.  Sky high prices new, minimal discounts, no finance incentives.

Herzlos

Grumpy_chap said:

Flight3287462 said:

If there was ever a time to buy a new car, then it is now.

Why do you say that?
Car prices seem to be inflated at present.

The hugely overpriced used car market means the difference between new and used is minimal at the moment.

motorguy

Herzlos said:

Grumpy_chap said:

Flight3287462 said:

If there was ever a time to buy a new car, then it is now.

Why do you say that?
Car prices seem to be inflated at present.

The hugely overpriced used car market means the difference between new and used is minimal at the moment.

Really?

Picking a Karoq from that list, you can buy a 3 year old one for a little over £14K.

https://www.autotrader.co.uk/car-details/202211091516129

Herzlos

Are prices going back to normal then?

Because you're right. I can get a new one for £23k, or a 3 year old one for £14k which seems about right. 45% value after 3 years would be about £10k so it's not that overpriced.

Of course the Karoq got a facelift in 2022 so it's not a like for like comparison either. I'm not familiar with quite how much has changed though.

When I was looking earlier in the year for a different car, I was looking at £18k for 3 years old and £22k new, which seemed like a no brainer.

k3lvc

hrishi said:

Hi,

I am looking for some advice, I have been leasing for the past 3 yrs and now my terms is coming to an end. I have been looking at a new lease and the average monthly cost will be around £350 a month.
Buying a decent second car i.e. around 3 - 4 yrs old with low mileage is around £20-25k, the price of second cars have gone up.
So basically I not sure considering the current climate, it will be better to lease or buy second car. 
Thanks

Your £350pm lease vs £20k for a 3-4yo car aren't comparing apples with apples though are they ?

What are your needs that mean you need a £20k car - a cursory search of 3yo Manufacturer Approved stuff brings up plenty in the £12-£15k marker

Mutton_Geoff

hrishi said:

Hi,

I am looking for some advice, I have been leasing for the past 3 yrs and now my terms is coming to an end. I have been looking at a new lease and the average monthly cost will be around £350 a month.
Buying a decent second car i.e. around 3 - 4 yrs old with low mileage is around £20-25k, the price of second cars have gone up.
So basically I not sure considering the current climate, it will be better to lease or buy second car. 
Thanks

Autotrader has over 8,000 three to four year old cars for less than £10,000 and over 400 at less than £7,000. You need to decide (as other people have said) what your requirements are before committing to another long lease deal.

Flight3287462

Grumpy_chap said:

Flight3287462 said:

If there was ever a time to buy a new car, then it is now.

Why do you say that?
Car prices seem to be inflated at present.

Of course car prices are inflated especially secondhand prices.  In my view the best all round deals are new cars with a bit of discount and they are starting to appear.  Up to 20% on some Skoda's (I don't know about other brands).