Leasing vs Buying Second Hand car

motorguy

Herzlos said:

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.

it depends on the car and the availability but it does seem like we are moving back to normal depreciation on a lot of cars now, even if it is from a previous high

motorguy

Flight3287462 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.

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).

IMHO it seems to be discounts on specific cars and / or very specific models.  If someone can avail of that on a car that suits their needs then great.

I really dont think buying new represents the best value right now overall (with some exceptions), particularly given the finance offers are so poor.

hrishi

Grumpy_chap said:

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.

Thanks for your reply, see the answer below:
I need a car for daily commute
I am looking at a medium / large SUV
Mainly town driving
Annual mileage: 6k
No restrictions, I can use get lease on Business which means no VAT
It depends on the car

hrishi

k3lvc said:

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

For £350pm I am looking at the likes of Hyundai Tucson, KIA sportage, Seat Tarracco. For the second hand car i will probably go for a 7 seater SUV specially if i will keep it for a longer term.

Grumpy_chap

hrishi said:

No restrictions, I can use get lease on Business which means no VAT

Assuming you mean your own VAT-registered Ltd Co. or VAT-registered sole-trader business, if you have a business lease and there is any private use of the car, then only 50% of the VAT can be reclaimed.  Daily commute is private use.  You'd also need to consider BIK liabilities.

For the mileage you do and the vehicle preferences you mention, I would be considering the MG ZS EV.

born_again

VW Id Buzz
Merc EQV

Given your usage EV is just right.