Car leasing vs outright purchase?

GDB2222

My son has been offered an Ora 3 for a down payment of £1100 and £125 pm over 24 months. That works out at £4k lease payments over the 2 years.

The price of the car is £32k to buy it outright, and assuming 25% depreciation over two years, the depreciation would be £8k say. 

How come leasing is so much cheaper than the depreciation? 

Mildly_Miffed

Because the manufacturer are subsidising a supply of guaranteed low-mileage used ones in two years time.

Veteransaver

That is a very good deal, where is he getting the lease at that price?
Edit, found it, that looks great deal. Ideal second car

flashg67

Lease companies negotiate large discounts on the purchase price too

GDB2222

The subsidy the manufacturers are putting into this looks like around £8k. That’s £4k to cover some of the depreciation and £4k financing costs. If instead they simply dropped the price by £8k, that would bring it down to £24k, which would be rather tempting. 

noitsnotme

I had to Google the Ora 3 as had never heard of it before.  I now realise the car is actually an Ora 03.  The Ora 3 is an intimate “toy” for ladies.  What an unfortunate coincidence for the car manufacturer.

daveyjp

Leasing is cheaper because its an unheard of manufacturer with absolutely no track record or market share in the UK trying to sell EVs which are still a niche market, they need these things out on the road.

Looking at how other EVs are depreciating, in 2 years it will likely lose nearer 50% than 25%, buying one outright is not something I'd even consider.

born_again

Ora is Great Wall Motor Co


(GWM) is a Chinese privately owned automobile manufacturer headquartered in Baoding, Hebei. Founded in 1984, it is currently the eighth largest automobile manufacturer in China, with 1.281 million sales in 2021.

https://en.wikipedia.org/wiki/Great_Wall_Motor

400ixl

You have picked a bit of an anomaly to do the comparison with.

Ora is a fairly new brand to the UK and trying to establish itself here (big in China though). They are trying to do so as an upper market brand, have OTR priced it accordingly, but know that very few are going to be willing to pay that today. So they heavily subsidise the lease options to get then on the road.

Saying that, with the way the EV market and technology is changing at the moment, its one of the automotive brackets where leasing rather than buying may be a better bet.

Goudy

noitsnotme said:

I had to Google the Ora 3 as had never heard of it before.  I now realise the car is actually an Ora 03.  The Ora 3 is an intimate “toy” for ladies.  What an unfortunate coincidence for the car manufacturer.

Is that intimate toy suitable for a Hyundai Kona in Portugal?

noitsnotme

Goudy said:

noitsnotme said:

I had to Google the Ora 3 as had never heard of it before.  I now realise the car is actually an Ora 03.  The Ora 3 is an intimate “toy” for ladies.  What an unfortunate coincidence for the car manufacturer.

Is that intimate toy suitable for a Hyundai Kona in Portugal?

Had to look that up.  https://www.news.com.au/technology/innovation/motoring/on-the-road/the-car-names-that-you-cant-say-in-some-countries/news-story/c8fbfabb4203b4850d3d65bfa1a38c27?amp