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Buying a car versus leasing a car ?

edited 30 November -1 at 1:00AM in Motoring
3 replies 966 views
aliflint77aliflint77 Forumite
19 Posts
edited 30 November -1 at 1:00AM in Motoring
Morning all,

Im fortunate enough to have a brother who works for hsbc which means i can lease a new c class merc for approx £400

the lease is up soon and i wanted to work out how much if any i would save on leasing another car or buying a car for about 7k

I have good credit rating

i completed the below excel calculations but not sure if its right ?

pls let me know yr opinions :money:

£ 7,000.00 Jul-04 £ 10,000.00 Jul-04 monthly year monthly year 7k for 3yrs £ 245.00 10k for 3yrs £ 350.00 servicing £ 33.00 £ 396.00 servicing £ 33.00 £ 396.00 mot £ 5.00 £ 30.00 mot £ 5.00 £ 30.00 tax £ 12.00 £ 180.00 tax £ 12.00 £ 180.00 tyres £ 33.00 £ 396.00 tyres £ 33.00 £ 396.00 warranty £ 40.00 warranty £ 40.00 £ 368.00 £ 473.00 at end of loan car at end of loan car worth minus 1200 a year worth minus 1200 a year £ 3,400.00 divided by 3 = 1133 £ 3,400.00 divided by 3 = 1133 divided by 12 = 94 divided by 12 = 94 £94 £94 £ 274.00 £379.00

Replies

  • I can't make head or tale of your calculations I'm afraid.

    But a £7k loan (from bank) at +/- 7.1% will cost you about £217/month over 3 years. You will of course then have a car which will have a residual value at the end of that time.

    Taking a base Corsa on a PCP (Sainsburys Bank @ 8.9% value £7492) on 0% deposit you will pay £162/month with a final payment of £3,090.

    So you can afford to spend £130-£140 (before VAT) on a 3 year lease deal.

    I am slightly confused because your £7k limit on buying does not equate to a Merc C Class at £400. A £400 monthly lease payment will get you a car valued around £30k

    All calculations assume 10,000 miles per annum.
  • Yeah I carnt understand where he has got these figures from either it dont really make sence what he has put.
  • marlotmarlot Forumite
    4.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    spiny wrote: »
    Yeah! I have three rental cars and running my business very smoothly. I did hire from http://www.frontierleasing.co.uk/ Frontier Vehicle Leasing provides a complete vehicle acquisition and management service to businesses throughout the UK. It’s really very good and reliable for hiring cars. Hope you will get best deal.
    Best of luck!

    Spam reported.
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