Good deal or not ?

zermattbusby

I'm considering either outright purchasing or Contract hiring one of the vehicles below

A. Vauxhall Astra 1.4 SXI Quoted new £11400.00 OTR
or 3+23 Payments of £173.90 inc VAT. 10000 mls Contract hire

B. Vauxhall Astra 1.6 SXI Quoted new £13000.00 OTR
or 3+23 Payments of £186.82 inc VAT. 10000 mls Contract hire

Any advise as to whether purchasing out right or hiring either model would be much appreciated Thanks in advance.

davetrousers

What do you mean by

3+23 Payments of £173.90 inc VAT. 10000 mls Contract hire ?

zermattbusby

davetrousers wrote: »

What do you mean by

3+23 Payments of £173.90 inc VAT. 10000 mls Contract hire ?

Basically it means hiring the Car instead of buying it :-

3 x £173.90 = £521.70. Then 23 months x £173.90 = £3999.00

Maximum of 10000 miles P/A

AdrianHi

zermattbusby wrote: »

I'm considering either outright purchasing or Contract hiring one of the vehicles below

A. Vauxhall Astra 1.4 SXI Quoted new £11400.00 OTR
or 3+23 Payments of £173.90 inc VAT. 10000 mls Contract hire

B. Vauxhall Astra 1.6 SXI Quoted new £13000.00 OTR
or 3+23 Payments of £186.82 inc VAT. 10000 mls Contract hire

Any advise as to whether purchasing out right or hiring either model would be much appreciated Thanks in advance.

I've done the figures of Corsa's and Astra's before, definitely lease it, much cheaper. Lets check out the figures again to be sure.
Purchased for £11400 - £6486 (24 months residual value according to What Car) = £4914 loss to depreciation.
Lease on 3+23 Payments of £173.90 inc VAT = £4521
So leasing is cheaper than the depreciation cost alone, but buying the car also means higher monthly loan payments and / or more cash tied up in the car that you could be investing or reducing other debts like a mortgage which will save you even more money.
Don't get distracted by the 0% finance deals Vauxhall dealers are offering, it does not help, leasing (or buying something that holds it's value better even with finance charges) is still cheaper.
This works for the Astra as the leasing companies get them at big discounts and pass the savings on in the form of lower monthly lease charges. It does not work this way for all cars, most VW''s for example are cheaper buying then selling than leasing.

zermattbusby

Thanks very much Adrian for your interesting thoughts and advise + with it being contract hire the only cost I should incur over the two years is insurance and fuel. With regards to the two model options which one would seem the better value in your opinion ?

1.4 - £173.90 - £11400.00 or 1.6 - £186.82 - £13000.00

Thanks again

AdrianHi

zermattbusby wrote: »

Thanks very much Adrian for your interesting thoughts and advise + with it being contract hire the only cost I should incur over the two years is insurance and fuel. With regards to the two model options which one would seem the better value in your opinion ?

1.4 - £173.90 - £11400.00 or 1.6 - £186.82 - £13000.00

Thanks again

The answer for either of these two is still contract hire / lease, after that it really depends on how fast you want to go and how much you are willing to spend.
Going back to 2000 the older 1.4 Astra I drove for 3 weeks on business was pretty decent on the motorway, quite nippy, not that different from my Dad's 1.6 Astra of the same age which I have also driven. 1.6 a little quieter at motorway speed.
So this newer 1.4 is probably similar and perfectly adequate.
If it was me I'd have the 1.6, especially if doing more motorway miles and because my tastes say 0-60 in about 8 seconds is ideal and the 1.6 at least gets closer to this. But not everyone feels the need to go this fast though...

zermattbusby

AdrianHi wrote: »

The answer for either of these two is still contract hire / lease, after that it really depends on how fast you want to go and how much you are willing to spend.
Going back to 2000 the older 1.4 Astra I drove for 3 weeks on business was pretty decent on the motorway, quite nippy, not that different from my Dad's 1.6 Astra of the same age which I have also driven. 1.6 a little quieter at motorway speed.
So this newer 1.4 is probably similar and perfectly adequate.
If it was me I'd have the 1.6, especially if doing more motorway miles and because my tastes say 0-60 in about 8 seconds is ideal and the 1.6 at least gets closer to this. But not everyone feels the need to go this fast though...

Yes I agree, after all its only approx £335.00 difference over the two years.

Thanks again Adrian.

AdrianHi

zermattbusby wrote: »

Yes I agree, after all its only approx £335.00 difference over the two years.

Thanks again Adrian.

You've got a pretty good discount on buying new to compare with which makes it a closer call. The leasing option would appeal to be for lower monthly payment (easier to deal with) and not having to sink cash into the car which yields a saving of a few hundred more over the term via investment or reducing a mortgage if you have one.
Must admit I'm wondering why you don't go for a 36 month lease which would be better value and you would still have a car under warranty.

nickmack

zermattbusby wrote: »

with it being contract hire the only cost I should incur over the two years is insurance and fuel.

If you're not on a maintenance package, you'll need to pay for servicing.

hewhoisnotintheknow

i know its not what you asked but all of the above options seem pricey, granted i dont know your personal circumstances so this might be better for you than buying outright

Is buying a 1 year old car an option?

scoobydoo1969

Deffo lease a car, will see used car prices drop greatly over the next 12 months, always get mine from Crystal Lease. www.crystallease.co.uk