Is leasing a good alternative to buying?
Discussion
In short, im looking for a car but something worth a few quid. The car i want (3 series) in the spec and colour i want, is going to cost me about 17k
I set my budget at 15k max but this will get me a dog, or something that doesnt feel right. In reality i have a budget of 22k, but that's everything i can get together, and im not spending all my cash on a car. Even with 15k would hurt a lot.
So what about leasing? I usually only keep cars for 12 months, but have kept my current car for over 18. The brand new facelift c-class merc looks lovely, and i suppose the added benefits are that it will be a brand new car with no hidden nasties, loads of warranty and probably less hassle, however it will feel like taking on a second mortgage, however i can keep all my savings safe, which i can then use to pay off bits of the mortgage, or put to a new house in a few years. Obliterating my savings now would knock the house idea back a good few years at least.
Either way, im going to be looking at something that isnt peasant spec, with lots of gadgets and a decent engine.
Is leasing a viable option? Mileage can cost you i know, but i do about 14k per year (max). If so, where is best to look as i've never done this before.
I suppose the alternative is to get a loan on top of my budget (but it still removes a lot of budget) and i'd still be buying used and not new. A loan for a brand new car would probably be amazingly expensive and not practical.
I set my budget at 15k max but this will get me a dog, or something that doesnt feel right. In reality i have a budget of 22k, but that's everything i can get together, and im not spending all my cash on a car. Even with 15k would hurt a lot.
So what about leasing? I usually only keep cars for 12 months, but have kept my current car for over 18. The brand new facelift c-class merc looks lovely, and i suppose the added benefits are that it will be a brand new car with no hidden nasties, loads of warranty and probably less hassle, however it will feel like taking on a second mortgage, however i can keep all my savings safe, which i can then use to pay off bits of the mortgage, or put to a new house in a few years. Obliterating my savings now would knock the house idea back a good few years at least.
Either way, im going to be looking at something that isnt peasant spec, with lots of gadgets and a decent engine.
Is leasing a viable option? Mileage can cost you i know, but i do about 14k per year (max). If so, where is best to look as i've never done this before.
I suppose the alternative is to get a loan on top of my budget (but it still removes a lot of budget) and i'd still be buying used and not new. A loan for a brand new car would probably be amazingly expensive and not practical.
Edited by Wafflesmk2 on Friday 4th May 18:59
Edited by Wafflesmk2 on Friday 4th May 19:02
Leasing contracts I've seen tend to be for 2 years or more (although I've only really browsed the mainstream website, you might be able to get shorter leases). If you like changing your vehicle fairly regularly it makes sense.
It's highly unlikely that you will end up financially better off by leasing - paying off debts is always recommended before starting saving. Also, mortgages are usually the cheapest form of borrowing.
Ultimately, if you can make the monthly payments, there's no reason why not.
It's highly unlikely that you will end up financially better off by leasing - paying off debts is always recommended before starting saving. Also, mortgages are usually the cheapest form of borrowing.
Ultimately, if you can make the monthly payments, there's no reason why not.
Do the sums. The BMW is realistically going to lose £200-250/month in depreciation, maybe more if you pay premium approved BMW prices and then end up trading it in. What other costs will you have which you wouldn't if it was leased?
Assuming the BMW is >3 years old - MOT and associated repairs.
Out of warranty costs - could be nothing, could be hugely expensive.
VED I think is usually included in the lease(?)
I think the lease car makes sense in this situation in the region of £350-400/month, perhaps more for the privilege of a brand new motor. How much does the Merc work out at?
Assuming the BMW is >3 years old - MOT and associated repairs.
Out of warranty costs - could be nothing, could be hugely expensive.
VED I think is usually included in the lease(?)
I think the lease car makes sense in this situation in the region of £350-400/month, perhaps more for the privilege of a brand new motor. How much does the Merc work out at?
Leasing is basically paying the depreciation up front, the shorter the contract the more you have to pay per month.
It makes sense if you can afford it though , the car will cost almost exactly what you budget for, it will have a warranty and the tyres will be brand new as will the car itself and the servicing costs will be very very low.
It makes sense if you can afford it though , the car will cost almost exactly what you budget for, it will have a warranty and the tyres will be brand new as will the car itself and the servicing costs will be very very low.
Dave Hedgehog said:
one of the best things about leasing is you can rag the car to death without having to worry about it
red line from cold and only getting washed on its annual service all par for the course
let the next owner deal with the problems
I often joke about that, but are you being serious?red line from cold and only getting washed on its annual service all par for the course
let the next owner deal with the problems
Because my next car is going to have to be second hand as I can't grow a goatee yet, I'd be annoyed if it was a lemon.
swerni said:
He's clearly a cock, ignore him.
I've leased my Merc as it makes more sence than buying it.
Why on earth would I try and destroy it any more than a car owned?
Playing Devil's Advocaat, there is a lower financial incentive to do so. Selling your own asset, there's an investment in keeping the car in better working order as the length of time you own the car is variable, and the money recouped at the end is likely to be greater. In a lease, you know exactly how long you'll have the car for (usually equal to or less than the warranty period) and you know (near enough) your exact financial outlay. Beyond what they can do you for when you return the car, there is minimal incentive to look after the car to the same degree if you owned it.I've leased my Merc as it makes more sence than buying it.
Why on earth would I try and destroy it any more than a car owned?
Dave Hedgehog said:
one of the best things about leasing is you can rag the car to death without having to worry about it
red line from cold and only getting washed on its annual service all par for the course
let the next owner deal with the problems
Where's the not-sure-if-serious smiley... red line from cold and only getting washed on its annual service all par for the course
let the next owner deal with the problems
swerni said:
whoami said:
obob said:
whoami said:
Why would you do that?
Why would you not? It's a hire car. Just hired for a bit longerI've leased my Merc as it makes more sence than buying it.
Why on earth would I try and destroy it any more than a car owned?
I do find the whole hire car / company car / lease car 'thrash it to death' thing a bit puzzling.
My company car is looked after at least as well as my own cars - weekly wash, vac and wipe down of the interior - I wax it a couple of times a year, and use a detailing spray on it the rest of the time.
My colleagues and clients always comment on how clean and 'organised' my cars are compared with everyone else's cars. Rightly or wrongly, I take pride in that.
My company car is looked after at least as well as my own cars - weekly wash, vac and wipe down of the interior - I wax it a couple of times a year, and use a detailing spray on it the rest of the time.
My colleagues and clients always comment on how clean and 'organised' my cars are compared with everyone else's cars. Rightly or wrongly, I take pride in that.
swerni said:
I disagree
I could spank the tits of the Camaro, the next owner is never going to know.
Maybe at some point when it reaches 80 or 100k and falls apart, someone may notice, next owner certainly wouldn't.
OK, potentially. Depends how much it's ragged and what mileage you sell it at: if it's sold with 79,999 miles on the next owner might well fall into that bracket. It's only speculation.I could spank the tits of the Camaro, the next owner is never going to know.
Maybe at some point when it reaches 80 or 100k and falls apart, someone may notice, next owner certainly wouldn't.
swerni said:
The lease on the Merc is 3 years 36000 miles.
If I drove the Camaro for 3 years and 36000 miles like I stole it, the next owner or the one after would never know
But somewhere down the line someone will have to pay. I think it's an attitude some have when they're young and stupid. Maybe you think the world owes you something so you're getting one back or something, I don't know. But whatever the reason, it's a bummer for the rest of us who can't afford a new car and have to hope the next car we buy, that might be 10 years old, hasn't been owned by some pin-dicked idiot who owned it from new and thought it made him cool to cane the fIf I drove the Camaro for 3 years and 36000 miles like I stole it, the next owner or the one after would never know
k out of his car from cold every day because he didn't have to worry about the bills.Gassing Station | General Gassing | Top of Page | What's New | My Stuff