Leasing vs Buying - what are the best options for the FIL
Discussion
Hi all,
My FIL has just been made redundant and is in a position to either buy or lease a car.
He like BMW's, Audi and the similar. He's quite keen on a lease deal but having never considered this I'm totally confused.
What is the deposit for?
Where can he / I search for good deals?
Is the leading the best thing if you want "everything" included?!
Can you get deals with insurance, tax, servicing and tires included? (Just like it would have been with a company car?
TIa
My FIL has just been made redundant and is in a position to either buy or lease a car.
He like BMW's, Audi and the similar. He's quite keen on a lease deal but having never considered this I'm totally confused.
What is the deposit for?
Where can he / I search for good deals?
Is the leading the best thing if you want "everything" included?!
Can you get deals with insurance, tax, servicing and tires included? (Just like it would have been with a company car?
TIa
steve-5snwi said:
If he has no job then surely the last thing he wants is the debt of a car or lease.
He is in a fairly good situation but I agree. Problem is he has never actually owned a car. From leaving Uni to now (62) he has had company cars*. With this he has never had to compete with the idea of servicing, unreliable cars etc and all that goes with having a company car. (Normally a Lex Auto Lease 320d or similar). - this will cause issues with insurance I guess also?!
benjijames28 said:
Do you really need a new car?
No. And possibly the way forward would be to buy 1 year old etc. Problem is, the MIL who is very set in her ways buys a new car every 4 years without fail and sells the out going car to Mrs Joe5y at just less than trade in price = a fairly good deal that gets the Mrs a 1 owner, 4 year old, low mileage, low cost car. Currently a VW Up!. Pile of merde.Speed Badger said:
"Righto, I've just been made redundant - time to get that Nissan GT-R I've been promising myself!"
It will cheer me up
. Until it needs new tyres 
To be fair, some years ago a friend of mine who had just been made redundant (and didn't have any new job lined up at the time) turned up in front of my house in a sky-blue '80s 911 turbo. It will cheer me up
. Until it needs new tyres It cost... almost exactly the same as his redundancy cheque was for
Told me he'd come to my house as he "knew I'd appreciate it" (he was right, it was brutal
) ...and he hadn't quite decided what he was going to tell his wife yet!jjr1 said:
'My FIL has just been made redundant and is in a position to either buy or lease a car. '
Is this an oxymoron?
The chap is 62, good chance he is now on a pension so I can't any issue, more like the redundancy is a bonus for him. My dad took redundancy at 50, paid off the mortgage, started receiving his pension then decided to go self employed to stop himself getting bored. The redundancy was a nice cash bonus.Is this an oxymoron?
Don't know the circumstances, so won't comment on whether it's right or wrong, but if he does want to lease, this site is an aggregator for lots of lease providers - you can typically can find some great deals amongst the hundreds it throws up..
https://www.contracthireandleasing.com/personal/ca...
https://www.contracthireandleasing.com/personal/ca...
I just came out of a lease in December and it worked well for me. I had a car on 24 months/10k miles pa/6 months deposit with VW Financial Services and it was supplied direct from the VW dealership (just happened to be the best deal in the market at the time).
The road tax is included in the lease in the UK and maintenance is an option as are tyres. The exit penalty for the deal I got was severe; pay up the remainder of the lease! This is likely harsh due to the excessively good deal I got.
Be aware that with leasing you have to:-
As I said at the start, it worked well for me in that the lease was cheaper than the depreciation on a car that dealerships were not discounting for sale. I am also someone that really looks after cars which helps as you can't hand them back dirty, scruffy and unloved.
For the hand back I had to have 2 wheels refinished (£200), a small scuff repaired (I risked non-approved @ £150 through Chipsaway as it was supposed to be invisible and it worked!), replacement windscreen (£70 excess). I went to 24k miles which was 4k over the lease agreement.
During the lease I had 2 services (£350) and one set of 4 premium tyres (£360).
I hope that helps. Good luck.
The road tax is included in the lease in the UK and maintenance is an option as are tyres. The exit penalty for the deal I got was severe; pay up the remainder of the lease! This is likely harsh due to the excessively good deal I got.
Be aware that with leasing you have to:-
- get a great deal at the start - really do your research on th e provider and shop around. Ensure that the provider is a member of the BVRLA and aligns to their code of practice
- consider the impact of excess mileage and ensure the cost per mile they quote includes VAT and is not excessive (I had 7p per mile VAT included and it was cheaper to go 10k miles over than to commit to 5k miles per year extra in the lease terms and monthly payments)
- accept that you get nothing back at the end - it is all "money gone"
- pay for approved repairs not included, or over an above the guidance in the "BVRLA Fair Wear and Tear Policy" that you would just leave if it were a purchased car being sold on (ie scuffs, dings, screen chips etc). You can find the policy online for a read through.
- replace tyres with premium branded replacements - I would ordinarily use mid-range eg: Yokohama
- maintain dealership service history and approved repairs
- be aware that dealership advertised offers of free servicing etc only apply to purchased cars, not leased
- check that servicing aligns to your usage - ie long term servicing vs annual
As I said at the start, it worked well for me in that the lease was cheaper than the depreciation on a car that dealerships were not discounting for sale. I am also someone that really looks after cars which helps as you can't hand them back dirty, scruffy and unloved.
For the hand back I had to have 2 wheels refinished (£200), a small scuff repaired (I risked non-approved @ £150 through Chipsaway as it was supposed to be invisible and it worked!), replacement windscreen (£70 excess). I went to 24k miles which was 4k over the lease agreement.
During the lease I had 2 services (£350) and one set of 4 premium tyres (£360).
I hope that helps. Good luck.
I know a few people of a similar age who would love to be offered redundancy,
mortgagae paid, no outstatnding debt, only a few years off retirement and a nice big lump sum in the bank.
I would say unless he's only keeping the car for a couple of years leasing makes little sense,
he'd be better off deciding on what make and model he would like, check places like DTD, broadspeed etc to get the best price, then compare that with the price of nearly new to make an informed decision
^^^ Premium tyres? Was that really a contract term? Never heard that before, they usually specify like-for-like replacement but I've never heard them specifying a "premium tyres" before.
OP - generally taking out maintenance on a lease car is considerably more expensive than just sorting it out yourself. You're effectively borrowing the money to carry out the maintenance with interest on top and some margin for the supplier to cover more expenses than normal, it just doesn't make sense unless you really must have fixed monthly outgoings.
There are deals to be had, but generally speaking leasing is an expensive way to get a car - the monthlies look attractive but if you actually do a hard-headed comparison against other methods of funding a car and what you have left at the end it doesn't work out.
Before I get jumped on by the lease bargain crowd, there ARE exceptions which can be very good deals, but they tend to be relatively short lived and require you to be flexible on make, model and spec. If your FIL has his sights set on a particular car then he'll need to be very, very lucky to find a genuinely good lease deal on it.
There are no hard and fast rules, your FIL will have to do the maths for himself, but do check out brokers like carwow and drivethedeal, they are ideal for someone who has no trade-in and is looking for a new car. Don't get something that's only a year old, it's very rare that it makes sense given the large discounts generally available on new cars via a broker which will also usually come with manufacturer subsidised finance that you don't get on used cars.
OP - generally taking out maintenance on a lease car is considerably more expensive than just sorting it out yourself. You're effectively borrowing the money to carry out the maintenance with interest on top and some margin for the supplier to cover more expenses than normal, it just doesn't make sense unless you really must have fixed monthly outgoings.
There are deals to be had, but generally speaking leasing is an expensive way to get a car - the monthlies look attractive but if you actually do a hard-headed comparison against other methods of funding a car and what you have left at the end it doesn't work out.
Before I get jumped on by the lease bargain crowd, there ARE exceptions which can be very good deals, but they tend to be relatively short lived and require you to be flexible on make, model and spec. If your FIL has his sights set on a particular car then he'll need to be very, very lucky to find a genuinely good lease deal on it.
There are no hard and fast rules, your FIL will have to do the maths for himself, but do check out brokers like carwow and drivethedeal, they are ideal for someone who has no trade-in and is looking for a new car. Don't get something that's only a year old, it's very rare that it makes sense given the large discounts generally available on new cars via a broker which will also usually come with manufacturer subsidised finance that you don't get on used cars.
deltashad said:
Jesus. Worse than a bunch of women. Did I accidentally click on mumsnet?
Op. Don't let him lease. This is flushing your inheritance don't the swanny.
S
I think you said he likes BMWs? Have a chat with him reminiscing about e34 M5s or e24 m6. something that will appreciate. Tell him it's what he's worked his whole life for and deserves it.
This could be an opportunity for an investment in your future.
At least they appear to have understood the topic under discussion rather than posting their pipedreams.Op. Don't let him lease. This is flushing your inheritance don't the swanny.
S
I think you said he likes BMWs? Have a chat with him reminiscing about e34 M5s or e24 m6. something that will appreciate. Tell him it's what he's worked his whole life for and deserves it.
This could be an opportunity for an investment in your future.
charltjr said:
......^^^ Premium tyres? Was that really a contract term? Never heard that before, they usually specify like-for-like replacement but I've never heard them specifying a "premium tyres" before......
That was in the terms. Maybe specific to VWFS leases, but it was absolutely clear. I even got them to email a list of acceptable brands. Still, at £360 for 4 (25% off deal at Kwikfit and fitted at home) it didn't actually hurt me at all...... and all 4 tyres had to be identical brand and model since it was a 4WD car (Golf R). If it were 2WD then the tyres on the same axle had to be identical.jjr1 said:
'My FIL has just been made redundant and is in a position to either buy or lease a car. '
Is this an oxymoron?
If he's 62 he's probably paid the mortgage off. Probably received a nice redundancy payout. Can probably retire and collect pension (plus pension lump sum).Is this an oxymoron?
He's had a company car for years and years so I'm guessing he's in the kind of job where the above holds true.
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