New Cars - is Leasing going to become the new norm?
Discussion
gizlaroc said:
New Mercedes E220cdi SE which comes with everything now, metallic, leather, 7g tronic plus auto, adaptive led headlights, DAB, media interface, online, camand Nav, parking senors front and rear, heated seats and is a £36,000 car can be leased for £216 a month including vat with £1900 down.
Up that to 18k miles a year and it is still only £238 a month.
From where?Up that to 18k miles a year and it is still only £238 a month.
Loads of them offering it now, new model next year.
Here is one.....
https://www.contracthireandleasing.com/car-leasing...
Here is one.....
https://www.contracthireandleasing.com/car-leasing...
I used to be very much of the 'buy it cash' brigade.
However for a lot of new cars I can absolutely see the appeal. A lot of people aren't that interested in cars - they're interested merely in having a good-quality car-transport service. Instead of having to find a good chunk of cash and then having a depreciating asset sitting on your balance sheet, you buy worry-free motoring services, for a simple monthly fee.
The only caveat being the monthly fee has to be comparable to the overall cost of buying the car outright, but in almost all cases it is - and what's more the cost is a lot more predictable. It can't be long before the manufacturers start chucking insurance and road tax in as part of the deal.
However for a lot of new cars I can absolutely see the appeal. A lot of people aren't that interested in cars - they're interested merely in having a good-quality car-transport service. Instead of having to find a good chunk of cash and then having a depreciating asset sitting on your balance sheet, you buy worry-free motoring services, for a simple monthly fee.
The only caveat being the monthly fee has to be comparable to the overall cost of buying the car outright, but in almost all cases it is - and what's more the cost is a lot more predictable. It can't be long before the manufacturers start chucking insurance and road tax in as part of the deal.
A very big disadvantage of leasing is if your car is stolen or written off within the first few months of ownership.
My experience is that my hot Golf R deal ended up costing allot more than I hoped. Chances of it happening is low, however PCP with GAP negates that risk.. Those big upfront payments will never be insured, unless someone introduces new products to the market..
G
My experience is that my hot Golf R deal ended up costing allot more than I hoped. Chances of it happening is low, however PCP with GAP negates that risk.. Those big upfront payments will never be insured, unless someone introduces new products to the market..
G
kambites said:
Leasing (and/or HP which is never paid off in full) has been the norm for years. I'm pretty sure that well under half of cars are ever fully owned by their first keeper.
I'm talking about the move to straightforward leasing, rather than buying on HP / PCP deals.Is the general public ready to make that step from "well i'm paying it off" to "i'm effectively renting it"?
I'd say currently 90% of new cars are never fully owned by their first keeper.
Gio G said:
A very big disadvantage of leasing is if your car is stolen or written off within the first few months of ownership.
My experience is that my hot Golf R deal ended up costing allot more than I hoped. Chances of it happening is low, however PCP with GAP negates that risk.. Those big upfront payments will never be insured, unless someone introduces new products to the market..
G
You can get GAP insurance or leasing.My experience is that my hot Golf R deal ended up costing allot more than I hoped. Chances of it happening is low, however PCP with GAP negates that risk.. Those big upfront payments will never be insured, unless someone introduces new products to the market..
G
I dont get the hatred of leasing or other ways that dont involve paying cash for the full amount, we bought a year old Fiesta yesterday and the salesman explained all the options despite us telling him we were buying it cash, its a cheap car but its obvious most people dont actually buy them.
My wife is resolutely in the dont buy it if you dont have the cash, but that is why she gets a year old Fiesta and not a brand new Golf GTi or something, but then she isn't bothered as long as she likes it.
I don't lease as I do a tiny mileage and like oddball cars (well, oddball compared to the normal lease stuff) and try to buy when they are in the lowest part of the depreciation curve, leasing for me would be £300 a month to provide the leasing company with an immaculate, low mileage car.
But not everyones circumstance is the same.
I think some people see leasing as cheating, having a car that you cant afford to buy new, but I think a lot of the manufacturers would go bump if they relied on the customers that bought cash, and I think most of those, that are bothered probably cant afford to buy or lease a new car, they soon change their tune when they can get a lovely new shiny thing and can afford it.
My wife is resolutely in the dont buy it if you dont have the cash, but that is why she gets a year old Fiesta and not a brand new Golf GTi or something, but then she isn't bothered as long as she likes it.
I don't lease as I do a tiny mileage and like oddball cars (well, oddball compared to the normal lease stuff) and try to buy when they are in the lowest part of the depreciation curve, leasing for me would be £300 a month to provide the leasing company with an immaculate, low mileage car.
But not everyones circumstance is the same.
I think some people see leasing as cheating, having a car that you cant afford to buy new, but I think a lot of the manufacturers would go bump if they relied on the customers that bought cash, and I think most of those, that are bothered probably cant afford to buy or lease a new car, they soon change their tune when they can get a lovely new shiny thing and can afford it.
When the US were talking about taking in house finance away from manufacturers to make it a fairer market for the consumer a few years back Ford said something along the lines of " We are now a finance house, the cars are just a tool to help us sell our product....the finance."
As we go electric I think we will move to a near on 100% rental market for cars.
As we go electric I think we will move to a near on 100% rental market for cars.
daemon said:
I'm talking about the move to straightforward leasing, rather than buying on HP / PCP deals.
My point was that there's no real difference between the two unless you actually pay the balance at the end and most people don't. Most people who PCP/HP treat it as a lease anyway. 
That's the wife's. Besides, at least it's not actually worth anything so it can't lose money. 
Annoyingly I can comfortably afford this;
https://www.contracthireandleasing.com/car-leasing...
But I have a poor credit history due to ex gf issues
https://www.contracthireandleasing.com/car-leasing...
But I have a poor credit history due to ex gf issues
kambites said:
daemon said:
I'm talking about the move to straightforward leasing, rather than buying on HP / PCP deals.
My point was that there's no real difference between the two unless you actually pay the balance at the end and most people don't. Most people who PCP/HP treat it as a lease anyway. Just wondering if it will become the new norm.
TheAngryDog said:
While I like owning cars, if I could get approved for leasing and could afford the monthly payments on something interesting (F10 M5 for instance) then I'd have to seriously consider it I think.
What about something like this for £350 a month??http://www.hotukdeals.com/deals/jaguar-xf-3-0-v6-s...
daemon said:
TheAngryDog said:
While I like owning cars, if I could get approved for leasing and could afford the monthly payments on something interesting (F10 M5 for instance) then I'd have to seriously consider it I think.
What about something like this for £350 a month??http://www.hotukdeals.com/deals/jaguar-xf-3-0-v6-s...
The leading argument always compares to buying new for cash.
However, my problem is that leasing and schemes like it encourage people to spend far too much of their income on cars than they should.
I.e. Is buying a £40k white Audi really sensible if you are on £60k a year,, haven't paid your house off and you have low savings and pension provision.
If the only choice was to pay cash, much less people would fall into this trap.
However, my problem is that leasing and schemes like it encourage people to spend far too much of their income on cars than they should.
I.e. Is buying a £40k white Audi really sensible if you are on £60k a year,, haven't paid your house off and you have low savings and pension provision.
If the only choice was to pay cash, much less people would fall into this trap.
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