New Cars - is Leasing going to become the new norm?
Discussion
Sump said:
Is he allowed to take the trim out and change it for another colour? And hardwire install his dash cam? Is he allowed to change the alloys to something else?
If you want to do that to a car, I'm not sure a brand new car purchase is the right way forward. And Leasing is definitley not the way forward.Sump said:
ORD said:
Of course it's his car. He has the right to use it for a defined period. Ownership itself is just a bundle of rights. My house is 'mine' despite being a long lease rather than freehold.
Is he allowed to take the trim out and change it for another colour? And hardwire install his dash cam? Is he allowed to change the alloys to something else?
t. Why would they?Sump said:
Still a way for someone who doesn't have the financial resources to get into one.
Waits for the, I know millionaires leasing as they don't want to tie up £100k in a car brigade
New cars depreciate heavily, there's a significant cost attached to either buying or leasing one, the smart thing to do is decide which option costs less for the required ownership period then choose that option, if it's affordable. I'm currently leasing a car with a list price of £46k for a two year period at a total cost of £10k inc VAT, I thought (and still think) that the cost of depreciation over the same period would have been greater if I'd paid cash for the car and owned it outright. Leasing has the added benefits to me of a) not tying up a big chunk of cash in a depreciating asset, b) not having to go through the ballache of selling privately or getting ripped of in a part exchange deal when it's time to change, and c) the cost is fixed and defined. So for my choice of car leasing appears to be cheaper and easier than the alternative of buying, it's that simple.Waits for the, I know millionaires leasing as they don't want to tie up £100k in a car brigade
I know people (well one actually but at least I'm honest 
) who lease (I think it could be PCP though) cars because they believe rightly or wrongly that after the end of the warranty they could be faced with big and unexpected bills for blown turbos, DPFs, and prefer the predictable outgoings, even if they may be slightly higher. As cars get more and more complicated and expensive to repair then it seems likely that leasing/PCP (effectively the same for most people) will become more the norm.
I accept that there will be an equilibrium where people will only pay very low amounts for secondhand cars because of the potential bills, which will mean that lease costsw ill have to rise to cover this, but perhaps we are still a long way off this?
) who lease (I think it could be PCP though) cars because they believe rightly or wrongly that after the end of the warranty they could be faced with big and unexpected bills for blown turbos, DPFs, and prefer the predictable outgoings, even if they may be slightly higher. As cars get more and more complicated and expensive to repair then it seems likely that leasing/PCP (effectively the same for most people) will become more the norm.I accept that there will be an equilibrium where people will only pay very low amounts for secondhand cars because of the potential bills, which will mean that lease costsw ill have to rise to cover this, but perhaps we are still a long way off this?
Justin Case said:
I know people (well one actually but at least I'm honest ) who lease (I think it could be PCP though) cars because they believe rightly or wrongly that after the end of the warranty they could be faced with big and unexpected bills for blown turbos, DPFs, and prefer the predictable outgoings, even if they may be slightly higher. As cars get more and more complicated and expensive to repair then it seems likely that leasing/PCP (effectively the same for most people) will become more the norm.
I accept that there will be an equilibrium where people will only pay very low amounts for secondhand cars because of the potential bills, which will mean that lease costsw ill have to rise to cover this, but perhaps we are still a long way off this?
Some truth in that. The real costs of complexity will become apparent after quite a time lag.) who lease (I think it could be PCP though) cars because they believe rightly or wrongly that after the end of the warranty they could be faced with big and unexpected bills for blown turbos, DPFs, and prefer the predictable outgoings, even if they may be slightly higher. As cars get more and more complicated and expensive to repair then it seems likely that leasing/PCP (effectively the same for most people) will become more the norm.I accept that there will be an equilibrium where people will only pay very low amounts for secondhand cars because of the potential bills, which will mean that lease costsw ill have to rise to cover this, but perhaps we are still a long way off this?
otolith said:
Because for some people a car is a signifier of social status, and driving one that you don't own outright is seen as "cheating".
I don't think that's the only reason though - I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term (see the example leasing figures on the other thread for an M5)I understand the whole convenience aspect, hassle-free motoring blah blah but I'm sure you could buy any 3 year old Honda, Toyota, Mazda etc and have pretty reliable motoring at a fraction of the cost (I also understand that's not very PH though!)
I think it's an age thing too - if you ran of poll of what were your first few cars, those in their 40's-50's would prbably have a Mini in there somewhere, a Fiesta/Escort, boggo 205 etc, After a few years of running those, you'd have saved up enough to get something a bit better (a bit like moving up the housing ladder I suppose).
If you asked those in their 20's you'd probably get M135i, Golf R, C63 etc, (a bit like having a penthouse apartment as your first home
) You're only young once though so go for it (just don't complain about not having enough for a house deposit at the same time 
)M5Fan said:
I don't think that's the only reason though - I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term (see the example leasing figures on the other thread for an M5)
I understand the whole convenience aspect, hassle-free motoring blah blah but I'm sure you could buy any 3 year old Honda, Toyota, Mazda etc and have pretty reliable motoring at a fraction of the cost (I also understand that's not very PH though!)
I think it's an age thing too - if you ran of poll of what were your first few cars, those in their 40's-50's would prbably have a Mini in there somewhere, a Fiesta/Escort, boggo 205 etc, After a few years of running those, you'd have saved up enough to get something a bit better (a bit like moving up the housing ladder I suppose).
If you asked those in their 20's you'd probably get M135i, Golf R, C63 etc, (a bit like having a penthouse apartment as your first home) You're only young once though so go for it (just don't complain about not having enough for a house deposit at the same time )
You should then also be surprised why people buy new cars at all, after the two year lease you may not own anything but it will have cost roughly the same or sometimes less than it would have to buy the same car when you factor in depreciation.I understand the whole convenience aspect, hassle-free motoring blah blah but I'm sure you could buy any 3 year old Honda, Toyota, Mazda etc and have pretty reliable motoring at a fraction of the cost (I also understand that's not very PH though!)
I think it's an age thing too - if you ran of poll of what were your first few cars, those in their 40's-50's would prbably have a Mini in there somewhere, a Fiesta/Escort, boggo 205 etc, After a few years of running those, you'd have saved up enough to get something a bit better (a bit like moving up the housing ladder I suppose).
If you asked those in their 20's you'd probably get M135i, Golf R, C63 etc, (a bit like having a penthouse apartment as your first home
) You're only young once though so go for it (just don't complain about not having enough for a house deposit at the same time )New cars are expensive to run for the first two years however you go about paying for them.
To be fair I'm not sure there's that many 20 year olds leasing C63's (they aren't cheap to lease) but is there are why does it matter if they can afford the payments over the term?
chrispmartha said:
You should then also be surprised why people buy new cars at all, after the two year lease you may not own anything but it will have cost roughly the same or sometimes less than it would have to buy the same car when you factor in depreciation.
New cars are expensive to run for the first two years however you go about paying for them.
To be fair I'm not sure there's that many 20 year olds leasing C63's (they aren't cheap to lease) but is there are why does it matter if they can afford the payments over the term?
I can understand why people buy new cars and keep them for at least 5+ years, I couldn't understand why you'd buy one and sell it after 2 though. It doesn't matter what they spend their money on (I said 'you're only young once so go for it!') they can spend it on crack and annual subscriptions to Practical Caravaner if they want to, it's a free country New cars are expensive to run for the first two years however you go about paying for them.
To be fair I'm not sure there's that many 20 year olds leasing C63's (they aren't cheap to lease) but is there are why does it matter if they can afford the payments over the term?
Sump said:
In other countries they don't let the poor folks have dreams and ambitions. They don't let them get where they shouldn't be either. Over here it's completely the opposite with access to credit etc etc.
Still don't understand why.
So you're saying only poor people finance or lease?Still don't understand why.
Mandat said:
otolith said:
Because for some people a car is a signifier of social status, and driving one that you don't own outright is seen as "cheating".
Do people really think this way?It does bemuse me that we're on a motoring enthusiast forum and there still this "attitude" towards leasing and PCP deals.
Surely if people can afford the payments and want the car then thats a good thing. Do we really need the "i'm considerably richer than ewe" comments from the (alleged) cash buyers?
chrispmartha said:
Scoredraw said:
wemorgan said:
I can't see it changing much from the present status. If too many new cars are leased then the main dealers will have too many second hand cars to move on in 2-4 years.
......and if it does, the bottom falls out of the 2nd hand market - great for buyers like me (keep up the good work you lucky leasers)still good for 2nd hand buyers, although I'm not sure Id personally want to buy an ex lease car, I'm sure many of them aren't treated with the care and respect of owned cars.
Edited by chrispmartha on Thursday 9th July 13:47
M5Fan said:
I don't think that's the only reason though - I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term (see the example leasing figures on the other thread for an M5)
That is just the difference between being tight or not though. M5Fan said:
I don't think that's the only reason though - I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term (see the example leasing figures on the other thread for an M5)
If you bought brand new with cash, then sold after three years you'd have nothing to show for it either?In fact, even if you dont sell it, you've still lost that amount of value in your asset.
Buying with cash doesnt stop the car from depreciating.
M5Fan said:
I understand the whole convenience aspect, hassle-free motoring blah blah but I'm sure you could buy any 3 year old Honda, Toyota, Mazda etc and have pretty reliable motoring at a fraction of the cost (I also understand that's not very PH though!)
True, though if you want a new m5, why would you settle for a three year old Honduh Accord?M5Fan said:
I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term
At the very least there would have been the benefit of having the use of a new car over the time period, which in itself has an intrinsic value. The point is that some people are happy to pay the cost to receive that benefit, whilst others are not. Mandat said:
M5Fan said:
I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term
At the very least there would have been the benefit of having the use of a new car over the time period, which in itself has an intrinsic value. The point is that some people are happy to pay the cost to receive that benefit, whilst others are not. Gassing Station | General Gassing | Top of Page | What's New | My Stuff