New Cars - is Leasing going to become the new norm?
Discussion
In todays society everyone wants new and wants it now so not all but most people that lease a car because they have not got the money to buy new so lease a car as they can afford it as they have a good monthly income and at the end of the day leasing a car for £250 a month is the same as £80 for Sky.
These lease deals are very tempting and in many ways can work out cheaper that buying a car for cash or finance.
These lease deals are very tempting and in many ways can work out cheaper that buying a car for cash or finance.
jdw1234 said:
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.
I get what you are saying, but there is a trade of between having nice stuff and being sensible, I reckon there are a lot of people that are overcommitted though as leasing does put nice cars into the reach of those who otherwise could never afford them new, the temptation is to get something that is realistically beyond your means and you get a new premium car instead of a three year old bread and butter one.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.
I could afford that M5 from my spare cash each month, but it would mean compromises elsewhere, I say afford but really mean, I could pay for it, realistically it is out of my league, another £1500 spare a month, then I would say I could comfortably afford it.
btcc123 said:
In todays society everyone wants new and wants it now so not all but most people that lease a car because they have not got the money to buy new so lease a car as they can afford it as they have a good monthly income and at the end of the day leasing a car for £250 a month is the same as £80 for Sky.
Its not that they think "I havent got the money for a new car, but i really want one so i'm going to lease it", they think "For £250 a month I can get this new car...."Subtle difference.
gizlaroc said:
Loads of them offering it now, new model next year.
Here is one.....
https://www.contracthireandleasing.com/car-leasing...
That's a business lease - which will be cheaper (and unavailable to) a personal leaseHere is one.....
https://www.contracthireandleasing.com/car-leasing...
Plus I can see the benefits to leasing. The thing with leasing is that to make it work is to stay in the leasing form factor.
Leasing makes sense in my opinion, but I'm in IT so software-as-a-service is something I've had experience of.
Yes you don't even own it, but you're always likely to need to drive and the benefits of always having the latest, greatest versions of things outweigh the downsides.
I've not personally leased yet, but the numbers certainly are tempting.
Yes you don't even own it, but you're always likely to need to drive and the benefits of always having the latest, greatest versions of things outweigh the downsides.
I've not personally leased yet, but the numbers certainly are tempting.
Leasing seems like a good idea at face value ... if you want to always have a car that's under warranty, never has to be MOTd, is modern, safe, comfortable, etc. Just work out your monthly budget and pick what you like best from what's available at that price.
BUT ...
What happens if you lose your job, or some other circumstance crops up, and you need to get out of the lease early?
What happens if it's time to give the car back and the company starts arguing that it's not in quite good enough condition?
If you have money to burn then leasing seems fine, but I'd sooner pay a few grand for something 'interesting', old, mechanically simple and robust than any of the mediocre cars that I could afford to lease on my modest income.
BUT ...
What happens if you lose your job, or some other circumstance crops up, and you need to get out of the lease early?
What happens if it's time to give the car back and the company starts arguing that it's not in quite good enough condition?
If you have money to burn then leasing seems fine, but I'd sooner pay a few grand for something 'interesting', old, mechanically simple and robust than any of the mediocre cars that I could afford to lease on my modest income.
daemon said:
nicanary said:
What happens when you retire and you're on a much lower income? Where does the cash come from to buy the retirement car?
From all the money you saving on not suffering massive depreciation on new cars?nicanary said:
daemon said:
nicanary said:
What happens when you retire and you're on a much lower income? Where does the cash come from to buy the retirement car?
From all the money you saving on not suffering massive depreciation on new cars?
I think leasing could become the norm. I guess the norm is PCP these days, for private buyers at least.
As others have said, lots of people treat it like a lease anyway, but PCP tends to be the worst of all worlds in terms of the deal.
It's not a great leap to imagine people realising that the monthly payments tend to be a little cheaper on a lease versus a PCP.
I guess there is a bit more flexibility in a PCP, perhaps there is a market for a more flexible lease, or maybe that's what a PCP is, in practice.
As others have said, lots of people treat it like a lease anyway, but PCP tends to be the worst of all worlds in terms of the deal.
It's not a great leap to imagine people realising that the monthly payments tend to be a little cheaper on a lease versus a PCP.
I guess there is a bit more flexibility in a PCP, perhaps there is a market for a more flexible lease, or maybe that's what a PCP is, in practice.
groundcontrol said:
Yes, because saving for things and buying them is super uncool.
Agreed.We live in a different world today where you can have anything you want but never actually own it.
These same people that never own anything will find life more stressful and difficult as they get older.
brickwall said:
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.
Some lease deals are already including road tax as part of the lease. I was chatting to a dealer about my OH's next car. He said that a selling point about the deal was that the lease covered yearly road tax. I asked him how much it was for that particular model. He said, "Eh, it's £0 per year due to emissions". I did laugh.Gassing Station | General Gassing | Top of Page | What's New | My Stuff