Anyone into cars but not credit?
Discussion
FredClogs said:
funkyrobot said:
NickCQ said:
funkyrobot said:
I have two.
Outright or leased?One bought outright.
I use to buy at 3 years old but found performance to be a bit in and out. Since leasing from new I find I always get there without issues.
funkyrobot said:
FredClogs said:
funkyrobot said:
NickCQ said:
funkyrobot said:
I have two.
Outright or leased?One bought outright.
Too much?
FredClogs said:
People always borrowed money to buy new cars, or second hand ones that's hardly anything new, but in generations past people got bank loans or loans from employers etc...
Indeed. My father has been driving for over 50 years and has always borrowed money to buy his cars apart from his last one. He used to go to his bank or building society. 
daemon said:
No probs.
Genuinely - do people sneer at you because youve an 07 audi or is it your impression that maybe they do behind your back?
I've never come across that and I've owned some seriously crap cars over the years.
I think it was because I was cleaning it, which for me involves washing, drying, polishing (sometimes) and waxing. I can see he obviously thought my 07 a3 SE was my pride and joy and is obviously all I can afford compared to his 2016 S5 sportback.Genuinely - do people sneer at you because youve an 07 audi or is it your impression that maybe they do behind your back?
I've never come across that and I've owned some seriously crap cars over the years.
SWoll said:
As an example lets take a popular lease car at the moment, the M240i. This example assumes new cars so comparing apples with apples.
£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
Where can you lease a car for £0 upfront deposit?£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
I'm still in my A3 1.8T Sport 2002 had it for 13 years paid £12,500 back in the day, still goes strong, good nick all round, only 67k miles as I use tube everyday, was always into cars but just couldn't justify the spend for it to be sitting on drive most of the time and I had no off street parking for years. When I first moved into my current house neighbours thought I was workman or gardener as I didn't have the street required Range Rover Sport lol
Edited by PostHeads123 on Monday 24th October 19:42
twoblacklines said:
SWoll said:
As an example lets take a popular lease car at the moment, the M240i. This example assumes new cars so comparing apples with apples.
£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
Where can you lease a car for £0 upfront deposit?£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
SWoll said:
The £419 includes the cost of the first payment spread over the 2 year term for ease of comparison. Basically a 6 + 23 lease of £360 a month.
Why have you only allowed for a £3k discount when the prevailing discount on the M240i is almost £7k currently?Once you play that corrected discount into your figures the lease is considerably more money.
Fox- said:
SWoll said:
The £419 includes the cost of the first payment spread over the 2 year term for ease of comparison. Basically a 6 + 23 lease of £360 a month.
Why have you only allowed for a £3k discount when the prevailing discount on the M240i is almost £7k currently?Once you play that corrected discount into your figures the lease is considerably more money.
Plenty of other examples available of the 2 costs being very similar and in some cases coming out on the side of the lease option as a lot of manufacturers are heavily subsidizing lease costs at present. VW in particular have done some seemingly ridiculous deals on the Golf GTi, Golf R and Tiguan over the last 12 months in order to shift stock.
Again, this is of course not always the case and only suits certain circumstances.
SWoll said:
Discount I quoted was based on the first 5 sites I looked at on google, as above, which came back at £32k.
Ok, but if you were actally buying one you'd do a bit more homework and find the discounts of up to £7k. £1500 of that is finance deposit contribution from BMW UK, so you either need to take it and pay it off or get a £5500 discount instead, still almost double the discount your figures were based on.SWoll said:
I would also add that I'm sure there are plenty of buyers who walk into their nearest BMW dealership and don't see anywhere close to a £7K discount
That some people overpay for cars isn't an arguement for or against any particular method of running a car.SWoll said:
Plenty of other examples available of the 2 costs being very similar and in some cases coming out on the side of the lease option as a lot of manufacturers are heavily subsidizing lease costs at present. VW in particular have done some seemingly ridiculous deals on the Golf GTi, Golf R and Tiguan over the last 12 months in order to shift stock.
And this is the rub - leasing works, really well, if you get one of the bonkers deals. There are many in the PH lease thread. But these are, as a proportion of cars available to buy, very very much in the minority. For most people, who decide they want Car XYZ, leasing will be probably the most expensive (yet most convenient) way of running that particular car. Especially once you start deviating from the standard specification.Which makes sense really - when you buy a car and then trade it in the cost is the depreciation over the time you own it. With a lease, somebody else buys it and 'trades it in' plus ensures you are paying for their profit margin and the cost of capital. Only when the deal is in some way subdisised over and above a purchase by the manufacturer does leasing become the better option.
So if you wanted an M135i last year, a Golf R earlier this year, you'd have been bonkers to buy instead of lease. If you want an M240i now, especially if you want to add a bit of spec, buying it is probably cheapest.
Edited by Fox- on Monday 24th October 20:15
I will add, leasing a car would work out brilliantly for me where cashflow is king. I can make more off the £6k I need to lease a car in year 2 whilst paying for year one than I lose in depreciation for year 1 and 2, way more.
But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
twoblacklines said:
I will add, leasing a car would work out brilliantly for me where cashflow is king. I can make more off the £6k I need to lease a car in year 2 whilst paying for year one than I lose in depreciation for year 1 and 2, way more.
But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
If the total 2 year lease cost is £10K, why would you need £30K in the bank to cover it? But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
There are of course risks involved, but then that's just life and everyone's circumstances are different. If everyone thought that same way as you I imagine the economy would grind to a halt.
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