Leasing ALWAYS makes sense...
Discussion
Jonno02 said:
The people that get all smug about owning a shed compared to a shiny new car, are the same annoying people that get smug about reading the book rather than watching a film adaptation. Does my head in.
Answer - don't own a shed. Annoyance solved on both sides 
Unless of course it's a deliberate choice to run as a snotter alongside ownership of the above mentioned shiny cars, which makes sense to some PHers.
BoRED S2upid said:
I don't get it at all I drive a 3 series it's probably worth £3500 I could have a new one on a lease or in 12 months time give this one away for free that's how expensive leases are. Ok if you have to have a brand new car but I will stick to older ones and save thousands.
£7k for a two-year lease in a 3 Series sounds right, but:1. How much do you think it will actually be worth in a year? £2,750? So that's £750 towards a lease.
2. How much do you think you will spend on non-scheduled maintenance? Could be anywhere between £0 and £150 a month on average, plus the value of your time. Let's split the difference and ignore the time saving to get £900.
3. How much less would you spend on fuel in a new car? Over 10k, 42 vs 35 mpg is £250.
4. How much does your car cost to tax? £150?
So for your nominal £7k budget over two years, your existing car is likely to cost you £4,100 of it.
It is of course entirely your call, and it's still cheaper for you to own than lease. The saving of £120 a month buys a bloody good holiday every year, but a lease also takes away a significant part of the cost of owning a car.
Jonno02 said:
The people that get all smug about owning a shed compared to a shiny new car, are the same annoying people that get smug about reading the book rather than watching a film adaptation. Does my head in.
The REAL oddity in my book is muppets who think any car old enough to have an MOT is a shed.Dr Jekyll said:
OverSteery said:
hora said:
A 2010 car says 'I'm struggling'.
A brand new Allroad says 'hey I'm doing ok'.
I assumed this was a joke or troll.A brand new Allroad says 'hey I'm doing ok'.
Although it does suggest a total lack of interest in cars I guess.
How old is the average UK car? Pre 2010 I'd guess.
https://www.smmt.co.uk/industry-topics/sustainabil...
This thread is good for a laugh. I love how some PHers cannot understand that other peoples' priorities may be different to their own.
Both of my cars are owned outright
Edited by spreadsheet monkey on Friday 20th January 10:50
CYMR0 said:
BoRED S2upid said:
I don't get it at all I drive a 3 series it's probably worth £3500 I could have a new one on a lease or in 12 months time give this one away for free that's how expensive leases are. Ok if you have to have a brand new car but I will stick to older ones and save thousands.
£7k for a two-year lease in a 3 Series sounds right, but:1. How much do you think it will actually be worth in a year? £2,750? So that's £750 towards a lease.
2. How much do you think you will spend on non-scheduled maintenance? Could be anywhere between £0 and £150 a month on average, plus the value of your time. Let's split the difference and ignore the time saving to get £900.
3. How much less would you spend on fuel in a new car? Over 10k, 42 vs 35 mpg is £250.
4. How much does your car cost to tax? £150?
So for your nominal £7k budget over two years, your existing car is likely to cost you £4,100 of it.
It is of course entirely your call, and it's still cheaper for you to own than lease. The saving of £120 a month buys a bloody good holiday every year, but a lease also takes away a significant part of the cost of owning a car.
Leicesterdave said:
No??
An Audi Allroad can be had for £250ish pounds a month (£300ish if you count initial payment) for 2 years- isn't any other similar car going to cost the same or more to buy?
Cheapest I could find a 24mth lease for 8K miles with 3 months up front was about £369. Where are you looking?An Audi Allroad can be had for £250ish pounds a month (£300ish if you count initial payment) for 2 years- isn't any other similar car going to cost the same or more to buy?
So my old man does around 25,000miles a year and just buys a new banger every 5 years or so, the latest a golf gti for £500. If he were to lease a car for that long it'd cost him an awful lot more for a car that he only uses to commute in. In the 5 years the banger would of easily paid for itself, whereas with a lease £300 a month would dissappear from his salary. I suppose it's the mentality of some people whether its worth the extra money to them, he could easily afford a nice lease on something special but to him the banger is only to commute in and has other toys to have fun in at the weekends
BoRED S2upid said:
Non scheduled maintenance is the only down side if you ask me yes I could face a massive bill (I haven't in 30,000 miles) fuel is negligible I get over 40mpg so the difference between old and new is what 10mpg?
Agreed on the non-scheduled maintenance part. 10mpg is still 20% of your fuel bill, so ~£25 a month at 10k.BoRED S2upid said:
And yes there is some depreciation but not a great deal.
Depends on how long you keep the car - but if you assume an £8k car kept for three years and sold for £3k, that's £139 a month. Assume a £4k car sold for £1,500 and it's still £70 a month over three years.BoRED S2upid said:
If you compare ownership v lease over a longer period say 10 years the difference would be huge.
Agreed, but not many people keep one car for a decade and even three cheap cars over that period will add up to £8k... (OK your lease might be £30k but there are still the other costs to factor in).My point is that people who scream "but it's only £137 a month" when they've put £2500 in are missing the point... cars are expensive. New cars are very expensive, and sometimes (but usually not) cheap cars are the most expensive of all.
There are undoubtedly idiots out there who are vastly overpaying, or missing out on something better for the same cost, but you can't immediately tell whether someone has got themselves a £17k, nine-month-old C Class on a cheap personal loan (so it costs them £10k including interest over five years) or bought pre-reg with a tiny discount at 12.9% APR (so they lose £10k in the first week). Similarly you don't immediately know if someone bought a mint 10-year-old for £1,500 at auction, or paid £5k on sub-prime finance for a car with moon mileage that springs a £200 repair bill every month - so that their motoring is costing them £6k a year...
msport123 said:
If you were buying brand new, would your first choice be an A4 allroad estate? If the answer is yes, then brilliant, you're lucky in that you've found a good lease deal for a car that you actually really want.
This is often the crux of it for me. I'm very impressed that you can lease an A4 Allroad as cheaply as you can, it does seem a very good deal except in one respect: I don't want one. In fact given that I don't want any small car or any diesel, but do want to be able to do a fair few miles, unfortunately leasing doesn't often make sense for me. Gallons Per Mile said:
I don't understand leasing cars when people say how it 'saves them money' or 'only costs x hundred a month'. In my world, I currently run a cheap banger (yes, admittedly it's not shiny and new) that I own outright and has only cost me > £800. For a year and 11k miles of running. Including buying the car and maintaining it to a good standard. That's under £66.67 a month to put it in perspective of a lease. On the flip side, the car is 16 years old, has no gadgets and looks a bit sheddy. But I'll get at least £500 of my £800 spend back if I decided to sell tomorrow, and i don't really care about what it looks like or how many gadgets it has when I'm driving to work or taking stuff to the tip.
Does leasing always make sense? Not to me, it doesn't.
If you like a decent car in good condition leasing can make sense. For me at the moment it wouldn't. I like my cars to work and TBH I don't like driving a wreck but it seems people's definition of that varies. Garage rates make any car expensive and unless it is a banger will always continue to depreciate.Does leasing always make sense? Not to me, it doesn't.
I know my "banger" Mondeo cost me £300 in parts last year on small items (without labour ; I fitted them myself) and another £600 with a clutch and flywheel change at the tail end of 2014. It would have cost more if done by a garage. It still needed a crank seal changing, a huge job as the sump has to come off. That kind of cash if I didn't do work is just stupid in my eyes to spend on a car.
rockin said:
The REAL oddity in my book is muppets who think any car old enough to have an MOT is a shed.
True.I can't believe how many posts, just in this thread though, "my car cost £1100 blah blah blah." Yes, an older, less reliable, less toy-filled car will be that price. It's like that's something to be proud of though. Similarly driving a new car on lease isn't something to be proud of; it's a nice thing, but hardly pride inducing. And in my book, anybody that says they would prefer to drive a shed opposed to a new car is delusional.
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