Leasing vs Buying - what are the best options for the FIL

[Joe5y]

s3 akr said:

I just came out of a lease in December and it worked well for me. I had a car on 24 months/10k miles pa/6 months deposit with VW Financial Services and it was supplied direct from the VW dealership (just happened to be the best deal in the market at the time).

The road tax is included in the lease in the UK and maintenance is an option as are tyres. The exit penalty for the deal I got was severe; pay up the remainder of the lease! This is likely harsh due to the excessively good deal I got.

Be aware that with leasing you have to:-

• get a great deal at the start - really do your research on th e provider and shop around. Ensure that the provider is a member of the BVRLA and aligns to their code of practice
• consider the impact of excess mileage and ensure the cost per mile they quote includes VAT and is not excessive (I had 7p per mile VAT included and it was cheaper to go 10k miles over than to commit to 5k miles per year extra in the lease terms and monthly payments)
• accept that you get nothing back at the end - it is all "money gone"
• pay for approved repairs not included, or over an above the guidance in the "BVRLA Fair Wear and Tear Policy" that you would just leave if it were a purchased car being sold on (ie scuffs, dings, screen chips etc). You can find the policy online for a read through.
• replace tyres with premium branded replacements - I would ordinarily use mid-range eg: Yokohama
• maintain dealership service history and approved repairs
• be aware that dealership advertised offers of free servicing etc only apply to purchased cars, not leased
• check that servicing aligns to your usage - ie long term servicing vs annual

Lastly, make sure that the commitment is right for you financial status if you choose this option. It is a big commitment but the risks are only relative to your cashflow situation I guess so decide what works for you in the worst case scenario, not the best case rose tinted scenario!

As I said at the start, it worked well for me in that the lease was cheaper than the depreciation on a car that dealerships were not discounting for sale. I am also someone that really looks after cars which helps as you can't hand them back dirty, scruffy and unloved.

For the hand back I had to have 2 wheels refinished (£200), a small scuff repaired (I risked non-approved @ £150 through Chipsaway as it was supposed to be invisible and it worked!), replacement windscreen (£70 excess). I went to 24k miles which was 4k over the lease agreement.

During the lease I had 2 services (£350) and one set of 4 premium tyres (£360).


I hope that helps. Good luck.

Cannot thank you enough for the information provided above. I'm sitting down with him tomorrow to discuss some options and the above.

[Joe5y]

Screechmr2 said:

jjr1 said:

'My FIL has just been made redundant and is in a position to either buy or lease a car. '

Is this an oxymoron?

The chap is 62, good chance he is now on a pension so I can't any issue, more like the redundancy is a bonus for him. My dad took redundancy at 50, paid off the mortgage, started receiving his pension then decided to go self employed to stop himself getting bored. The redundancy was a nice cash bonus.

He isn't pulling a pension just yet but the mortgage is paid off, the MIL has a car paid for outright, he had been with his company for 11 years as a Sales Director (I don't know figures but I know his redundancy package is rather good). His thoughts moving forward is to contract for a few years hence the requirement for a new(ish), reliable, all inclusive car. Although I think buying nearly new would be best.

[ZX10R NIN]

I'd say a good pre registered/low mileage 2016 car would tick all the boxes it's new (should keep the MIL happy) also unless he's still doing big miles then I suggest you look for a petrol version etc.

2016 320i M Sport 10 miles

http://www.autotrader.co.uk/classified/advert/2016...

Mondeo Titanium

http://www.autotrader.co.uk/classified/advert/2017...

A4 Sport

http://www.autotrader.co.uk/audi/a4/saloon/2.0-pet...

[anonymous-user]

Personally I wouldn't go for a pre-reg unless you can find a really good deal on the exact spec you want and are happy to haggle hard.

Take that 3er as an example, I matched it spec-for-spec through a broker and if you were to get one brand new the price is only £900 more than the pre-reg and the finance deal is much, much better. They're doing 3.9% representative on PCP at the moment. You've also got the extra three or four months of warranty that's gone from the pre-reg.

There might be enough haggle room in the price of the pre-reg to make it more attractive of course, but a fair chunk would have to come off that price for me.

[ZX10R NIN]

Of course you have to haggle that bit is standard, don't forget you still get contributions on pre reg's but definitely look around to find the best deals.

[anonymous-user]

Absolutely, I've no issue with haggling (although I look like an amateur compared to my wife.....) but a fair few people do. Whatever works out as the best deal for the individual.

[ZX10R NIN]

Definitely this OP work out if your dad intends to keep what he's buying for a while then see what suits, with regards to servicing you can buy service packs for most AUC cars.