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

[Joe5y]

Hi all,

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

He like BMW's, Audi and the similar. He's quite keen on a lease deal but having never considered this I'm totally confused.

What is the deposit for?
Where can he / I search for good deals?
Is the leading the best thing if you want "everything" included?!
Can you get deals with insurance, tax, servicing and tires included? (Just like it would have been with a company car?

TIa

[Joe5y]

steve-5snwi said:

If he has no job then surely the last thing he wants is the debt of a car or lease.

He is in a fairly good situation but I agree. Problem is he has never actually owned a car. From leaving Uni to now (62) he has had company cars*. With this he has never had to compete with the idea of servicing, unreliable cars etc and all that goes with having a company car. (Normally a Lex Auto Lease 320d or similar).

• this will cause issues with insurance I guess also?!

I'm going to stick the options with Brocken down costs under his nose and show him what the costs will be. Just, having never considered leasing o don't know where to start or what some of the costs mean / are and what's included.

[Joe5y]

benjijames28 said:

Do you really need a new car?

No. And possibly the way forward would be to buy 1 year old etc. Problem is, the MIL who is very set in her ways buys a new car every 4 years without fail and sells the out going car to Mrs Joe5y at just less than trade in price = a fairly good deal that gets the Mrs a 1 owner, 4 year old, low mileage, low cost car. Currently a VW Up!. Pile of merde.

[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.