New Cars - is Leasing going to become the new norm?
Discussion
J4CKO said:
I like the idea of leasing but my issues with it are that, correct me if I am wrong,
You cant mess about with your purchase.
It has to be new really
It seems to be geared strongly towards German, and/or diesel Stuff
It is never quite as cheap as it seems
I dont do enough miles.
But, if I need a daily for doing proper mileage, then I would consider it.
Yes. And to clarify, you dont own it at all, so its not your purchase.You cant mess about with your purchase.
It has to be new really
It seems to be geared strongly towards German, and/or diesel Stuff
It is never quite as cheap as it seems
I dont do enough miles.
But, if I need a daily for doing proper mileage, then I would consider it.
Also, i would add, it will be expensive to get out of if your circumstances change.
nicanary said:
Justin Case said:
Comparing like for like there is probably very little in it and it just comes down to your individual preference. Unfortunately most people here aren't comparing like for like, mainly to prove their point.
But the OP asks "is it going to be the norm?". After much debate, the answer is probably "no" because it doesn't suit everybody.
One thing i would say is that the original question i posed was one from an objective viewpoint, but everyone seems to be debating it from their own subjective view
Objectively - i think new car sales will probably move to predominantly lease deals both by the manufacturer and by third parties. Cash buyers are in a small minority anyway even as is, and i dont see that changing.
Subjectively - if i was buying a new car, i'd still be wary about the constraints around leasing in terms of if your circumstances change, etc, so i'd probably still look for a PCP deal with a manufacturer incentive OR a straightforward deposit and finance route.
Objectively - i think new car sales will probably move to predominantly lease deals both by the manufacturer and by third parties. Cash buyers are in a small minority anyway even as is, and i dont see that changing.
Subjectively - if i was buying a new car, i'd still be wary about the constraints around leasing in terms of if your circumstances change, etc, so i'd probably still look for a PCP deal with a manufacturer incentive OR a straightforward deposit and finance route.
Dr Jekyll said:
daemon said:
Subjectively - if i was buying a new car, i'd still be wary about the constraints around leasing in terms of if your circumstances change, etc, so i'd probably still look for a PCP deal with a manufacturer incentive OR a straightforward deposit and finance route.
Why not cash?ORD said:
That's really what strikes me about it. Obtaining a new car every 2 or 3 years is a hugely expensive extravagance. Only very rich people would do it by outright purchase, but lots of people who would think that wildly expensive will spend the same or more on leasing.
Theres maybe something in that. Dishing out, say, £50K on a car, some people cant get their head around that, even though after 3 years they might get £25K of that back. £400 a month doesnt seem so bad.If i was putting £50K of cash into a car though, i'd be looking something in which you'd have a fair chance of getting a decent part of it back.
Sump said:
In other countries they don't let the poor folks have dreams and ambitions. They don't let them get where they shouldn't be either. Over here it's completely the opposite with access to credit etc etc.
Still don't understand why.
So you're saying only poor people finance or lease?Still don't understand why.
Mandat said:
otolith said:
Because for some people a car is a signifier of social status, and driving one that you don't own outright is seen as "cheating".
Do people really think this way?It does bemuse me that we're on a motoring enthusiast forum and there still this "attitude" towards leasing and PCP deals.
Surely if people can afford the payments and want the car then thats a good thing. Do we really need the "i'm considerably richer than ewe" comments from the (alleged) cash buyers?
chrispmartha said:
Scoredraw said:
wemorgan said:
I can't see it changing much from the present status. If too many new cars are leased then the main dealers will have too many second hand cars to move on in 2-4 years.
......and if it does, the bottom falls out of the 2nd hand market - great for buyers like me (keep up the good work you lucky leasers)still good for 2nd hand buyers, although I'm not sure Id personally want to buy an ex lease car, I'm sure many of them aren't treated with the care and respect of owned cars.
Edited by chrispmartha on Thursday 9th July 13:47
M5Fan said:
I don't think that's the only reason though - I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term (see the example leasing figures on the other thread for an M5)
If you bought brand new with cash, then sold after three years you'd have nothing to show for it either?In fact, even if you dont sell it, you've still lost that amount of value in your asset.
Buying with cash doesnt stop the car from depreciating.
M5Fan said:
I understand the whole convenience aspect, hassle-free motoring blah blah but I'm sure you could buy any 3 year old Honda, Toyota, Mazda etc and have pretty reliable motoring at a fraction of the cost (I also understand that's not very PH though!)
True, though if you want a new m5, why would you settle for a three year old Honduh Accord?Mandat said:
M5Fan said:
I'm more surprised by how much people are willing to pay without anything to show for it at the end of the term
At the very least there would have been the benefit of having the use of a new car over the time period, which in itself has an intrinsic value. The point is that some people are happy to pay the cost to receive that benefit, whilst others are not. St John Smythe said:
I guess those cars are bought for fun/enjoyment. A lease car wouldn't be generally I guess, especially a supermini.
Exactly, so why put a huge whack of cash into something for mundane duties?If you can lease a mondeo for £200 a month and its fulfilling all your daily family duties, then you can put your cash into something more interesting?
Granfondo said:
swerni said:
Granfondo said:
daemon said:
St John Smythe said:
I guess those cars are bought for fun/enjoyment. A lease car wouldn't be generally I guess, especially a supermini.
Exactly, so why put a huge whack of cash into something for mundane duties?If you can lease a mondeo for £200 a month and its fulfilling all your daily family duties, then you can put your cash into something more interesting?
I remember my folks buying a VHS video recorder for £529 probably 30 years ago, which was an absolute FORTUNE then. Lots of people just rented them because relative to the price, and the way technology was moving, it made sense - new TV or video recorder every three years. Theirs ended up in the attic at 10 years old, after having started to become an embarrasing relic by the time it was five years old.
When you can buy a dvd player for £20 now, the incentive to rent has gone.
Maybe mobile phones are similar - people happily pay £50 a month for the latest smart phone and most wouldnt dream of parting £700 cash for the phone, knowing theres a new model out in a years time and when they can get a new one on contract renewal anyway.
gizlaroc said:
Granfondo said:
You see a lot more Audi A4s ,BMW 3/5 and Merc C than you do Mondeos though!
Because although a Mondeo may cost you £25k and the German car £35k, because the residuals are better on the BMW or Merc actually costs the same to lease. Which is going full circle. I could buy a Mondeo cash and over the 2-3 years I kept it it would cost me £300 a month, or I could lease a BMW or Merc and over the 2-3 years I kept it it would cost me £300 a month.
That is the reason many of us lease.
My mondeo reference was just a throw away comment, but what your saying totally applies.
Granfondo said:
It's a real sign of the times when you can get almost £8k discount of an E class Merc and only £4k of a Ford!
Merc have been offering big discounts for quote some time, though usually through "manufacturer contributions" into finance deals. I'd say that broadspeed deal is dependant on taking out the finance, even if you cancel it immediately after.Granfondo said:
Back in the day when people owned their cars you would maybe get a set of mats thrown in the deal for your Merc if you we're very lucky!
Its all about market share though isnt it? All the big prestige brands want big market share so their doing "whatever it takes" to sell, sell, sell.Granfondo said:
You can now see who the target customer is for Merc by the chintzy crap they have been throwing together for quite a few years now.
Tailgate open and balloons with foot high £299 per month written on the doors so the lease addicts can see where their next fix is coming from!
Yes, they're aiming for a much younger market now. I remember reading somewhere that up until 2013, the average age of a merc buyer was something like 53. The new A class is aimed at a much younger buyer who seems to want "bling". Because that has worked on the A class, they're blinging up some of their bigger stuff too, so you're now seeing white E220CDIs with black roofs and black "AMG" wheels.Tailgate open and balloons with foot high £299 per month written on the doors so the lease addicts can see where their next fix is coming from!
Snozzwangler said:
Granfondo said:
Snozzwangler said:
Where's the debt?
36/48 X £150 seems like "debt" but of course lease jockeys are Debt blind! 
Have you struggled to pay in the past, hence your disproportionate hate of the subject?
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