Used car purchase vs personal leasing

[anonymous-user]

The initial message was deleted from this topic on 23 March 2021 at 09:39

[Codswallop]

Gnerally, leasing a new car is more expensive than owning a used car. If you buy carefully, you will have minimal depreciation and repair costs.

[PurpleMoonlight]

Some things to consider.

1. Is the total lease cost more or less than the depreciation on the used car.

2. Are you sure you can meet the payments of the lease over the term (job security, mortgage interest rate increase)

3. Might you need access to the £10,000 over the life of the lease.

4. Will a new car give you better reliability peace of mind.

Consider all and make your choice of which works best for you.

[xRIEx]

jsd14 said:

I would like to gain opinions on buying a used car vs leasing a new car for ~2-3 years.

USED:
Adv - car is yours at the end
Dis - out of warranty costs, tax, buying/selling, depreciation

Lease:
Adv - your spec, new car when lease finishes, low initial outlay & monthly costs, warranty & tax
Dis - deposit, nothing when lease finishes

The car we are looking to lease is a Nissan Juke ~180 a month on contracthireandleasing
Used car - up to £10000

I would appreciate all replies, we have more than enough saved up to buy the used car but are hoping to purchase a house soon and thus keep money for a deposit.
The car will be a personal purchase.

Thanks

Depreciation - this effectively applies to leasing as well - all you are paying is depreciation. The benefit is knowing (almost) exactly how much depreciation you will pay over 2/3/4 years. Leasing a new car is still paying for a new car; it may well be an excellent deal compared to list price, but whichever way you look at it you are funding a new car.

'Depreciation' - there's another thread somewhere about lease company fees for scratches/dents/wear and tear when handing the vehicle back - this is an unknown amount of 'depreciation'. Bad reports and good reports from different posters, YMMV.

House deposit - there's nothing stopping you getting a loan or some sort of finance on all or part of the cost of a used car (if it's from a dealer that offers it). Also, the lease means there's £180 less for your mortgage payments. Swings and roundabouts a lot of the time.

If financing new (or used, in the case of the likes of Stratstone), I'd probably be more tempted by PCP rather than a lease - more options available to you both during and at the end of the agreement, although deposit requirements are probably higher.

I would be almost certain that the used car will cost you less over three years, however if the lease is more manageable in the short term, go for that.

[xRIEx]

PurpleMoonlight said:

Some things to consider.

3. Might you need access to the £10,000 over the life of the lease.

In that situation the OP could take out a loan.