Need to change car, lease new it buy old?

[Ilikebeaver]

I currently drive a Mini Cooper S.
Have loved them in the past but it's just not up to the job anymore and is becoming an uncomfortable place to be.

It's an 06 so worth around £5k.

I have a dog and will be driving him with me to work and back every day soon.
20 miles per day.
So I want something comfy, with some poke (nothing slower than the mini).

So have started looking into BMW 1 series or Golfs.

This made me think about the lease deals as I prefer the new shapes of both these cars and the cost to have one on lease is so little compared to if I bought a used one on a loan.

Financially the options seem to be:

Swap mini for a 2006 130m sport and put £2k in to top it up
Or get a 2005 120i for no cost difference
Or get a loan and get a newer 2008 130
Or find the best lease deal for a 135 or Golf R

I change cars quite often anyway, and am getting quite tired of always having an older car that is never perfect, but is still costing me money per month.
I never get to the end of paying them off as I swap and change after a year (usually sue to niggles)

I'm thinking a new lease car will feel great and hopefully after 2 years I will still be happy with it and it would be newer still than any car I had previously whilst costing about the same, and without all the issues that go with owning a 6-8 year old car

I've never leased before and it feels like it might be a bit frivolous

[okie592]

Yay another lease thread to have arguments about buying vs leasing and not having anything after 2 years.

[Fox-]

Ilikebeaver said:

it would be newer still than any car I had previously whilst costing about the same

Yup, brand new cars 'cost about the same' as old cars. Thats why so many people drive old cars - they don't like new ones.

[Ilikebeaver]

If I buy a 5 year old car for the modest sum of £15000 and have a loan over 3 years it will cost me £440 per month, not taking into consideration the likely hood of bigger bills.

If I lease it will cost less per month than that.

I have never kept a car for longer than 18 months and if I have a car loan over 3 years if I chop it in for something else 18 months into it, I'm not going to be getting any money out of it. More than likely having to clear the shortfall...

I have never leased before and always had loans, and it just seems like I'm renting old cars when I could be renting something far newer by not going down the lease route.

[3000GT ANT]

Fox- said:

Yup, brand new cars 'cost about the same' as old cars. Thats why so many people drive old cars - they don't like new ones.

[Fox-]

Ilikebeaver said:

If I buy a 5 year old car for the modest sum of £15000 and have a loan over 3 years it will cost me £440 per month, not taking into consideration the likely hood of bigger bills.

You would also own a car with a value at the end. And many would argue that for a 5 year old car, £15,000 is not a 'modest' sum.

Ilikebeaver said:

If I lease it will cost less per month than that.

Because you are just borrowing it - it goes back at the end, leaving you with nothing. You can't ignore the residual value of whatever you buy in your numbers.

There is nothing wrong with leasing cars if that's what you want but it will cost you more money - but you'll get a brand new car in return. It's not some sort of magic secret where you can drive a brand new car for less money than owning a second hand one.