Keep sheddy barge or new lease?
Discussion
Morning all,
Would appreciate a bit of advice from those who may have been through the same 'dilemma' (first world probs and all that...), or indeed anyone who has an opinion
Current daily is a 2008 XC90 D5, do about 15k p.a. Purchased car for £5000, now worth about £2500 (196k miles), over 2 years has cost about £2400 in maintenance/tyres, £7500 in fuel, £1100 in RFL, so over 24 months total cost of ownership is approx £13500. See no reason that would change substantially in next 2 years.
Now I've firmly been in the 'lease/PCP/finance is a waste of money' camp, but doing those sums has raised my eyebrows a bit. Circumstances have changed a bit in the last couple of years and I really don't need a big 7 seater, a decent sized estate would do and I'd like to go petrol (feel free to challenge this).
Been searching around and on a 24 month lease with 15k miles, a couple of options stand out as being attractive, Octavia Estate VRS and V90 T4. Working on around £9000 total lease cost, approx £5000 in fuel, £1000 maintenance/tyres and £250(?) GAP insurance takes me to just over £15000 over 24 months, so about £60 a month over my actual costs over last couple of years.
Options discounted - PCP (not bothered about owning car at end), another more economical S/H car (no guarantee that something won't go expensively wrong, still depreciates), Company car (I have a ltd company but BIK etc. doesn't work financially). In short, if lease doesn't work for me, I'll just risk running the XC90 for the next couple of years.
In summary, a couple of questions...
1. Can anyone see any issues with my maths?
2. Has anyone been in a similar situation and how did it work out for you if you made the jump to lease? Have you stayed in the cycle of leasing after first car or gone back to shedding/something else?
Many thanks in advance!
Pad
Would appreciate a bit of advice from those who may have been through the same 'dilemma' (first world probs and all that...), or indeed anyone who has an opinion
Current daily is a 2008 XC90 D5, do about 15k p.a. Purchased car for £5000, now worth about £2500 (196k miles), over 2 years has cost about £2400 in maintenance/tyres, £7500 in fuel, £1100 in RFL, so over 24 months total cost of ownership is approx £13500. See no reason that would change substantially in next 2 years.
Now I've firmly been in the 'lease/PCP/finance is a waste of money' camp, but doing those sums has raised my eyebrows a bit. Circumstances have changed a bit in the last couple of years and I really don't need a big 7 seater, a decent sized estate would do and I'd like to go petrol (feel free to challenge this).
Been searching around and on a 24 month lease with 15k miles, a couple of options stand out as being attractive, Octavia Estate VRS and V90 T4. Working on around £9000 total lease cost, approx £5000 in fuel, £1000 maintenance/tyres and £250(?) GAP insurance takes me to just over £15000 over 24 months, so about £60 a month over my actual costs over last couple of years.
Options discounted - PCP (not bothered about owning car at end), another more economical S/H car (no guarantee that something won't go expensively wrong, still depreciates), Company car (I have a ltd company but BIK etc. doesn't work financially). In short, if lease doesn't work for me, I'll just risk running the XC90 for the next couple of years.
In summary, a couple of questions...
1. Can anyone see any issues with my maths?
2. Has anyone been in a similar situation and how did it work out for you if you made the jump to lease? Have you stayed in the cycle of leasing after first car or gone back to shedding/something else?
Many thanks in advance!
Pad
I'd say go for a good SH car.
3.6 Skoda Superb nice N/A engine with very little bork (check the chain)
https://www.autotrader.co.uk/classified/advert/201...
VRS
https://www.autotrader.co.uk/classified/advert/201...
2.8T Insignia Elite
https://www.autotrader.co.uk/classified/advert/201...
2.5 N/A Mazda Sport
https://www.autotrader.co.uk/classified/advert/201...
2.5 Legacy
https://www.autotrader.co.uk/classified/advert/201...
All the above are reliable & will last you more than a couple of years, which will workout cheaper than than a lease but if you want a brand new car then leasing can work.
3.6 Skoda Superb nice N/A engine with very little bork (check the chain)
https://www.autotrader.co.uk/classified/advert/201...
VRS
https://www.autotrader.co.uk/classified/advert/201...
2.8T Insignia Elite
https://www.autotrader.co.uk/classified/advert/201...
2.5 N/A Mazda Sport
https://www.autotrader.co.uk/classified/advert/201...
2.5 Legacy
https://www.autotrader.co.uk/classified/advert/201...
All the above are reliable & will last you more than a couple of years, which will workout cheaper than than a lease but if you want a brand new car then leasing can work.
I was in the same mindset as you OP, but after doing the maths I ended up in a similar position and leased (funnily enough) an Octavia VRS petrol. Sadly deals like mine aren't around anymore, but they can still be had for a great price.
I looked at all sorts of options, and kept arriving back at leasing being the best. My criteria was simple - daily driver big hatchback/estate that wasn't completely boring and wouldn't cost me a fortune. I'd bought my other car for cash so didn't want another big capital outlay this time.
One of the things with leasing vs PCP'ing say a 2/3 year old manufacturer approved car is that the consumables are also new. I always seem to get caught out for something expensive on my secondhand cars, like discs and pads or tyres, however with the lease all of these things are brand new. If you're careful with it, over 24 months even at that mileage you shouldn't need anything more than perhaps front tyres. You could also end up on the hook for a warranty renewal with the secondhand car too.
As a slight side note, I adore my skoda. It does 45mpg happily on longer journeys, about 35 on my 6 mile town/dual carriageway commute in traffic. The boot is enormous, infotainment is really good and it's got a great spec as standard (essential when leasing as options add a fortune to the monthlies). The wheels are also the same size front and rear so I've now swapped mine over to prolong the tyres and get away without having to change them before handing back. It's definitely quick enough and I genuinely enjoy driving it, even coming from a sports/junior supercar background. The only fault I can find with it is at higher motorway speeds (above NSL) it becomes slightly less refined and there's a bit more road and wind noise than I'd like. Other than that - fully recommended! I think the MD service was only £159 too!
I looked at all sorts of options, and kept arriving back at leasing being the best. My criteria was simple - daily driver big hatchback/estate that wasn't completely boring and wouldn't cost me a fortune. I'd bought my other car for cash so didn't want another big capital outlay this time.
One of the things with leasing vs PCP'ing say a 2/3 year old manufacturer approved car is that the consumables are also new. I always seem to get caught out for something expensive on my secondhand cars, like discs and pads or tyres, however with the lease all of these things are brand new. If you're careful with it, over 24 months even at that mileage you shouldn't need anything more than perhaps front tyres. You could also end up on the hook for a warranty renewal with the secondhand car too.
As a slight side note, I adore my skoda. It does 45mpg happily on longer journeys, about 35 on my 6 mile town/dual carriageway commute in traffic. The boot is enormous, infotainment is really good and it's got a great spec as standard (essential when leasing as options add a fortune to the monthlies). The wheels are also the same size front and rear so I've now swapped mine over to prolong the tyres and get away without having to change them before handing back. It's definitely quick enough and I genuinely enjoy driving it, even coming from a sports/junior supercar background. The only fault I can find with it is at higher motorway speeds (above NSL) it becomes slightly less refined and there's a bit more road and wind noise than I'd like. Other than that - fully recommended! I think the MD service was only £159 too!
ZX10R NIN said:
I'd say go for a good SH car.
All the above are reliable & will last you more than a couple of years, which will workout cheaper than than a lease but if you want a brand new car then leasing can work.
Hi ZX10... thanks for taking the time to search these out. I had discounted SH but thought I'd run the numbers anyway. Probably out of those, only the VRS for me, all of the others probably as thirsty as the XC90 and some in higher tax bracket as per XC90. I did the sums on on a VRS at 7k, assuming 3k depreciation, 5k fuel 1.5k maintenance, £470 RFL, works out about £10000 over 2 years (I'll get bored and want something else), so about £140/month less than current and £200/month less than new. BUT, have to fork out £4500 of cash on top of £2500 for XC90 to make it happen. I do have it, but would probably rather spend it on something else All the above are reliable & will last you more than a couple of years, which will workout cheaper than than a lease but if you want a brand new car then leasing can work.
... that said, it merits consideration given the savings...Shrimpvende said:
I was in the same mindset as you OP, but after doing the maths I ended up in a similar position and leased (funnily enough) an Octavia VRS petrol. Sadly deals like mine aren't around anymore, but they can still be had for a great price.
I looked at all sorts of options, and kept arriving back at leasing being the best. My criteria was simple - daily driver big hatchback/estate that wasn't completely boring and wouldn't cost me a fortune. I'd bought my other car for cash so didn't want another big capital outlay this time.
One of the things with leasing vs PCP'ing say a 2/3 year old manufacturer approved car is that the consumables are also new. I always seem to get caught out for something expensive on my secondhand cars, like discs and pads or tyres, however with the lease all of these things are brand new. If you're careful with it, over 24 months even at that mileage you shouldn't need anything more than perhaps front tyres. You could also end up on the hook for a warranty renewal with the secondhand car too.
As a slight side note, I adore my skoda. It does 45mpg happily on longer journeys, about 35 on my 6 mile town/dual carriageway commute in traffic. The boot is enormous, infotainment is really good and it's got a great spec as standard (essential when leasing as options add a fortune to the monthlies). The wheels are also the same size front and rear so I've now swapped mine over to prolong the tyres and get away without having to change them before handing back. It's definitely quick enough and I genuinely enjoy driving it, even coming from a sports/junior supercar background. The only fault I can find with it is at higher motorway speeds (above NSL) it becomes slightly less refined and there's a bit more road and wind noise than I'd like. Other than that - fully recommended! I think the MD service was only £159 too!
Thanks, that is encouraging experience. I hear you on the running costs of SH cars - my Volvo has needed 2 new wheel bearings, full set discs and pads, 5 new tyres, repair of swirl flap actuators plus fluid services... hence the £2300. Now I've usually just sucked this up but compared to max 2 standard services and a couple of tyres on a lease car it's big difference... I looked at all sorts of options, and kept arriving back at leasing being the best. My criteria was simple - daily driver big hatchback/estate that wasn't completely boring and wouldn't cost me a fortune. I'd bought my other car for cash so didn't want another big capital outlay this time.
One of the things with leasing vs PCP'ing say a 2/3 year old manufacturer approved car is that the consumables are also new. I always seem to get caught out for something expensive on my secondhand cars, like discs and pads or tyres, however with the lease all of these things are brand new. If you're careful with it, over 24 months even at that mileage you shouldn't need anything more than perhaps front tyres. You could also end up on the hook for a warranty renewal with the secondhand car too.
As a slight side note, I adore my skoda. It does 45mpg happily on longer journeys, about 35 on my 6 mile town/dual carriageway commute in traffic. The boot is enormous, infotainment is really good and it's got a great spec as standard (essential when leasing as options add a fortune to the monthlies). The wheels are also the same size front and rear so I've now swapped mine over to prolong the tyres and get away without having to change them before handing back. It's definitely quick enough and I genuinely enjoy driving it, even coming from a sports/junior supercar background. The only fault I can find with it is at higher motorway speeds (above NSL) it becomes slightly less refined and there's a bit more road and wind noise than I'd like. Other than that - fully recommended! I think the MD service was only £159 too!
Glad to hear the Octavia is working for you, I've always thought they looked good cars. We have other cars to keep us entertained at weekends, but having something as a daily that at least has a bit of enjoyment is attractive...
Cheers!
Are your lease costs quoted? Not done it for a few years but maintenance and GAP seem high.
Regardless of the financial logic, when I did lease, a large part of the decision was simply that I wanted a new car with all the tech, toys, decent power and MPG that new cars offer. No brainer for me.
Regardless of the financial logic, when I did lease, a large part of the decision was simply that I wanted a new car with all the tech, toys, decent power and MPG that new cars offer. No brainer for me.
Rick101 said:
Are your lease costs quoted? Not done it for a few years but maintenance and GAP seem high.
Regardless of the financial logic, when I did lease, a large part of the decision was simply that I wanted a new car with all the tech, toys, decent power and MPG that new cars offer. No brainer for me.
Lease costs just from browsing, but I've adjusted maintenance and GAP down which makes things look better.... Regardless of the financial logic, when I did lease, a large part of the decision was simply that I wanted a new car with all the tech, toys, decent power and MPG that new cars offer. No brainer for me.
You are right though, I'd like some gizmos... but I do have to convince the Ministry of the Interior of the financial benefits
brightonpad said:
Hi ZX10... thanks for taking the time to search these out. I had discounted SH but thought I'd run the numbers anyway. Probably out of those, only the VRS for me, all of the others probably as thirsty as the XC90 and some in higher tax bracket as per XC90. I did the sums on on a VRS at 7k, assuming 3k depreciation, 5k fuel 1.5k maintenance, £470 RFL, works out about £10000 over 2 years (I'll get bored and want something else), so about £140/month less than current and £200/month less than new. BUT, have to fork out £4500 of cash on top of £2500 for XC90 to make it happen. I do have it, but would probably rather spend it on something else ... that said, it merits consideration given the savings...
You've left out one part which is that you'll have a 4k asset at the end of the two years which means it'll have cost you 6k to run it rather than 15k for the two year lease. ... that said, it merits consideration given the savings...Something newish but unlikely to give any trouble? How about this:
https://www.autotrader.co.uk/classified/advert/201...
£145 tax and probably about 40 mpg in the real world. Low mileage should mean a while before consumables are consumed.,and a Mazda backed warranty for added security. In fact snap it up quickly before I do to replace my older model
https://www.autotrader.co.uk/classified/advert/201...
£145 tax and probably about 40 mpg in the real world. Low mileage should mean a while before consumables are consumed.,and a Mazda backed warranty for added security. In fact snap it up quickly before I do to replace my older model
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