Lease versus Used Purchase - Bangernomics Question
Discussion
Apologies I know this will be have probably been done to death but asking specific to my situation.
I recently changed jobs as a consultant, self employed so doing a lot more miles due to site visits.
Mileage PA: Circa 12-15k
I have a new LTD company so business lease might be tricky.
In my head I hung my hat on a Toyota Corolla spending circa £16-17k for a 3-4 year old model. a 3k deposit and a £13k loan paid off in 4 years so circa £300/month. Estimated value after 4 years is say £7 or £8k perhaps.
Now there are better lease deals seemingly coming through... Part of me thinks a lease could be 'easier' but the issue I have is at the end of the lease I hand the car back and nothing to show for it, where ask the Corolla could be a deposit for the next car?
Personal Lease: £2k down, £300/month for 4 years: over £16k spent.
Purchase: £3k down, £300/month for 4 years: a £5k deposit for the next car.
Just typing this has kind of answered my question.
Other than say the novelty of changing cars after only 2 years, is there any other reason why a lease would be a preferable choice?
I recently changed jobs as a consultant, self employed so doing a lot more miles due to site visits.
Mileage PA: Circa 12-15k
I have a new LTD company so business lease might be tricky.
In my head I hung my hat on a Toyota Corolla spending circa £16-17k for a 3-4 year old model. a 3k deposit and a £13k loan paid off in 4 years so circa £300/month. Estimated value after 4 years is say £7 or £8k perhaps.
Now there are better lease deals seemingly coming through... Part of me thinks a lease could be 'easier' but the issue I have is at the end of the lease I hand the car back and nothing to show for it, where ask the Corolla could be a deposit for the next car?
Personal Lease: £2k down, £300/month for 4 years: over £16k spent.
Purchase: £3k down, £300/month for 4 years: a £5k deposit for the next car.
Just typing this has kind of answered my question.
Other than say the novelty of changing cars after only 2 years, is there any other reason why a lease would be a preferable choice?
Personally I prefer the option of owning a car, being that either through paying cash or having a loan (e.g. bank) for it, so if my personal circumstances change over the period of ownership, either positive or negative, I can make that choice as to what to do with the car rather than being tied into a lease for 2, 3 or 4 years.
Just my own view although I have a habit of changing cars frequently...
Just my own view although I have a habit of changing cars frequently...
If your recently self employed you may not pass the lease companies credit check and also if your plans change 6 or 12 months down the line our stuck with the lease but at least if you own the car you have more options rather than paying to get out of the lease.
A used toyota corolla will be very reliable so no worry running one outside the warranty but also if you get it serviced by toyota they now give another years warranty up to 10 years and 100k miles
A used toyota corolla will be very reliable so no worry running one outside the warranty but also if you get it serviced by toyota they now give another years warranty up to 10 years and 100k miles
NuckyThompson said:
Get a personal loan, put £15k into the ltd company. Buy an electric car in ltd company and get tax relief. Company owes you £15k so can repay you tax free over next few years to cover the loan repayments.
Bonus points if you have solar at home and can charge the car for free
good idea but I live in an apartment that doesn't have adequate ev charging set upBonus points if you have solar at home and can charge the car for free
I’m also a consultant, albeit employed by a consulting firm. Here’s the thing:
I have to go where the work is. Two years ago, it was Plymouth. One year ago, West Wycombe. Now, near Preston.
This means that I can’t predict my annual mileage. Some years, it’s low, others can be c. 30,000. Leasing requires a declared mileage, and excess mileage rates can hurt. So I buy lightly used, and run the car until I can no longer extend the warranty. In this line of work, it seems to be the best option.
I have to go where the work is. Two years ago, it was Plymouth. One year ago, West Wycombe. Now, near Preston.
This means that I can’t predict my annual mileage. Some years, it’s low, others can be c. 30,000. Leasing requires a declared mileage, and excess mileage rates can hurt. So I buy lightly used, and run the car until I can no longer extend the warranty. In this line of work, it seems to be the best option.
When I was doing consulting work, I bought cars for cash, because there's always a risk you'll have no work next month, or you'll get 6 months you can commute by pushbike, or work from home, or it's just easier to take the train in London or whatever.
A good mate of mine bought his first brand new car, then got a contract that was too good to turn down, abroad.
I worked for a couple of start-ups and didn't always get paid on time.
So personally, I never wanted any commitment ahead.
A good mate of mine bought his first brand new car, then got a contract that was too good to turn down, abroad.
I worked for a couple of start-ups and didn't always get paid on time.
So personally, I never wanted any commitment ahead.
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