Buy an SLK or lease and SLC?

[DoctorH]

Hi PH forum - long time stalker, first time poster. Sorry if this is a bit more *financial advice* than *car advice*

What is the forum's opinion on personal leasing (PCH not PCP) - if you've switched from owning to leasing, what did you think? And would you do it again? And would it be worth leasing just for the chance to drive an SLC with all the bells and whistles as opposed to settling on a youngish SLK?

Have been advised by my IFA that leasing is the sensible way to go to finance cars (i.e. why invest your cash into a rapidly depreciating asset when you buy) and I'm a tad nervous about making the plunge. Debating wether to lease a nice shiny SLC for around £280pcm (VAT inc) or take out a loan for around £11kish and buy a 2014ish SLK that would be paid off in 3 years time. My current situation is thus:

- Current car value around £6.5k
- Will be returning to full time education in 3 years time so significant drop in salary anticipated but I have a rental property and *some* locum earning capacity.
- Budget up to £350pcm
- Do I take a risk with leasing throughout my second degree or do I take out a loan for an asset that will rapidly depreciate (let's be honest - it's a merc) and probably be worth sub - £7k after the degree when I can afford to upgrade?

[r129sl]

Are you self-employed? VAT-registered? Leasing is a no brainer if so.

[DoctorH]

Sadly not - currently full time employed by NHS but will have a side-earner in a few months that I suppose will count as self employment.

[Aletank]

Isn't the NHS lease scheme really good ?
Insurance included
Comes out before Tax but can affect your pension i suppose

[clarki]

I think the SLK looks better, so I bought one of those.

Great little car and better value for money IMO, love it.

[Dog Star]

Since 2005 my cars have been....

R170 SLK 230
R230 SL500

• R172 SLK250CDi AMG
• R172 SLK250CDi AMG
• E Class Coupe AMG 220d (destroyed)
• E Class Coupe AMG 200p

All those with a * were leased and, as you can see, I've "done it again".
The SL500 was a LOT of hassle and cost me a bloody fortune. I think any new-ish car has the potential for massive bills if they go wrong and start doing stuff that garages can't fix, so I'm happy to just lob a few hundred quid a month at the lease co and have utterly hassle free motoring.

There'll be some judgemental weapon on PH who says that I'm "driving a car he can't afford", however the fact that I am kind of disproves that.

If the cost of your leasing compares favourably to your cost of (depreciation + servicing + tyres + tax + time and hassle) then go for it.

One thing I am beginning to regret - I do like having a more "grown up" E class coupe, but when I wrote off the first one I could have replaced it with a brilliant blue SLC diseasel with cream leather and all the knobs and whistles and I chose another E class. I'm starting to wistfully want the SLC now.

[andrew]

whether a loan or a lease, you're still paying for the depreciation

at least with a loan you'll have some wheels at the end

hth