RE: PH Service History: To lease or not to lease
Discussion
Gareth1974 said:
I took delivery of my first lease car, a VW Arteon R-Line DSG on Monday. 3+23 at £269, so £7000 for the two years, amortised it works out at £291.
10 days ago, I sold my previous car, a BMW 320d. I'd purchased the BMW at 6 months old, so it had already lost the worst chunk of depreciation. I paid £21900 for it, which was the cheapest price I could find nationally at the time. I had the first £10k of the purchase price, but paid £500 in interest to finance the remaining £12k. I sold it for £10850, so £11050 depreciation, plus interest = £11550. I owned the car for 30 months, so this give an amortised cost of £385 per month.
So I as far as I can see, by leasing I'm saving pretty much £100 a month, and this is compared to running a second hand, not new car, from a brand which doesn't depreciate as much as some - a colleague has just been offered £11k for a 2 year old Mondeo he paid over £30k for new - he's lost nearly £800 a month in deprecation!
I should also save in other areas - the road fund licence, which I had to pay previously is included in the lease, and when my BMW reached 3 years old, I began to pay for AA cover, included in the lease car. And the lease car came with brand new tyres, brakes etc, which of course were already part worn when I acquired the BMW.
My wife also got a good lease deal a few months back - Golf GTi for £5800 over 2 years.
Amortised or average cost? Sounds like an average to me. 10 days ago, I sold my previous car, a BMW 320d. I'd purchased the BMW at 6 months old, so it had already lost the worst chunk of depreciation. I paid £21900 for it, which was the cheapest price I could find nationally at the time. I had the first £10k of the purchase price, but paid £500 in interest to finance the remaining £12k. I sold it for £10850, so £11050 depreciation, plus interest = £11550. I owned the car for 30 months, so this give an amortised cost of £385 per month.
So I as far as I can see, by leasing I'm saving pretty much £100 a month, and this is compared to running a second hand, not new car, from a brand which doesn't depreciate as much as some - a colleague has just been offered £11k for a 2 year old Mondeo he paid over £30k for new - he's lost nearly £800 a month in deprecation!
I should also save in other areas - the road fund licence, which I had to pay previously is included in the lease, and when my BMW reached 3 years old, I began to pay for AA cover, included in the lease car. And the lease car came with brand new tyres, brakes etc, which of course were already part worn when I acquired the BMW.
My wife also got a good lease deal a few months back - Golf GTi for £5800 over 2 years.
nickfrog said:
saaby93 said:
and how long did it take to get the Aerton - some lease deals seem to be 6 months away when you want a car now
This has little to do with the method of payment. A used car on a forecourt is always going to be more instantly available than a car that doesn't exist yet. They don't call me Captain Obvious for nothing.
k that has to do with lease vs buy is anyone's guess.Good rule for leasing is to be flexible,don't pick a car then try to find the cheapest.
Search for the deals then decide if that car is right for you
I got a brand new facelift s3 for £2700 deposit and £286 month with maintenance,metallic paint and supersport seats.
Like everything it works for some people and doesn't for others. Once this deal ends i fancy an rs3 which I'll probably buy used as the lease deals don't seem to work in my favour. It really is as simple as that
Search for the deals then decide if that car is right for you
I got a brand new facelift s3 for £2700 deposit and £286 month with maintenance,metallic paint and supersport seats.
Like everything it works for some people and doesn't for others. Once this deal ends i fancy an rs3 which I'll probably buy used as the lease deals don't seem to work in my favour. It really is as simple as that
edc said:
On a 3+23 deal it would be circa £3k over 2 years. You have a brand new in warranty car which needs only one cheap first service. No RFL to pay. Get another similar current model car and see if you can run it for £3k over 2 years including depreciation when you sell it.
What sort of car can you lease for that sort of price all in? If it's not a tiny city car then it'd make sense as a second car to cover my commuting.Tim16V said:
If you lease you also need to tuck away a monthly amount to generate a deposit for the next one so that needs to be added to the total cost (assuming you want to continue more or less at the same level).
It depends on the deal and deposit needed. For 3 month deposit deals and a cheap lease, if you haven't got £500 or so knocking about then I wouldn't commit to a lease anyway! Fast Bug said:
There's a point, and yet again PH has missed it with one of their articles...
Certain cars you don't lease, such as an R8 as the desls never stack up. Yet the article never mentioned the £200 a month Golf R's that were around, or the £125 a month A4 deal, or the peanuts C4 Cactus deal. With the reight deals you pay less than you would in depreciation if you'd bought the car new.
And yes, used is less than new.
Most of the time.
Unless you get stuck with a big bill outside of the warranty period.
Exactly.Certain cars you don't lease, such as an R8 as the desls never stack up. Yet the article never mentioned the £200 a month Golf R's that were around, or the £125 a month A4 deal, or the peanuts C4 Cactus deal. With the reight deals you pay less than you would in depreciation if you'd bought the car new.
And yes, used is less than new.
Most of the time.
Unless you get stuck with a big bill outside of the warranty period.
I've got a Golf R Estate on a 2 year lease. Total over 2 years £6145. I only bother getting a lease when the deal is *very* good. In general, lease prices aren't particularly special, but if you wait for the right one it can be good value motoring. I wouldn't have bothered getting an 'R' based on the prices in the article.
Gribs said:
edc said:
On a 3+23 deal it would be circa £3k over 2 years. You have a brand new in warranty car which needs only one cheap first service. No RFL to pay. Get another similar current model car and see if you can run it for £3k over 2 years including depreciation when you sell it.
What sort of car can you lease for that sort of price all in? If it's not a tiny city car then it'd make sense as a second car to cover my commuting.Gribs said:
coljoh148 said:
Ordered Feb 17.
I just grab whatever's available dirt cheap that ticks the boxes, cheap 2nd car ideal.
Is splashing out £6k over 2 years really cheap for a second car? £6k would buy a 5 year old focus and if kept for 5 years you'd be looking at roughly £1k a year depreciation and under £1k a year in maintenance/servicing. I just grab whatever's available dirt cheap that ticks the boxes, cheap 2nd car ideal.
Gribs said:
edc said:
On a 3+23 deal it would be circa £3k over 2 years. You have a brand new in warranty car which needs only one cheap first service. No RFL to pay. Get another similar current model car and see if you can run it for £3k over 2 years including depreciation when you sell it.
What sort of car can you lease for that sort of price all in? If it's not a tiny city car then it'd make sense as a second car to cover my commuting.Tim16V said:
If you lease you also need to tuck away a monthly amount to generate a deposit for the next one so that needs to be added to the total cost (assuming you want to continue more or less at the same level).
In fairness it's probably the same as tucking away money if you own a car for the depreciation if you want to continue at the same level when you come to change car.Nickbrapp said:
Got a story quota to fill?
You’ve been lazy, Golf R are avaliable for much less than the price you have stated, at one point when everyone was going for them they where less than £300 a month, in some cases even less than that.
This is very true.You’ve been lazy, Golf R are avaliable for much less than the price you have stated, at one point when everyone was going for them they where less than £300 a month, in some cases even less than that.
But not from “What Car” leasing.
Which is of course owned by Haymarket...
As posted many times before, >95% of personal lease deals are rubbish and overpriced and a ripoff. In many or most cases, you're better off with something else, like a loan or cash or preowned or perhaps PCP.
But when you are patient and find the right PCH lease, the deals are almost unbeatable. For example, you could at one point get a ~£30k Golf R for ~£180 a month all-in (£4-5k over 2 years). If you bought a Golf R today with pure cash, you'd lose at least £5-8k over 2 years, even after any massive dealer-discounting.
But when you are patient and find the right PCH lease, the deals are almost unbeatable. For example, you could at one point get a ~£30k Golf R for ~£180 a month all-in (£4-5k over 2 years). If you bought a Golf R today with pure cash, you'd lose at least £5-8k over 2 years, even after any massive dealer-discounting.
My Golf R lease cost me £6540 over 2 years/20k miles (£2400 initial + 23 x 180).
At the time list price was £31,395 and Volkswagen themselves gave the car a guaranteed final value of £22k after 2 years. In other words they estimated depreciated (quite accurately) to be £9395 over that time period.
Whether I had bought the car with cash, PCP or HP, leasing was by far the cheapest option and even included road tax for the two years too saving another £380.
At the time list price was £31,395 and Volkswagen themselves gave the car a guaranteed final value of £22k after 2 years. In other words they estimated depreciated (quite accurately) to be £9395 over that time period.
Whether I had bought the car with cash, PCP or HP, leasing was by far the cheapest option and even included road tax for the two years too saving another £380.
Sorry PH, but this article is stupid. You cannot compare the cost of leasing a new car with buying a used one. Personally, I'd never run a brand new car - leased or bought outright; it's always going to cost more than a privately-bought used car, and I don't see any value in having a brand new car vs a used one.
The more valid comparison would be leasing costs plus hand-back charges vs outright purchase and sale after n years. But I suppose that would require a bit more research than adding up some lease numbers and a quick browse of the classifieds.
It's not news that used cars are cheaper than new ones. Leasing has nothing to do with that rather simple equation.
The more valid comparison would be leasing costs plus hand-back charges vs outright purchase and sale after n years. But I suppose that would require a bit more research than adding up some lease numbers and a quick browse of the classifieds.
It's not news that used cars are cheaper than new ones. Leasing has nothing to do with that rather simple equation.
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