Parents New Car - Lease?
Discussion
My Dad is 82 this year and after 35 years of caravanning is going to hang up his towing mirrors.
He therefore wants to downsize from his 54 rev. Mondeo Tdci to a smaller petrol car which may be his last car.
I suggested looking at a 3 year lease on something like a Jazz for £155 pcm from Ling.
Just wondering if companies will lease cars to pensioners.
He doesn't want potential big bills, just hassle free motoring.
To me it makes sense.
He therefore wants to downsize from his 54 rev. Mondeo Tdci to a smaller petrol car which may be his last car.
I suggested looking at a 3 year lease on something like a Jazz for £155 pcm from Ling.
Just wondering if companies will lease cars to pensioners.
He doesn't want potential big bills, just hassle free motoring.
To me it makes sense.
It makes sense for the working population as you've got a job and the car just becomes an expense deducted from your salary every month, and once every 2/ 3 years you get a new one. Don't think the same applies to a pensioner though (IMO).
If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
va1o said:
It makes sense for the working population as you've got a job and the car just becomes an expense deducted from your salary every month, and once every 2/ 3 years you get a new one. Don't think the same applies to a pensioner though (IMO).
If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
He's never bought new but keeps his care 6-8 years.If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
I was going to ask about the alternatives financing he could look into.
Could he use the Mondeo as deposit + cash?
He doesn't want to sell privately I'd he can help it. Tried that once years ago and didn't have a good experience. TBH he doesn't want the hassle at 82!
va1o said:
It makes sense for the working population as you've got a job and the car just becomes an expense deducted from your salary every month, and once every 2/ 3 years you get a new one. Don't think the same applies to a pensioner though (IMO).
If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
There's nothing more stable than a pensioner with a good income and if they have that income, having the car deducted from that income while preserving the capital sounds ideal... That said, they may have issues leasing to pensioners just because it might be harder to get money out of him if he no longer has the ability to manage his own affairs.If he hasn't got the cash I'd suggest PCP or HP as they give a lot more flexibility, certainly in terms of ownership at the end. By the fact he currently has a 54 plate I presume he likes to keep his cars for a while?
That said, leasing may not be ideal because:
1. It can work if you're the kind of person who would buy that (or a similar) car anyway, and keep it for the lease contract and do the specified mileage. Get too far away from that usage model (for instance, if you're the kind of person who keeps a car eight years) then it's unlikely to be cost-efficient. A new or nearly-new Jazz over 8 years is likely to depreciate by <£100/month on average (taking out a Ling-sized deposit) - maybe more than £155 in the first few years, but not over the length of time he would normally keep it.
2. Early termination fees on a lease are ridiculous - essentially you pay nearly all you would for the full term, but don't get the use of the car. Even if he does need finance, if he gives up driving in two years he's likely to find himself with equity in a hire purchased car (even with a five year agreement) but owing another £1800 or so on a lease.
GreatGranny said:
He's never bought new but keeps his care 6-8 years.
I was going to ask about the alternatives financing he could look into.
Could he use the Mondeo as deposit + cash?
He doesn't want to sell privately I'd he can help it. Tried that once years ago and didn't have a good experience. TBH he doesn't want the hassle at 82!
Yeah the Mondeo + cash as a deposit against a Jazz on PCP or HP would be better I think. You could probably get the monthly payments down to the same sort of figures as the Lease deal if you play around with the term and annual mileage. I was going to ask about the alternatives financing he could look into.
Could he use the Mondeo as deposit + cash?
He doesn't want to sell privately I'd he can help it. Tried that once years ago and didn't have a good experience. TBH he doesn't want the hassle at 82!
GreatGranny said:
Good points CYMRO, so maybe HP is a viable option over 3-5 years enabling him to return car when 50% of the term is complete with no penalties.
If the deposit is large enough then it should be possible a lot earlier than that - half way through he'll probably be in positive equity.I don't wish to be morbid but he may have health problems in the future(my father in law had to give up driving in his 80s when his eyes deteriorated) so something more flexible may be a better idea. Depending on finances a slightly older Jazz or Yaris should still be just as reliable, or can people of that age still get a bank loan if extra cash is needed. It's not tied to the car so it would be easier to sell the car and pay back the loan if circumstances change.
I would take the issue of age out of the question - he could well be fit and healthy and still be driving into his 90s.
You can't assume he's going to fall off the perch before he gets use out of his next car, and I reckon he'd be pretty well peed off if he knew people were thinking that way.
My advice would be for him to have exactly the car he wants and can afford. Buy it in the way he feels is best.
You can't assume he's going to fall off the perch before he gets use out of his next car, and I reckon he'd be pretty well peed off if he knew people were thinking that way.
My advice would be for him to have exactly the car he wants and can afford. Buy it in the way he feels is best.
He has cash to put towards a newer car, all he's worried about is potential garage bills with a 2nd hand car.
I'm just looking at all the choices he has.
The Mondeo has been great apart from a new DMF about 6 months into ownership but its beginning to show its age now and he doesn't need a large diesel car, he only did 8k miles last year and with him getting rid of the caravan that mileage will reduce.
I'm just looking at all the choices he has.
The Mondeo has been great apart from a new DMF about 6 months into ownership but its beginning to show its age now and he doesn't need a large diesel car, he only did 8k miles last year and with him getting rid of the caravan that mileage will reduce.
GreatGranny said:
....he doesn't need a large diesel car, he only did 8k miles last year and with him getting rid of the caravan that mileage will reduce.
Diesel or petrol is nothing to do with mileage these days as so many modern diesels are a delight to drive and perform as well as their petrol equivalents. Count in lower road tax and massively higher mpg as bonuses.SirTK said:
I would take the issue of age out of the question - he could well be fit and healthy and still be driving into his 90s.
You can't assume he's going to fall off the perch before he gets use out of his next car, and I reckon he'd be pretty well peed off if he knew people were thinking that way.
My advice would be for him to have exactly the car he wants and can afford. Buy it in the way he feels is best.
Yes good point but it wasn't meant to be callas and I have mentioned this to him. He's quite realistic and realises he may have to stop driving at sometime.You can't assume he's going to fall off the perch before he gets use out of his next car, and I reckon he'd be pretty well peed off if he knew people were thinking that way.
My advice would be for him to have exactly the car he wants and can afford. Buy it in the way he feels is best.
Even taking age out of the equation its still a sound method of purchasing a new car and having 3 years of trouble free motoring.
SirTK said:
Diesel or petrol is nothing to do with mileage these days as so many modern diesels are a delight to drive and perform as well as their petrol equivalents. Count in lower road tax and massively higher mpg as bonuses.
IMO his journeys would not suit a small diesel.They are mainly 3-7 miles 3/4 times per week and a longer journey every 6-8 weeks of 100 miles.
The Mondeo was the first diesel car he owned so an average 35-40 mpg doesn't bother him.
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