Which Lease Term?
Discussion
I'm coming to the end of a 24 month lease of a VW Golf and I feel as though it has gone by so quickly that I was planning on leasing for a longer period e.g. 36 or 48 months.
Are there any downsides to this that i should be aware of? Will i be worse off if i choose a longer term?
Much appreciated.
Are there any downsides to this that i should be aware of? Will i be worse off if i choose a longer term?
Much appreciated.
Please engage brain
1. Service costs will go up, you’ll hit expensive major / 3 year service costs
2. Tyres, you’ll hit new tyres refresh points
3. Warranty, most end at 36 months
4. Cost, are you saving on monthlies?if not, half way through a 4 year, your paying the same for a two year old car as someone is paying for a new 24 month lease
I suggest 2 x 24 months. Maybe a 36 month if pushed
1. Service costs will go up, you’ll hit expensive major / 3 year service costs
2. Tyres, you’ll hit new tyres refresh points
3. Warranty, most end at 36 months
4. Cost, are you saving on monthlies?if not, half way through a 4 year, your paying the same for a two year old car as someone is paying for a new 24 month lease
I suggest 2 x 24 months. Maybe a 36 month if pushed
You make it sound like an easy decision, but take this example which is using initial rental of 3 months:
The 24 month deal works out £600 more expensive over the same period. Factor in the extra initial rental i'd have to pay if i was to go for 2 x 24 month periods, and i'd be paying around £1500 extra (600 + 900) in total. That's a lot of extra cash, even if it does avoid additional servicing.
The 24 month deal works out £600 more expensive over the same period. Factor in the extra initial rental i'd have to pay if i was to go for 2 x 24 month periods, and i'd be paying around £1500 extra (600 + 900) in total. That's a lot of extra cash, even if it does avoid additional servicing.
darrenhenderson84 said:
You make it sound like an easy decision, but take this example which is using initial rental of 3 months:
The 24 month deal works out £600 more expensive over the same period. Factor in the extra initial rental i'd have to pay if i was to go for 2 x 24 month periods, and i'd be paying around £1500 extra (600 + 900) in total. That's a lot of extra cash, even if it does avoid additional servicing.
Ok, so let’s break it down. The 24 month deal works out £600 more expensive over the same period. Factor in the extra initial rental i'd have to pay if i was to go for 2 x 24 month periods, and i'd be paying around £1500 extra (600 + 900) in total. That's a lot of extra cash, even if it does avoid additional servicing.
£1500 premium for 48 over 2 x24
The 48 month will need, which the 24 won’t:
4 tyres - £600
Major service - 250
3 year service (DSG and Haldex) - 100
((Also potentially front pads)) £200
Thats 950
So, for a premium of £550 (350 if you need front pads), you not only get two new cars in 4 years, rather than driving 1 which gets tired towards end of contract, you also protect yourself by always being under warranty and more predictable monthly costs.
£550 over 48 months is £11 a month.
Have you considered what will happen if you take the four year deal but for some reason want to get out of it partway through?
The really good lease deals tend to be two years so personally I would be looking out for one of these with the view that I could always extend for a year if getting on really well with the car, though in fairness the payments can go up or down when extending for that long.
The really good lease deals tend to be two years so personally I would be looking out for one of these with the view that I could always extend for a year if getting on really well with the car, though in fairness the payments can go up or down when extending for that long.
VAGLover said:
Please engage brain
1. Service costs will go up, you’ll hit expensive major / 3 year service costs
2. Tyres, you’ll hit new tyres refresh points
3. Warranty, most end at 36 months
4. Cost, are you saving on monthlies?if not, half way through a 4 year, your paying the same for a two year old car as someone is paying for a new 24 month lease
I suggest 2 x 24 months. Maybe a 36 month if pushed
On the first, I’d say it depends on mileage. I’ve got a BMW that’ll want it’s first service at 22k miles, which for me is 19 months. On a 2 year lease I’d have to pay for it just before the car goes back. But in 3 years I wouldn’t hit the second service, so on a service cost/mile 3 years is probably optimum.1. Service costs will go up, you’ll hit expensive major / 3 year service costs
2. Tyres, you’ll hit new tyres refresh points
3. Warranty, most end at 36 months
4. Cost, are you saving on monthlies?if not, half way through a 4 year, your paying the same for a two year old car as someone is paying for a new 24 month lease
I suggest 2 x 24 months. Maybe a 36 month if pushed
Tyres depend too much on use, but again I’ll need new tyres before two years, but probably not again in 3.
And on the fourth, yes, but the person with the new lease will be paying another 3 months upfront, minimum.
So for a BMW M235i, which is what I’ve got, doing 15k miles a year, I reckon 3 years probably makes most sense. Otherwise you’d being sending back a freshly serviced, newly tired car to BMW... Fortunately, it’s cheaper to buy an M235i than lease, so not a problem for me
You have to take it on a deal-by-deal basis. Calculations are often marginal.
In the Tiguan example, the "extra" costs on a 4-year deal are going to be tyres, brakepads, major service, MoT and a backup fund for unexpecteds. That could cost anywhere between £500 and £2000, depending on what brands are used and what (if anything) goes wrong out of warranty. So, you might be in "profit" on 48 months, or you might not.
The main downside to a 4-year deal is that you're stuck with the same car for a long time. Most cars now start to feel dated and slow after a couple of years. Chopping it in for better tech and a faster engine every 24 months is very attractive for many people.
In the Tiguan example, the "extra" costs on a 4-year deal are going to be tyres, brakepads, major service, MoT and a backup fund for unexpecteds. That could cost anywhere between £500 and £2000, depending on what brands are used and what (if anything) goes wrong out of warranty. So, you might be in "profit" on 48 months, or you might not.
The main downside to a 4-year deal is that you're stuck with the same car for a long time. Most cars now start to feel dated and slow after a couple of years. Chopping it in for better tech and a faster engine every 24 months is very attractive for many people.
Yipper said:
You have to take it on a deal-by-deal basis. Calculations are often marginal.
In the Tiguan example, the "extra" costs on a 4-year deal are going to be tyres, brakepads, major service, MoT and a backup fund for unexpecteds. That could cost anywhere between £500 and £2000, depending on what brands are used and what (if anything) goes wrong out of warranty. So, you might be in "profit" on 48 months, or you might not.
The main downside to a 4-year deal is that you're stuck with the same car for a long time. Most cars now start to feel dated and slow after a couple of years. Chopping it in for better tech and a faster engine every 24 months is very attractive for many people.
For once he’s not talking crap In the Tiguan example, the "extra" costs on a 4-year deal are going to be tyres, brakepads, major service, MoT and a backup fund for unexpecteds. That could cost anywhere between £500 and £2000, depending on what brands are used and what (if anything) goes wrong out of warranty. So, you might be in "profit" on 48 months, or you might not.
The main downside to a 4-year deal is that you're stuck with the same car for a long time. Most cars now start to feel dated and slow after a couple of years. Chopping it in for better tech and a faster engine every 24 months is very attractive for many people.
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