Should I buy a SH car for £6K or get a lease...? Newbie !
Discussion
Hi.
I am new to this leasing topic...but not new to PH !
I have always bought my cars for cash in the past, because that's the traditional way of having a car I suppose. However, I do about 14,000 miles a year commuting and I suppose about 5,000 personal use.
I have owned an Alfa 156 JTDM 150 for the past 6 years, and spent a lot on it recently ( uneconomic I know but I really liked that car !).
However, after 100,000 miles in my ownership, including a couple of track days, rust finally got to the chassis rails so it has been sold for breaking...
I have borrowed a 2003 Polo 1.9 SDi from a pal, which is a stop gap car until I decide what to do next.
I am looking at Volvo V50 diesels just now, with a personal budget of about £6K or so after releasing some funds from a small pension fund.
I am wondering about leasing a car, but not sure about how the whole thing works in 'layman's terms'....but I am attracted to the concept of knowing exactly how much I will be spending on a car every month, and thus avoiding unexpected bills which have caused problems in recent months as my monthly salary is nowhere near the majority of fellow PH'ers !!
I realise that I would never 'own' the lease car, but if anyone can let me know in simple terms how the whole lease thing works I would be grateful !
Thanks in advance.
I am new to this leasing topic...but not new to PH !
I have always bought my cars for cash in the past, because that's the traditional way of having a car I suppose. However, I do about 14,000 miles a year commuting and I suppose about 5,000 personal use.
I have owned an Alfa 156 JTDM 150 for the past 6 years, and spent a lot on it recently ( uneconomic I know but I really liked that car !).
However, after 100,000 miles in my ownership, including a couple of track days, rust finally got to the chassis rails so it has been sold for breaking...
I have borrowed a 2003 Polo 1.9 SDi from a pal, which is a stop gap car until I decide what to do next.
I am looking at Volvo V50 diesels just now, with a personal budget of about £6K or so after releasing some funds from a small pension fund.
I am wondering about leasing a car, but not sure about how the whole thing works in 'layman's terms'....but I am attracted to the concept of knowing exactly how much I will be spending on a car every month, and thus avoiding unexpected bills which have caused problems in recent months as my monthly salary is nowhere near the majority of fellow PH'ers !!
I realise that I would never 'own' the lease car, but if anyone can let me know in simple terms how the whole lease thing works I would be grateful !
Thanks in advance.
Key points for leasing - deposit and possibly fee, length of contract, monthly and mileage. So a 3+23 £299 monthly on 8k would equate to £897 deposit, then £299 a month for 23 months with maximum mileage of 8000 per year (16k over 2 years).
You can add maintenance to monthly cost at most places and at the end of the term, you'll hand the car back hopefully within the leasing guidelines and under the allocated mileage. If over the mileage you'll pay the excess charge in your agreement.
Leasing is a good way to change cars regularly as long as you can afford the financials. If you're thinking more long term, then buy something.
You can add maintenance to monthly cost at most places and at the end of the term, you'll hand the car back hopefully within the leasing guidelines and under the allocated mileage. If over the mileage you'll pay the excess charge in your agreement.
Leasing is a good way to change cars regularly as long as you can afford the financials. If you're thinking more long term, then buy something.
Key things to understand.
A lease car is never going to be the cheapest possible way of motoring.
A lease car can however be the cheapest possible way of motoring in a brand new car.
You know the minimum amount that you are going to lose over a fixed period. So say you lease a car for 2 years, from day one you know you are going to lose the value of the deposit and the 23 monthly payments. For that cost you are going to be allowed to use a brand new car for 2 years and all the benefits that comes with like more reliability on paper, being the first "owner" so when you get the car it won't have been farted in or sneezed on much if at all, manufacturer warranty and if like me you get a maintenance package, fixed price motoring. One other benefit is that when you are done, you don't have to take another car, or sell the car, you just give it back and you are back where you started, albeit with less money in the bank.
The negatives that spring to mind are, it's not "your" car. This is something a lot of people struggle to get over (my wife included that owns her car). The only real life difference is that you don't have a V5 in your drawer. Also if you get a parking/speeding fine then you will have to pay a small admin charge as the fine will go to the lease company before they send it on to you. If you want to modify the car then it is not really ideal as it isn't your car to be modifying. If it gets damaged then you need to make a call to repair it or keep it as it is and take the charge when you give it back, although that's no different to private ownership really because you either repair it or take the hit come resale time. If you need to drive on the continent you should check that this is an option, I don't so I haven't. One other thing that can be an issue is being able to estimate your mileage accurately. If you underestimate then you will be paying excess mileage charges or getting your mileage amended on your contract. If you over-estimate then you will be paying for mileage you aren't doing, although some companies will let you amend your contract to a lower mileage and reduce your payments.
My lease has annual mileage of 25000. If I was to buy a decent used car (say £10-15k worth) and put 50000 miles on it 2 years I think the value of it after 2 years would take a significant hit in the region of £4-£8k depending on the car I chose. Taking that into account, because my lease was £240 a month on a 9+23 maintained, I could quite happily stomach those figures. With the maintenance pack I get the extra benefit of not having to budget for tyres, servicing, brakes or the dealer saying "oh it also needs this" when it is being serviced because it is all covered in the monthly cost.
If you are wondering what car I have that is another thing to bear in mind. Do not go into leasing thinking "I want this particular car". That is not a good way to get a deal, what you really want instead is a criteria. Such as monthly payment you are comfortable with, fuel type (diesels are getting increasingly less competitive unfortunately), miles per annum and vehicle size. Then once a deal comes up that meets your criteria go and test drive one at a local dealer as though you are thinking about buying. If you like the car, as they say on the lease thread pull the trigger.
HTH, this is it basically. At the end of the day if you can afford the monthly payments comfortably and are happy to commit yourself to the same car for 2,3 or 4 years then go for it. Actually I wouldn't take a 4 year lease as most manufacturers only offer warranty for 3 years so on that 4th year you are paying for an out of warranty car but other than that everything above makes sense I think. I would say the type of person that likes to buy a car new or nearly new and then keep it for years and run it into the ground is the worst possible candidate for leasing.
A lease car is never going to be the cheapest possible way of motoring.
A lease car can however be the cheapest possible way of motoring in a brand new car.
You know the minimum amount that you are going to lose over a fixed period. So say you lease a car for 2 years, from day one you know you are going to lose the value of the deposit and the 23 monthly payments. For that cost you are going to be allowed to use a brand new car for 2 years and all the benefits that comes with like more reliability on paper, being the first "owner" so when you get the car it won't have been farted in or sneezed on much if at all, manufacturer warranty and if like me you get a maintenance package, fixed price motoring. One other benefit is that when you are done, you don't have to take another car, or sell the car, you just give it back and you are back where you started, albeit with less money in the bank.
The negatives that spring to mind are, it's not "your" car. This is something a lot of people struggle to get over (my wife included that owns her car). The only real life difference is that you don't have a V5 in your drawer. Also if you get a parking/speeding fine then you will have to pay a small admin charge as the fine will go to the lease company before they send it on to you. If you want to modify the car then it is not really ideal as it isn't your car to be modifying. If it gets damaged then you need to make a call to repair it or keep it as it is and take the charge when you give it back, although that's no different to private ownership really because you either repair it or take the hit come resale time. If you need to drive on the continent you should check that this is an option, I don't so I haven't. One other thing that can be an issue is being able to estimate your mileage accurately. If you underestimate then you will be paying excess mileage charges or getting your mileage amended on your contract. If you over-estimate then you will be paying for mileage you aren't doing, although some companies will let you amend your contract to a lower mileage and reduce your payments.
My lease has annual mileage of 25000. If I was to buy a decent used car (say £10-15k worth) and put 50000 miles on it 2 years I think the value of it after 2 years would take a significant hit in the region of £4-£8k depending on the car I chose. Taking that into account, because my lease was £240 a month on a 9+23 maintained, I could quite happily stomach those figures. With the maintenance pack I get the extra benefit of not having to budget for tyres, servicing, brakes or the dealer saying "oh it also needs this" when it is being serviced because it is all covered in the monthly cost.
If you are wondering what car I have that is another thing to bear in mind. Do not go into leasing thinking "I want this particular car". That is not a good way to get a deal, what you really want instead is a criteria. Such as monthly payment you are comfortable with, fuel type (diesels are getting increasingly less competitive unfortunately), miles per annum and vehicle size. Then once a deal comes up that meets your criteria go and test drive one at a local dealer as though you are thinking about buying. If you like the car, as they say on the lease thread pull the trigger.
HTH, this is it basically. At the end of the day if you can afford the monthly payments comfortably and are happy to commit yourself to the same car for 2,3 or 4 years then go for it. Actually I wouldn't take a 4 year lease as most manufacturers only offer warranty for 3 years so on that 4th year you are paying for an out of warranty car but other than that everything above makes sense I think. I would say the type of person that likes to buy a car new or nearly new and then keep it for years and run it into the ground is the worst possible candidate for leasing.
Al U said:
Key things to understand.
A lease car is never going to be the cheapest possible way of motoring.
A lease car can however be the cheapest possible way of motoring in a brand new car.
You know the minimum amount that you are going to lose over a fixed period. So say you lease a car for 2 years, from day one you know you are going to lose the value of the deposit and the 23 monthly payments. For that cost you are going to be allowed to use a brand new car for 2 years and all the benefits that comes with like more reliability on paper, being the first "owner" so when you get the car it won't have been farted in or sneezed on much if at all, manufacturer warranty and if like me you get a maintenance package, fixed price motoring. One other benefit is that when you are done, you don't have to take another car, or sell the car, you just give it back and you are back where you started, albeit with less money in the bank.
The negatives that spring to mind are, it's not "your" car. This is something a lot of people struggle to get over (my wife included that owns her car). The only real life difference is that you don't have a V5 in your drawer. Also if you get a parking/speeding fine then you will have to pay a small admin charge as the fine will go to the lease company before they send it on to you.If you want to modify the car then it is not really ideal as it isn't your car to be modifying. If it gets damaged then you need to make a call to repair it or keep it as it is and take the charge when you give it back, although that's no different to private ownership really because you either repair it or take the hit come resale time. If you need to drive on the continent you should check that this is an option, I don't so I haven't. One other thing that can be an issue is being able to estimate your mileage accurately. If you underestimate then you will be paying excess mileage charges or getting your mileage amended on your contract. If you over-estimate then you will be paying for mileage you aren't doing, although some companies will let you amend your contract to a lower mileage and reduce your payments.
My lease has annual mileage of 25000. If I was to buy a decent used car (say £10-15k worth) and put 50000 miles on it 2 years I think the value of it after 2 years would take a significant hit in the region of £4-£8k depending on the car I chose. Taking that into account, because my lease was £240 a month on a 9+23 maintained, I could quite happily stomach those figures. With the maintenance pack I get the extra benefit of not having to budget for tyres, servicing, brakes or the dealer saying "oh it also needs this" when it is being serviced because it is all covered in the monthly cost.
If you are wondering what car I have that is another thing to bear in mind. Do not go into leasing thinking "I want this particular car". That is not a good way to get a deal, what you really want instead is a criteria. Such as monthly payment you are comfortable with, fuel type (diesels are getting increasingly less competitive unfortunately), miles per annum and vehicle size. Then once a deal comes up that meets your criteria go and test drive one at a local dealer as though you are thinking about buying. If you like the car, as they say on the lease thread pull the trigger.
HTH, this is it basically. At the end of the day if you can afford the monthly payments comfortably and are happy to commit yourself to the same car for 2,3 or 4 years then go for it. Actually I wouldn't take a 4 year lease as most manufacturers only offer warranty for 3 years so on that 4th year you are paying for an out of warranty car but other than that everything above makes sense I think. I would say the type of person that likes to buy a car new or nearly new and then keep it for years and run it into the ground is the worst possible candidate for leasing.
It's only a minor point, and I'm not saying you're wrong if this is your experience but I've had lease cars where I do have the V5, I am the registered keeper and therefore fines etc do come straight to me without an admin charge.A lease car is never going to be the cheapest possible way of motoring.
A lease car can however be the cheapest possible way of motoring in a brand new car.
You know the minimum amount that you are going to lose over a fixed period. So say you lease a car for 2 years, from day one you know you are going to lose the value of the deposit and the 23 monthly payments. For that cost you are going to be allowed to use a brand new car for 2 years and all the benefits that comes with like more reliability on paper, being the first "owner" so when you get the car it won't have been farted in or sneezed on much if at all, manufacturer warranty and if like me you get a maintenance package, fixed price motoring. One other benefit is that when you are done, you don't have to take another car, or sell the car, you just give it back and you are back where you started, albeit with less money in the bank.
The negatives that spring to mind are, it's not "your" car. This is something a lot of people struggle to get over (my wife included that owns her car). The only real life difference is that you don't have a V5 in your drawer. Also if you get a parking/speeding fine then you will have to pay a small admin charge as the fine will go to the lease company before they send it on to you.If you want to modify the car then it is not really ideal as it isn't your car to be modifying. If it gets damaged then you need to make a call to repair it or keep it as it is and take the charge when you give it back, although that's no different to private ownership really because you either repair it or take the hit come resale time. If you need to drive on the continent you should check that this is an option, I don't so I haven't. One other thing that can be an issue is being able to estimate your mileage accurately. If you underestimate then you will be paying excess mileage charges or getting your mileage amended on your contract. If you over-estimate then you will be paying for mileage you aren't doing, although some companies will let you amend your contract to a lower mileage and reduce your payments.
My lease has annual mileage of 25000. If I was to buy a decent used car (say £10-15k worth) and put 50000 miles on it 2 years I think the value of it after 2 years would take a significant hit in the region of £4-£8k depending on the car I chose. Taking that into account, because my lease was £240 a month on a 9+23 maintained, I could quite happily stomach those figures. With the maintenance pack I get the extra benefit of not having to budget for tyres, servicing, brakes or the dealer saying "oh it also needs this" when it is being serviced because it is all covered in the monthly cost.
If you are wondering what car I have that is another thing to bear in mind. Do not go into leasing thinking "I want this particular car". That is not a good way to get a deal, what you really want instead is a criteria. Such as monthly payment you are comfortable with, fuel type (diesels are getting increasingly less competitive unfortunately), miles per annum and vehicle size. Then once a deal comes up that meets your criteria go and test drive one at a local dealer as though you are thinking about buying. If you like the car, as they say on the lease thread pull the trigger.
HTH, this is it basically. At the end of the day if you can afford the monthly payments comfortably and are happy to commit yourself to the same car for 2,3 or 4 years then go for it. Actually I wouldn't take a 4 year lease as most manufacturers only offer warranty for 3 years so on that 4th year you are paying for an out of warranty car but other than that everything above makes sense I think. I would say the type of person that likes to buy a car new or nearly new and then keep it for years and run it into the ground is the worst possible candidate for leasing.
Hackney said:
It's only a minor point, and I'm not saying you're wrong if this is your experience but I've had lease cars where I do have the V5, I am the registered keeper and therefore fines etc do come straight to me without an admin charge.
Fair enough, were you responsible for taxing the car on those leases as well? I have only had one lease car (my current one) that I do not have the V5 for and can confirm from experience that an admin charge is payable on receipt of a speeding ticket (I got off with speed awareness in the end).I mentioned it because it is one of the key differences (usually it seems now rather than always) that with a lease car you don't have the V5, whereas with a used car you would and traditionally it is a piece of paper that people associate with ownership regardless of the spiel across the top of it.
Personally I'd buy but that's not to say a lease can't work for you something like a Mondeo Titanium Edition will be around £2500-2700 down inc fees & vat with monthlies of £360-385 per month with no maintenance plan.
I'd probably up the budget slightly & buy but only you will know which really suits you best, here's some of my picks.
Optima 3 my brother is now on his second which he uses as a daily & in over 120k he hasn't spent a penny on them other than regular servicing the 1.7 isn't as fuel efficient:
https://www.autotrader.co.uk/classified/advert/201...
But my first choice would be the Mondeo in Titanium X:
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
The VFM option is the Insignia in Elite trim is a good buy (make sure you have the engine oil flushed every other service) & will see you right for a good few years.
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
Accord ES GT
https://www.autotrader.co.uk/classified/advert/201...
EX
https://www.autotrader.co.uk/classified/advert/201...
The 508 in Allure trim
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
I'd probably up the budget slightly & buy but only you will know which really suits you best, here's some of my picks.
Optima 3 my brother is now on his second which he uses as a daily & in over 120k he hasn't spent a penny on them other than regular servicing the 1.7 isn't as fuel efficient:
https://www.autotrader.co.uk/classified/advert/201...
But my first choice would be the Mondeo in Titanium X:
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
The VFM option is the Insignia in Elite trim is a good buy (make sure you have the engine oil flushed every other service) & will see you right for a good few years.
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
Accord ES GT
https://www.autotrader.co.uk/classified/advert/201...
EX
https://www.autotrader.co.uk/classified/advert/201...
The 508 in Allure trim
https://www.autotrader.co.uk/classified/advert/201...
https://www.autotrader.co.uk/classified/advert/201...
Thank you all for those very informative replies, the time taken to write them is much appreciated.
Although I have always had 'decent' cars....( VW Passat, BMW E36s, Alfa 156s (2!), they have had a fair mileage on them when I acquired them, and therefore I have had the upkeep/servicing costs etc as everyone has who does not lease.
I would realistically have to go for a much 'cheaper' type of car if I were to lease, just to minimise the costs. So I would be looking at the lower end of the scale if you like, and something that was good on fuel, be it diesel or petrol.
I would therefore have to get used to not having the BHP that I have been accustomed to (!) having recently disposed of my 180BHP remapped Alfa !
I shall do a lot of thinking before I proceed....as has been said, a lease car is never 'owned' in the traditional sense, and I have a habit of wanting to improve what ever car I get, so obviously that would not be happening !
Again thanks for the contributions above.
Although I have always had 'decent' cars....( VW Passat, BMW E36s, Alfa 156s (2!), they have had a fair mileage on them when I acquired them, and therefore I have had the upkeep/servicing costs etc as everyone has who does not lease.
I would realistically have to go for a much 'cheaper' type of car if I were to lease, just to minimise the costs. So I would be looking at the lower end of the scale if you like, and something that was good on fuel, be it diesel or petrol.
I would therefore have to get used to not having the BHP that I have been accustomed to (!) having recently disposed of my 180BHP remapped Alfa !
I shall do a lot of thinking before I proceed....as has been said, a lease car is never 'owned' in the traditional sense, and I have a habit of wanting to improve what ever car I get, so obviously that would not be happening !
Again thanks for the contributions above.
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