Leasing Vs buying an old car?
Discussion
I'm very conflicted as to what I should do with our main car. We current have an 05 Octavia 1.9 DSG and do about 17k-20k miles a year in it. Neither my partner or I want to keep it long term and so I'm starting to think about what is a realistic replacement for it, within the next 6-8 months I'd imagine. Originally I thought I'd just buy another cheap £2k - £3k car and then keep it for a year and move it on again. But my partner says she wants a car that we will keep for a couple of years without having to worry about changing.
This got me thinking about leasing... I had a quick look and saw a few deals on Qashqai's and Kuga's for around £150-£180 a month, so with VAT that's around the £200 mark. Over a 2 year lease, that'd be less than £5k to have a brand new car. We want a car that we can rely on and haven't got the time to worry about it being in the garage to be fixed as often as our current 2 cars seem to be!
Are there any other costs involved in leasing that aren't obvious? Given what I've said about our ideal budget for a used, old car, would leasing make sense?
Any input would be appreciated!
This got me thinking about leasing... I had a quick look and saw a few deals on Qashqai's and Kuga's for around £150-£180 a month, so with VAT that's around the £200 mark. Over a 2 year lease, that'd be less than £5k to have a brand new car. We want a car that we can rely on and haven't got the time to worry about it being in the garage to be fixed as often as our current 2 cars seem to be!
Are there any other costs involved in leasing that aren't obvious? Given what I've said about our ideal budget for a used, old car, would leasing make sense?
Any input would be appreciated!
Deposit is paid up front, then the monthly payments. Add the £1700 to your £5k. Then extra per mile if you go over the annual limit, maybe 10p a mile? That's another £1600 if you do 8k a year over.
It all adds up to around double the the headline (pre-VAT) price.
It might make sense compared to buying a new car with a bank loan though
It all adds up to around double the the headline (pre-VAT) price.
It might make sense compared to buying a new car with a bank loan though
Essentially, we want a reliable car that doesn't cost too much really. (Difficult, I know)
Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
How much savings have you got?
£5k is a lot of depreciation to swallow over 2 years, if you have £10k to put into a car you'll get something a couple of years old, with a warranty, no mileage limit or panic if you get a parking dent, or worries of negative equity if something happens to it. It won't lose £5k over 2 years either..
If you haven't got it, it is an easy way into a new car. Or frees up equity if you have always bought new cars.
For some of the high end, high depreciating cars, lease and can be cheaper than the depreciation.
Personally it's not for me. I'm not poo pooing it, we all have different finances and motivations.
£5k is a lot of depreciation to swallow over 2 years, if you have £10k to put into a car you'll get something a couple of years old, with a warranty, no mileage limit or panic if you get a parking dent, or worries of negative equity if something happens to it. It won't lose £5k over 2 years either..
If you haven't got it, it is an easy way into a new car. Or frees up equity if you have always bought new cars.
For some of the high end, high depreciating cars, lease and can be cheaper than the depreciation.
Personally it's not for me. I'm not poo pooing it, we all have different finances and motivations.
There are plenty of fun, interesting, and reliable used cars you can buy for <£4k.
My advice would be to work out the total cost/depreciation over 2 years. You'll probably find the lease on a basic Qashqai will cost £7000+, while a £4k used car might still be worth as much as £3k after 2 years, so you're basically paying £6k more!
If you're keen to have a brand new car on your driveway and happy to pay for it, leasing can be a good option though, but it will definitely cost you a lot more!
My advice would be to work out the total cost/depreciation over 2 years. You'll probably find the lease on a basic Qashqai will cost £7000+, while a £4k used car might still be worth as much as £3k after 2 years, so you're basically paying £6k more!
If you're keen to have a brand new car on your driveway and happy to pay for it, leasing can be a good option though, but it will definitely cost you a lot more!
gman88667733 said:
Essentially, we want a reliable car that doesn't cost too much really. (Difficult, I know)
Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
What about a £7k car, and anything that you get back after two years is a bonus to put towards the next one? Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
Fiat sedici is an option, they seem fairly decent. (I want to move back to manual as DSG isn't quite the same!) I have a decent chunk of savings for my age (21) but I am not keen on splurging too much really. Given the likely cost of leasing, I'll probably stick to a £4k or less used car and hope for the best. Not bothered about it being new or not, I just want something reliable. If my Octavia was a manual, it'd be a keeper for sure as the engine is my favourite feature of the car.
gman88667733 said:
Essentially, we want a reliable car that doesn't cost too much really. (Difficult, I know)
Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
Getting handy with the spanners will save you a fortune in running. With YouTube, forums etc there has never been more helpful info in the public domain. Both our cars have got bits starting to fail and quite a big amount of money will need to be spent on them within the next 12 months.
I just don't know if buying a £3-£4k car at most would compare as a financial decision Vs leasing a new car
Any used car is a gamble but if you have to pay someone to service it or do basic repairs it really adds to your overall costs.
A stamped service history adds no value on a 3k car.
I am starting to get there with home repairs and small bits. Anything major and I'd be useless though! For example, my Octavia has its DMF on the way out and needs a cambelt and water pump + new discs and pads all around. I doubt id have the tools or knowledge for any of those things and at a garage they add up to probably £1250, which makes me question if when the time comes, I'm better off getting a car that I see as a long term keeper to put money into
Edited by gman88667733 on Saturday 9th March 19:48
stolen from the best lease deals thread
https://offers.dacia.co.uk/cars/sandero/personal-c...That dacia has a £1,954 deposit, black bumpers, no radio, no aircon, keep fit windows and no central locking.
You didn't mention any sort of deposit and I guess by easy you mean in stock? Also the cheapest monthly deals seem to be vanishing day by day
The cheapest deal I can find on leasing.co.uk is for a Honda Jazz S on a 9+23 £121.54 a month deal with 8k miles a year, doesn't say it is in stock though. Total lease cost £3,889.28
Cheapest car in stock is a Kia Picanto 1.0 on a 6+23 deal
Initial Rental:
£803.28
Additional Fees:
£144.99
Total Lease Cost:
£4,027.51
Doesn't exist, perpetuating the myth that you can run a brand new car for the cost of running a shed. All part of the "girl at work is leasing a C1 for less than her monthly mobile phone bill" rubbish.
Joey Deacon said:
AlwynMike said:
CAPP0 said:
I know I could spend the weekend Googling but can someone point me at the better sites to use to look for a £100/month-ish cheap and easy deal please?
You did ask......https://offers.dacia.co.uk/cars/sandero/personal-c...
You didn't mention any sort of deposit and I guess by easy you mean in stock? Also the cheapest monthly deals seem to be vanishing day by day
The cheapest deal I can find on leasing.co.uk is for a Honda Jazz S on a 9+23 £121.54 a month deal with 8k miles a year, doesn't say it is in stock though. Total lease cost £3,889.28
Cheapest car in stock is a Kia Picanto 1.0 on a 6+23 deal
Initial Rental:
£803.28
Additional Fees:
£144.99
Total Lease Cost:
£4,027.51
Auto810graphy said:
CAPP0 said:
I know I could spend the weekend Googling but can someone point me at the better sites to use to look for a £100/month-ish cheap and easy deal please?
Simple search on leasing.com but not much of anything out there for £100 without a decent initial rentalGassing Station | Car Buying | Top of Page | What's New | My Stuff