Leasing x Used - Need your opinion on an specific case.

[I.miss.my.old.cars]

So, quickly, the situation:

I have a 19 plate CVT Jazz, in a company scheme where I pay £295/mo with insurance, taxes, and maintenance included. I can get rid of it at no cost.

My credit score is far from beautiful, so getting a lease in the market is not an option.

I'm sufficiently handy with a spanner, and I had a 320d that wasn't bad at all, despite being 2003.

I was doing some pub calculations, that I whant to share w/ you.

Get a stty £2000 loan paying 48 x £60 (expensive, I know)
Buy a 10-13 year old £2000 car
The insurance of a car would cost me £700 without NCB (quoted today @ go compare), or 1 x 127 + 10 x 60
Taxes would be £15/mo
I think that I can do a pretty decent service with £500.
Let's throw £250 in the calculation for tyres.

So, first 12 months, with tyres & service, I would save ~£1100
Next 12 months, considering a £300 minor service, I would save ~£1450, not considering the drop on insurance because of NCB

So two years, saving £2550 in total, and having a lower monthly cost with occasional spikes due to maintenance. And I think having an used car is not the end of the world. I have good memories of the E46.

Even the loan being the most expensive possible, still seems that is making sense.

What are your thoughts?

[Zetec-S]

Buy something like this for cash:

https://www.autotrader.co.uk/classified/advert/201...

or this

https://www.autotrader.co.uk/classified/advert/201...

No loan, no lease deal, cheap to insure, cheap tires, cheap servicing costs, if something goes badly wrong then scrap it...?

[ilikejam]

I agree with the above post - buy something cheap and bin it if it goes wrong then find something else.

However for info, with a lease the only thing you're financing is the total cost of the lease - not the value of the car. I'm currently half way through a 2 year lease on a Volvo V90 R Design that costs less than your Honda Jazz (including car tax, breakdown cover and maintenance).

[Gez79]

Was there a deposit on the V90?

[R Mutt]

I've somehow ended up in a situation where I'm not quite sure whether a lease may have been cheaper.

Spent £10,000 on 09 reg Jag XF 3.0 V6 D with 40k on the clock.
1 year on I've spent £1,000 on it including MOT and 2 services

Compared to £2500 down and 300 quid a month rental for a new one, that's the same outlay over the duration of the 36m lease but mine will be worth nothing after another 2 years thank to diesel bans

[Zetec-S]

R Mutt said:

I've somehow ended up in a situation where I'm not quite sure whether a lease may have been cheaper.

Spent £10,000 on 09 reg Jag XF 3.0 V6 D with 40k on the clock.
1 year on I've spent £1,000 on it including MOT and 2 services

Compared to £2500 down and 300 quid a month rental for a new one, that's the same outlay over the duration of the 36m lease but mine will be worth nothing after another 2 years thank to diesel bans

£2500 deposit + £300/month for a brand new XF... really?

[R Mutt]

Zetec-S said:

£2500 deposit + £300/month for a brand new XF... really?

May have been an XE but that was the best price I found last year

[ilikejam]

Gez79 said:

Was there a deposit on the V90?

£1980 initial, £220/month

[ZX10R NIN]

I'd say the post with the MK1 Focus's is the way to go especially if you're good with the spanners.

[I.miss.my.old.cars]

Thanks guys, the cheap Focus idea was really decent. Will have a look onto it.

Happy to know that a S90 leasing might cost less than I'm paying for the Jazz, but with my credit score I doubt I could get a lease in the open market, and as I have no NCB and I'm not an UK/UE citizen, insurance can be expensive. And there was no down payment on the Jazz.

[talksthetorque]

I.miss.my.old.cars said:

Thanks guys, the cheap Focus idea was really decent. Will have a look onto it.

Happy to know that a S90 leasing might cost less than I'm paying for the Jazz, but with my credit score I doubt I could get a lease in the open market, and as I have no NCB and I'm not an UK/UE citizen, insurance can be expensive. And there was no down payment on the Jazz.

Remember also to add increased fuel costs over the jazz with anything more thirsty.
Also is it *Actually* costing you £295 a month after taxes etc if it's on a salary sacrifice?

[I.miss.my.old.cars]

295 on my net salary... 331 i think on the gross one. I'm not clever with taxes etc.