How shall we buy our next car - lease or cash?
Discussion
Check the lease deals - with Leasing.com and Seat Dealers ( Lookers Stockport and Horton Seat Lincoln are often recommended on the lease thread)
Check the best prices on carwow, broadspeed etc
Do you want options? - You pay full price for both but may help residuals if it's your own money.
Are you buying a house? would a bigger deposit or less stuff on the credit check be preferable.
Check the leasing FAQ
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Good luck keeping the wife happy
Check the best prices on carwow, broadspeed etc
Do you want options? - You pay full price for both but may help residuals if it's your own money.
Are you buying a house? would a bigger deposit or less stuff on the credit check be preferable.
Check the leasing FAQ
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Good luck keeping the wife happy
Carlton Banks said:
I have bought cars that are rarer and hold value such as CSL’s or my current Z3M Coupe.
You *may* find she is less than impressed having to drive an old-fashioned, unreliable, expensive-to-run, and out-dated car, though. A shiny new warranted VAG car with CarPlay and a ‘69 plate is often more appealing.Depends
If your looking at the cheap and older used part of the market then PCP then would be a very unusual choice.
Brand new PCP or contract hire or outright cash buy or buy cash and bank loan surely it’s basic maths which is the cheapest choice all considered. You need to also consider that Anything but an actual outright cash buy will have an impact on your credit score and affordability of mortgages and will reduce the amount you can borrow.
If your looking at the cheap and older used part of the market then PCP then would be a very unusual choice.
Brand new PCP or contract hire or outright cash buy or buy cash and bank loan surely it’s basic maths which is the cheapest choice all considered. You need to also consider that Anything but an actual outright cash buy will have an impact on your credit score and affordability of mortgages and will reduce the amount you can borrow.
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
You don't "lose big" anymore than you lose big when paying for a long-haul holiday to somewhere nice rather than a weekend in Clacton.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
I've leased a couple of times, when the flexibility was important to me. Each time I paid slightly more to get a short 24 month lease, because I knew there was a good chance I'd be moving. Under those sorts of circumstances, leasing made a lot of sense. If you think there's a solid chance your wife might get bored with the Seat, then it's a good option to lease.
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Definitely this.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Also never buy new clothes, ALWAYS use charity shops and dont be fussy about sizes. Get the cheapest trousers the charity shop sell, then use string you’ve collected from other people’s skips as make shift braces or a belts.
Also you can get at least 5 cups of tea by reusing the same tea bag.
If you have a job, only use the toilet there. It saves on water from flushing at home and toilet paper.
Actually, I wouldn’t even bother with a car, get yourself a bus pass. Much cheaper. Actually just walk.
Flumpo said:
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Definitely this.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Also never buy new clothes, ALWAYS use charity shops and dont be fussy about sizes. Get the cheapest trousers the charity shop sell, then use string you’ve collected from other people’s skips as make shift braces or a belts.
Also you can get at least 5 cups of tea by reusing the same tea bag.
If you have a job, only use the toilet there. It saves on water from flushing at home and toilet paper.
Actually, I wouldn’t even bother with a car, get yourself a bus pass. Much cheaper. Actually just walk.
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Yes, you're back. Brilliant. I see your thought process is still binary though.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
OP, it depends. Compare both options based on the lowest cash price and the lowest lease deal.
Edited by nickfrog on Friday 27th December 16:11
The rule of thumb with a leasing is to not worry about the make/model too much and concentrate on what is the best deal available at the time for the size/class of car you would like. This ensures the best deal on a lease. Leasing thread here is excellent - the deals posted by other members are how I have ended up with the 2 cars I have now and ultimately I am very happy with the deals I got.
If it is a specific car that you would really like, then as everybody else says you just have to weigh up all of the options and compare the real world costs.
If it is a specific car that you would really like, then as everybody else says you just have to weigh up all of the options and compare the real world costs.
Carlton Banks said:
Hi folks,
Wife wants a new car, specifically a Seat Arona FR sport as below:
Should we buy new and lease or buy outright?
I have never leased and always bought outright but then again I have bought cars that are rarer and hold value such as CSL’s or my current Z3M Coupe.
Thanks
R
If it's your own money I'd say buy a lightly used model on PCP (with a dealer contribution) & you should get a good deal something like this:Wife wants a new car, specifically a Seat Arona FR sport as below:
Should we buy new and lease or buy outright?
I have never leased and always bought outright but then again I have bought cars that are rarer and hold value such as CSL’s or my current Z3M Coupe.
Thanks
R
https://www.autotrader.co.uk/classified/advert/201...
But a lease deal may workout cheaper depending if you want a well spec'd model, just a word of warning I've had various customers that have had/are having issues with the 1.5tsi engine.
You'll always find blokes on here like Mr N Frog who get seduced by new car smell and chocolate sprinkles in the dealership frappuchinos then spend the next four years lecturing others on how buying new makes sense rather than admitting their error.
Best policy is to buy a shed within your cash budget, OR at a push get a 2 year old car with 12,000 on the clock with cash or a low interest bank loan. Anything else is to get conned, gleefully cheered on by the sort of financial incontinent who runs around shouting 'if it depreciates lease it' before ending up potless at 60 and blaming society for having voided their own fiscal Huggies.
Or buy new but admit it's paying a premium, if you like that fine but don't pretend it's fiscal!
Best policy is to buy a shed within your cash budget, OR at a push get a 2 year old car with 12,000 on the clock with cash or a low interest bank loan. Anything else is to get conned, gleefully cheered on by the sort of financial incontinent who runs around shouting 'if it depreciates lease it' before ending up potless at 60 and blaming society for having voided their own fiscal Huggies.
Or buy new but admit it's paying a premium, if you like that fine but don't pretend it's fiscal!
Gordon_Roslin said:
You'll always find blokes on here like Mr N Frog who get seduced by new car smell and chocolate sprinkles in the dealership frappuchinos then spend the next four years lecturing others on how buying new makes sense rather than admitting their error.
What are you talking about? 
I don't visit dealerships and I dislike the new car smell.
I have never lectured anyone, just shared my experience.
Buying new doesn't always make sense. The kids' Yaris was a better deal second hand.
What error have I made? I prefer new unless there is a good reason to buy second hand. If no one made an error by buying new, how would you buy a second hand car? I subsidise your motoring so surely you should be grateful rather than upset?
Gordon_Roslin said:
Best policy is to buy a shed within your cash budget, OR at a push get a 2 year old car with 12,000 on the clock with cash or a low interest bank loan. Anything else is to get conned, gleefully cheered on by the sort of financial incontinent who runs around shouting 'if it depreciates lease it' before ending up potless at 60 and blaming society for having voided their own fiscal Huggies.
Or buy new but admit it's paying a premium, if you like that fine but don't pretend it's fiscal!
I am really happy to pay a premium for new, who is pretending otherwise?Or buy new but admit it's paying a premium, if you like that fine but don't pretend it's fiscal!
As for depreciation, it is exactly the same irrespective of the method, because it is the same car.
Lease can be cheaper than cash or vice versa. Simply make a decision on which is cheaper, it's super easy and prevents getting conned.
As for financial incontinence, I'll be retiring in 4 years at 55 so basically you're talking out of your enbittered ass on every single point Gordon, as ever. I have no issues whatsoever with anyone preferring a shed. I don't, that's all.
Edited by nickfrog on Friday 27th December 22:56
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Unless of course it's a new car which is in demand and which you can then sell on for a profit. Or it's a new car you want to run for many years. Or a new car where reliabity / warranty are important. Or where you like a new model and you can't buy 'very very used'.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Or any of the other possible scenarios when the quoted text simply won't apply...
There is no right answer for everyone. Leasing has a fixed cost which you can budget for, buying a secondhand car can be potentially a lot cheaper but can also be potentially dearer if something big goes wrong. The only factors that matter are what premium do you put on having the new newness of a new car, and do you prefer the surety of a known cost against one that might, but hopefully won't, bite you in the wallet.
Allow me to quote myself from another thread:
roadsmash said:
These threads very quickly get out of hand so OP DING DING DING you’ve won a completely impartial pros/cons list that summarises everything for you. Lucky you. 
These points all relate to BRAND NEW CARS only and I haven’t included any points that are associated with new cars e.g. full manufacturer warranty, as that’s a given. Used cars are a different debate entirely.
Pros of leasing (PCH):
Flexible deposit options and can be as low as nothing... i.e. no money down;
Generally offers the lowest monthly payments;
RFL (car tax) is usually included within the payments;
No residual value to worry about;
A lot of credit agencies only show/see the outstanding contract balance (total payments) on your credit report.
Cons of leasing (PCH):
The car is not yours to sell so you cannot get out of the agreement early very easily, you CANNOT VT like with a PCP. Typically 50% or more (depending on the provider) of the remaining monthly payments are required to be paid in order to terminate the agreement and hand the car back;
Mileage cap which is chargeable per mile if exceeded;
Naturally, as the car is never owned, repetitively leasing for 10+ years on different cars will result in a lot of money being spent with nothing to show for it at the end.
Pros of personal contract purchase (PCP):
Flexible deposit options and can be as low as nothing... i.e. no money down;
Car is usually yours to sell providing the finance is paid off beforehand;
Providing 50% of the total amount repayable (incl interest) has been paid then you can hand the car back no questions asked (mileage cap pro rata still applies);
Optional final payment (balloon) is all that is required to be paid at the end of the agreement to own the car (this can also be refinanced if required);
Excellent deals can be had as it is a very popular method of financing;
A decent lender can vary the deposit and optional final payment to reach a desired monthly payment.
Cons of personal contract purchase (PCP):
Monthly payments tend to be higher than leasing due to the way the car is financed and the added flexibility too;
Mileage cap which is chargeable per mile if exceeded;
Because this is a purchase agreement, an interest rate applies which if unchecked, can be quite high;
Possible to find yourself in negative equity at any point through the agreement.
Pros of hire purchase (HP):
An easy to understand agreement, the full value of the car plus interest is payable and spread typically over 3/4/5 years;
A deposit can be incorporated to reduce the monthly payments;
The car will be owned outright as soon as the last monthly payment is made.
Cons of hire purchase (HP):
Monthly payments are the highest due to the full value of the car typically being financed;
Negative equity is a real risk especially if a large deposit is not incorporated into the purchase;
Can have relatively high interest rates if homework is not done;
Due to the length of the agreement, typically you can still have 2 years worth of payments still to make without a full manufacturer warranty in place.
Pros of a cash purchase:
The car is owned outright and can be modified if desired;
You belong in a very elite club... not many people buy brand new cars with cash.
Cons of a cash purchase:
The average person will be tying up their spare cash in a rapidly depreciating asset. Not a major problem for the super rich, but not a wise investment for someone using a large portion of their savings to buy the car.
These points all relate to BRAND NEW CARS only and I haven’t included any points that are associated with new cars e.g. full manufacturer warranty, as that’s a given. Used cars are a different debate entirely.
Pros of leasing (PCH):
Flexible deposit options and can be as low as nothing... i.e. no money down;
Generally offers the lowest monthly payments;
RFL (car tax) is usually included within the payments;
No residual value to worry about;
A lot of credit agencies only show/see the outstanding contract balance (total payments) on your credit report.
Cons of leasing (PCH):
The car is not yours to sell so you cannot get out of the agreement early very easily, you CANNOT VT like with a PCP. Typically 50% or more (depending on the provider) of the remaining monthly payments are required to be paid in order to terminate the agreement and hand the car back;
Mileage cap which is chargeable per mile if exceeded;
Naturally, as the car is never owned, repetitively leasing for 10+ years on different cars will result in a lot of money being spent with nothing to show for it at the end.
Pros of personal contract purchase (PCP):
Flexible deposit options and can be as low as nothing... i.e. no money down;
Car is usually yours to sell providing the finance is paid off beforehand;
Providing 50% of the total amount repayable (incl interest) has been paid then you can hand the car back no questions asked (mileage cap pro rata still applies);
Optional final payment (balloon) is all that is required to be paid at the end of the agreement to own the car (this can also be refinanced if required);
Excellent deals can be had as it is a very popular method of financing;
A decent lender can vary the deposit and optional final payment to reach a desired monthly payment.
Cons of personal contract purchase (PCP):
Monthly payments tend to be higher than leasing due to the way the car is financed and the added flexibility too;
Mileage cap which is chargeable per mile if exceeded;
Because this is a purchase agreement, an interest rate applies which if unchecked, can be quite high;
Possible to find yourself in negative equity at any point through the agreement.
Pros of hire purchase (HP):
An easy to understand agreement, the full value of the car plus interest is payable and spread typically over 3/4/5 years;
A deposit can be incorporated to reduce the monthly payments;
The car will be owned outright as soon as the last monthly payment is made.
Cons of hire purchase (HP):
Monthly payments are the highest due to the full value of the car typically being financed;
Negative equity is a real risk especially if a large deposit is not incorporated into the purchase;
Can have relatively high interest rates if homework is not done;
Due to the length of the agreement, typically you can still have 2 years worth of payments still to make without a full manufacturer warranty in place.
Pros of a cash purchase:
The car is owned outright and can be modified if desired;
You belong in a very elite club... not many people buy brand new cars with cash.
Cons of a cash purchase:
The average person will be tying up their spare cash in a rapidly depreciating asset. Not a major problem for the super rich, but not a wise investment for someone using a large portion of their savings to buy the car.
Flumpo said:
Audemars said:
It doesn't matter whether it is cash or lease on a new car.
The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Definitely this.The answer is not to buy a new car as you will lose big either way on a new car.
Very very used and with cash is the sensible way.
Also never buy new clothes, ALWAYS use charity shops and dont be fussy about sizes. Get the cheapest trousers the charity shop sell, then use string you’ve collected from other people’s skips as make shift braces or a belts.
Also you can get at least 5 cups of tea by reusing the same tea bag.
If you have a job, only use the toilet there. It saves on water from flushing at home and toilet paper.
Actually, I wouldn’t even bother with a car, get yourself a bus pass. Much cheaper. Actually just walk.
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