Buy 2nd Hand or Lease Brand New...
Discussion
Hi guys,
I'm split down the middle, not sure what is the best option for the mrs to do...
Option A
Buy a 8-9k 12-18 month old car e.g Suzuki Swift Sport
Pro's
- You actually own it and can use it as a deposit for the next purchase.
Con's
- Not a lot of warranty left so if anything goes wrong you've got to dig deep, pay for MOT's and servicing, may drop in value like a lead baloon.
Option B
Get a Brand New car on Lease e.g Audi A1
Pro's
- Full warranty for the entire duration of ownership, free servicing, no MOT's.
Con's
- In 2 years time you're left with nothing.
What would you do?
Weighing up the options in my head, leasing the new car over 2 years would probably equate to the amount you'd lose in 2 years buying a car out right.
I'm split down the middle, not sure what is the best option for the mrs to do...
Option A
Buy a 8-9k 12-18 month old car e.g Suzuki Swift Sport
Pro's
- You actually own it and can use it as a deposit for the next purchase.
Con's
- Not a lot of warranty left so if anything goes wrong you've got to dig deep, pay for MOT's and servicing, may drop in value like a lead baloon.
Option B
Get a Brand New car on Lease e.g Audi A1
Pro's
- Full warranty for the entire duration of ownership, free servicing, no MOT's.
Con's
- In 2 years time you're left with nothing.
What would you do?
Weighing up the options in my head, leasing the new car over 2 years would probably equate to the amount you'd lose in 2 years buying a car out right.
I have leased a number cars via business contract hire over the years. It helps being self employed and being able to claim half the VAT back.
I am convinced that for most of the cars, it was far cheaper than paying cash would have been once depreciation at the end of the term is factored in.
If you can pick the right car, the contract hire/lease firms can gain access to discounts not available to the general public due to bulk purchasing power and also gain access to corporate rate finance, cheaper than that available on the High Street. Factor in to the equation free road fund licence, full manufacturer's warranty, the modest servicing needs of a new car and if you get a short contract, you may not even need tyres.
It can be an attractive way forward if (and only if) you are quite willing to be stuck with the car for the full term (or face high penalties) and recognise that your monthly payment is basically paying for depreciation plus a bit of finance and you walk away with nothing.
Compared to buying a £10k 3/4 year old car on finance there is a good likelihood that leasing its £20k brand new equivalent would cost the same or less overall.
Check out the contracthireandleasing website as the monthly costs for identical lease cars can vary enormously and don't be afraid to try and negotiate both the monthly cost and the mileage penalty.
Obviously, a prudent secondhand purchase could offer greater flexibility, could cost significantly less and could get you a more interesting vehicle but leasing can make sense and offers fixed price motoring and a car nobody has ever driven before (if that's important to you)!
I am convinced that for most of the cars, it was far cheaper than paying cash would have been once depreciation at the end of the term is factored in.
If you can pick the right car, the contract hire/lease firms can gain access to discounts not available to the general public due to bulk purchasing power and also gain access to corporate rate finance, cheaper than that available on the High Street. Factor in to the equation free road fund licence, full manufacturer's warranty, the modest servicing needs of a new car and if you get a short contract, you may not even need tyres.
It can be an attractive way forward if (and only if) you are quite willing to be stuck with the car for the full term (or face high penalties) and recognise that your monthly payment is basically paying for depreciation plus a bit of finance and you walk away with nothing.
Compared to buying a £10k 3/4 year old car on finance there is a good likelihood that leasing its £20k brand new equivalent would cost the same or less overall.
Check out the contracthireandleasing website as the monthly costs for identical lease cars can vary enormously and don't be afraid to try and negotiate both the monthly cost and the mileage penalty.
Obviously, a prudent secondhand purchase could offer greater flexibility, could cost significantly less and could get you a more interesting vehicle but leasing can make sense and offers fixed price motoring and a car nobody has ever driven before (if that's important to you)!
I was going through this process myself recently - you forgot one of the big con's in your least decision though IMO -
Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and f
kwit dinging your car in a car park or whathaveyou...
Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and f
kwit dinging your car in a car park or whathaveyou...
Carrot said:
I was going through this process myself recently - you forgot one of the big con's in your least decision though IMO -
Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and fkwit dinging your car in a car park or whathaveyou...
Very true, I should have added that in as it is for the Mrs. I look after her car well in terms of maintenance and cleanliness but her 206 is looking a bit battered recently. I've bought her god knows how many fricking hub caps for it!Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and f
kwit dinging your car in a car park or whathaveyou...So this is something to really think about. Will she be bloody careful in it and keep it nice or will she have a few "blonde" moments and accidentally scrape the mirror on a wall that must have moved itself into her car????
Some horror stories about regarding repair costs over and above wear and tear upon returning the vehicle.
In 5 cars, I never had to pay a penny. I give one of my colleagues a company car and she's now on her 4th lease car and never had to pay anything either (although she did get a couple of £50 smart repairs carried out on her last Mini before it went back). A former colleague went through 6 cars and only had a bill for one - his cars were only ever cleaned if the dealer valeted them at service time and were generally pretty abused - the bill wasn't unreasonable given the state it was in with various scratches. So, whilst not statistically sound, 1 in 15 cars have had additional costs in my personal experience.
Only other charges have been for excess mileage which you know about in advance anyway. Bear in mind, you don't get a refund if you go under so try and predict the mileage carefully!
In 5 cars, I never had to pay a penny. I give one of my colleagues a company car and she's now on her 4th lease car and never had to pay anything either (although she did get a couple of £50 smart repairs carried out on her last Mini before it went back). A former colleague went through 6 cars and only had a bill for one - his cars were only ever cleaned if the dealer valeted them at service time and were generally pretty abused - the bill wasn't unreasonable given the state it was in with various scratches. So, whilst not statistically sound, 1 in 15 cars have had additional costs in my personal experience.
Only other charges have been for excess mileage which you know about in advance anyway. Bear in mind, you don't get a refund if you go under so try and predict the mileage carefully!
Mileage doesn't seem to affect the price too much though!
She only does 6000 miles a year and it makes no difference if we enter 6000 or 8000 miles.
Noted though, maybe being worried about the odd little stone chip etc isn't needed!
It's just such a tough call that I can't even decide what I'd do tbh. It's horses for courses.
She only does 6000 miles a year and it makes no difference if we enter 6000 or 8000 miles.
Noted though, maybe being worried about the odd little stone chip etc isn't needed!
It's just such a tough call that I can't even decide what I'd do tbh. It's horses for courses.
Carrot said:
I was going through this process myself recently - you forgot one of the big con's in your least decision though IMO -
Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and fkwit dinging your car in a car park or whathaveyou...
Not true.Con - They will try to roger you on every single tiny mark, scratch or imperfection when handing the car back.
although you may take good care of your cars, you can't stop every Tom, Dick and f
kwit dinging your car in a car park or whathaveyou...Most of the large leasing companies use BVRLA standards which are quite clear on the amount of fair w&t. Check out their website for more details.
Kiltox said:
Check for PCP deals on the same cars instead of leasing - you then have more choice than to just hand it back at the end (final payment, sell it, trade it in, etc)
Looked at these, normally you have to do it over 3 years and they work out a lot more per month... which basically cancels out any equity you may have in it.va1o said:
Depends really. Could the savings be put to better use elsewhere? Are you in a stable job and easily able to afford the monthly rental for a new one? If your likely to change it every 2-3 years then leasing is probably the way forward in this situation.
We're both in Recruitment and doing quite well. She has a lot of money spare each month so we're both saving, but she wants a new car and deserves it. I'm swaying more to the leasing as is she, I think the image of getting a new car (esp an Audi A1) is very appealing to her.blueg33 said:
Some of it is down to negotiation skills and timing! I drove my new A6 away from the dealer for a lower price than lesser spec used ones on his forecourt 
Absolutely. I think timing is off though as the A1 seems to be highly sought after, esp on the deal they're offering on it (£50 per month cheaper than a DS3 over 2 years not 3!)Gassing Station | General Gassing | Top of Page | What's New | My Stuff