I compared lease with purchase when we bought this car 5 yrs ago and its 'cost' us £225/month in depreciation. So not sure if lease or purchase is best tbh.. anyone care to comment on pos and negs of both?
Thanks. So no one on here leases cars? [emoji20]
I've got a feeling we'll move to hire for my wifes car as @How much points out, the second hand value of diesels may plumet. It wont be through the business but it could be I suppose, need to ask the accountant about that.. I like the thought of no capital tied up in a depreciating asset and no risk on our part. I have a cheap run about for work and a Disco 3 which wont be changed anytime soon. So keen to try out the leasing and see how it works for us. My wife does around 15k per year so shouldnt be a problem for lease companies or does it get expensive over 10k?
it's so much a mile weather you do 10; 000 or 100;000 price is the same per mileI've got a feeling we'll move to hire for my wifes car as @How much points out, the second hand value of diesels may plumet. It wont be through the business but it could be I suppose, need to ask the accountant about that.. I like the thought of no capital tied up in a depreciating asset and no risk on our part. I have a cheap run about for work and a Disco 3 which wont be changed anytime soon. So keen to try out the leasing and see how it works for us. My wife does around 15k per year so shouldnt be a problem for lease companies or does it get expensive over 10k?
it's so much a mile weather you do 10; 000 or 100;000 price is the same per mile
yes they charge per mile that's what I said . if you buy a new car every mile you do costs you something .the more you do the more it costs .Not quite that simple Try doing a contract hire or PCP on 10,000 miles pa or 30,000, there will be quite some difference in the monthly charge
it's so much a mile weather you do 10; 000 or 100;000 price is the same per mile
With respect what you said is quoted here!yes they charge per mile that's what I said . if you buy a new car every mile you do costs you something .the more you do the more it costs .
It makes a big difference on if you are using it for business , as in paying for it through your business or if its a personal vehicle for you wife.
also how long you intend to keep it and how many miles you do have a bearing on it also.
From my wifes point of view she changes her car every 3 years , has always bought the car outright in advance up to the last one bought .
However when selling to car buying site , or part ex-ing for new one always very disappointed by value as it was usually worth a 3rd of the original purchase cost sometimes up to 40% but never more. so it was costing between 60 to say 66% of the capital to own the car.
so last vehicle she got she asked about hire, the salesman wanted to get her on a contract purchase deal , but there is no advantage to that if you had the money to buy it outright anyway .
Eventually he came back with a simple 3 plus 33 payment hire deal on 15,000 miles that when multiplied up came to only 40% capital cost so a good saving.
in addition the excise duty is paid by the hire company , she services it and puts tyres on as she would if she owned it.
At the end of the hire there could be charges for excess wear or damage but these are over and above what would be expected for mileage and age so should not be
an issue.
It works for her ok at the end of the hire she gives it back and hires another I dare say she could extend it maybe , but wont .
currently it will work in her favour even more as its a diesel and i suspect diesel residuals will be in free fall now that risk is with the hire company.
There are some good deals to be had if you pick the right model , i supect there are some great deals currently on overstocked diesel models as the factories will overstocked with them since there sales have slowed so much.
seems mad to me that you can hire a vehicle cheaper than you can buy it for cash but the salesman said national leasing companies are on complete different discount structure to what the dealer can offer locally to his customers , even if he supplies the vehicle.
Costs about the same either way. Only benefit with owning is you can keep it for an extra couple / few years if you want. With a contract hire it goes back at the end of the term and you start again.I compared lease with purchase when we bought this car 5 yrs ago and its 'cost' us £225/month in depreciation. So not sure if lease or purchase is best tbh.. anyone care to comment on pos and negs of both?
In time used diesel prices will rise due to less supplied new, they still do what they were supposed to do.