Lease or buy new car?

[Grain Buyer]

My mate had a pickup on hire for a week, he asked me to take it back for him so i did, on arrival 3 of them appeared with clip boards and crawled all over the pickup looking for a new dent scratch etc etc etc and checked fule level 3 times cleanlines of cab etc etc it took them ages i was shocked then thee penny dropped, the hire rate was cheap as chips but see if you scratch it or dent it ££££££££££££££££££££££ they do in house service repair and this is where they make the money out of you they desperate for you to dent scratch them and not fill them up with fuel ! i suspect some of the lease deals could be similar.

Had this with OK rental in Spain (avoid like the plague). Returned my holiday hire car, and the bloke was straight onto a tiny scratch that I thought was a hair. He started righting on his pad and I licked my thumb and wiped it off. Got back home and the credit card had been deducted 800 euro's for repairs!!! Good thing was, I called Barclay's, told them the craic, they refunded my card, and nothing was ever said or done.

 

[Lincsman]

You can do this. Car company simply calculates depreciation over the lease period and costs it out like that. Wife looked at a 3 yr old Q3 on that basis but the difference in the deprecation calc was more attractive to lease new.

So for example a 20K car depreciates 10K in 3 years but the lease costs you say £5k but you can then buy it at 3 years from them for £10K ...total cost £15K?

 

[Old John]

Ok so who is best to lease from? Car manufacturers themselves or try a comparison website?

Any recommendations on leasing firms?

I've always found that manufacturers have the best deals as they want to shift their product. Sometimes they want to get their sales up the new car charts, sometimes they have too much stock. If you are not too fussy about the brand and don't want lots of extras, you can find real bargains. I've used "What car leasing " and found some real good deals.
One of the main reasons that leasing can be cheaper, is that the lease company owns the car, they lease it to you, that's their business, therefore they can claim 100% of the VAT back which gives them quite a price benefit over anybody else, some of which they pass on . They also shift LOTS of cars this way. It helps keep their factories open, sales up, looks good for them to sell more. Lots of reasons for manufacturers to subsidise this method.

 

[icanshootwell]

So for example a 20K car depreciates 10K in 3 years but the lease costs you say £5k but you can then buy it at 3 years from them for £10K ...total cost £15K?

Surly over 3 years lease you would spend 10k, or have i missed something

 

[Derrick Hughes]

As a rough ride devide the purchase price by 4

 

[icanshootwell]

What about the 4 or 5 grand deposit you pay at the start as well

 

[Derrick Hughes]

What about the 4 or 5 grand deposit you pay at the start as well

You pay the first 3 months up front .

 

[Grain Buyer]

the way I understand it on my wife's car is...

a) the car is worth 35k
b) in 3 years time in good condition and 30,000miles it will be 25k
c) Car has lost 10k in value.

She paid 3 months up front (£810) and 33 further payments of £275= 10k ish

She's paid 10k to have it for 3 years, which is what she'd have lost in depreciation, and she can keep her 35k in the bank. Risk to Land Rover is if the car is worth less than 25k come the time, and with this backlash on diesels, that might be the case, but not our worry.

 

[Grain Buyer]

So for example a 20K car depreciates 10K in 3 years but the lease costs you say £5k but you can then buy it at 3 years from them for £10K ...total cost £15K?

I'd expect the lease costs to cover all depreciation. She looked at the new Seat SUV, but the monthly costs were much higher than the RRE as the deprecation on a Seat is high, whist Audi and Land Rover have higher second hand values.

 

[Derrick Hughes]

I will never but a car out of warranty ever again. these modern things are expensive to repair when they go wrong and the ones I had did that more often than not. take it to a garage and wait for the call. I'm afraid we have some bad news, it's going to cost more than we thought .

 

[Lincsman]

Surly over 3 years lease you would spend 10k, or have i missed something

No because i am constantly told the lease is less than deprecation and thats the only reason people do it, otherwise they would buy and sell it after 3 years. ( my 5K to 10K was just to show a clear example)

 

[Lincsman]

the way I understand it on my wife's car is...

a) the car is worth 35k
b) in 3 years time in good condition and 30,000miles it will be 25k
c) Car has lost 10k in value.

She paid 3 months up front (£810) and 33 further payments of £275= 10k ish

She's paid 10k to have it for 3 years, which is what she'd have lost in depreciation, and she can keep her 35k in the bank. Risk to Land Rover is if the car is worth less than 25k come the time, and with this backlash on diesels, that might be the case, but not our worry.

Can she then buy it for £25K? (fixed now?)

 

[Old John]

the way I understand it on my wife's car is...

a) the car is worth 35k
b) in 3 years time in good condition and 30,000miles it will be 25k
c) Car has lost 10k in value.

She paid 3 months up front (£810) and 33 further payments of £275= 10k ish

She's paid 10k to have it for 3 years, which is what she'd have lost in depreciation, and she can keep her 35k in the bank. Risk to Land Rover is if the car is worth less than 25k come the time, and with this backlash on diesels, that might be the case, but not our worry.

I wish I had a car like that! If you look at second hand values, you usually get about 50% of new price at three years old, if you're lucky, some much less. Forecourt price nothing to do with your trade in price, the difference is the profit that dealers use to make up for what they don't make on the new ones any more.

 

[joe soapy]

Nothing. It isn't allowed. Its no cheaper for the vast majority of cars. Hence the popularity of pickup trucks which are commercial vehicles and can justifiably have tax advantages for purchase, yet a private use adjustment will also normally be applied.
There's a lot of bullpoo talked about this.

There is, or was a rule for company cars given to employees earning under a certain amount not to be charged for the use of car

 

[Cowabunga]

I will never but a car out of warranty ever again. these modern things are expensive to repair when they go wrong and the ones I had did that more often than not. take it to a garage and wait for the call. I'm afraid we have some bad news, it's going to cost more than we thought .

German cars You just wait until you find that the Mercedes garage charges you £50 per wheel extra for just removing and replacing each wheel on top of their standard hourly labour charge. Ouch!



Should have taken it to Perris Garage, just down the road from you. You can buy extended warranty for most cars, which might suit you.

 

[Derrick Hughes]

No because i am constantly told the lease is less than deprecation and thats the only reason people do it, otherwise they would buy and sell it after 3 years. ( my 5K to 10K was just to show a clear example)

That's not the reason I did it

 

[Farma Parma]

Its just like Tractors there lots of ££££ new but 3yrs later there ni on half there value.
Why do Cars have to loose 50% of there Value in 3years ? who came up with this the Car Cartells?
My 3yr old just past Car which i bought at 9months old & wait for it hasnt clocked 17,000miles yet.
should be worth far more... but on paper its possibly worth £400 than the same model etc etc thats clocked 50k or 60k
wheres the logic in that ?

 

[Courier]

Its just like Tractors there lots of ££££ new but 3yrs later there ni on half there value.
Why do Cars have to loose 50% of there Value in 3years ? who came up with this the Car Cartells?
My 3yr old just past Car which i bought at 9months old & wait for it hasnt clocked 17,000miles yet.
should be worth far more... but on paper its possibly worth £400 than the same model etc etc thats clocked 50k or 60k
wheres the logic in that ?

17,000 miles in 3 years - Probably cheaper to use a taxi .....

 

[Farma Parma]

17,000 miles in 3 years - Probably cheaper to use a taxi .....

haha i do drive a second farm run about but dont do many miles in that neither.
Live where you work no commute...

 

[Wombat]

There is, or was a rule for company cars given to employees earning under a certain amount not to be charged for the use of car

All employees get charged for a company car if they can use it for private use.