Leasing - the way forward??

Discussion in 'Insurance & Finance' started by Horrgakx, Oct 8, 2015.

  1. Horrgakx

    Horrgakx Hardcore MB Enthusiast

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    I saw a thread in here discussing PCP, my experience when I went to MB Carlisle they couldn't touch a lease deal I was looking ar but what was surprising was that no room for negotiation, it was either take it or leave it. So I leased.
    I went with this deal; https://www.selectcontracts.co.uk/m...plus_4dr_auto-69532-personal-car-leasing.html
    It's not the first MB I've had (I owned and E55 AMG) but it is the first new car I've ever had ;)
     
    Last edited: Oct 8, 2015
  2. nick mercedes

    nick mercedes MB Club Veteran

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    Not sure about the way forward, expensive motoring in reality, £3k up front and £300odd a month that you'll never see again and a car you'll never own.
     
  3. Rory

    Rory MB Club Veteran

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    Depends what you're comparing it to - if you're going to get a new and change is every 3 yrs then it may well be the cheapest way of doing that.

    I just went through this with a VW and, using an estimated value at 3yrs there was nothing in it. I decided to buy, but since the VW scandal hit I'm probably going to lose out. No worries in that respect if you lease.

    The main downside to me seems to be there's no flexibility if your circumstances change.
     
  4. nick mercedes

    nick mercedes MB Club Veteran

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    How many people actually do that though?

    I read 90% of new Mercedes are on PCP, would any of the PCP addicts actually have had the means to buy one out right?

    Same reason people shop at Brighthouse I fear.
     
  5. Red C220

    Red C220 Hardcore MB Enthusiast

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    Out of curiosity how many new cars are bought outright as a percentage (across all brands) anyone happen to know this statistic?

    I was watching a program about mortgage lending some time back and was surprised by the statistic of "thirds" on property.

    Of all property
    About a third are rented
    About a third are owned outright.
    The final third are owned with a mortgage.

    I think that was right, since then though the number owned outright has increased to over 35%. I found that surprising but I don't why as I guess much of it is inherited?
    I wondered how this compared to new vehicle sales?
     
  6. nick mercedes

    nick mercedes MB Club Veteran

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    1st third is rented because we are in the midst of a property bubble and anyone on a regular wage has no hope of buying.

    2nd third is because old people live forever now, people who bought their semis in the 1960s/70s for £1500 and have long paid off their mortgage.

    3rd third is the people who bought some time ago or have managed to save the fortune needed for a deposit, and all the over levereaged buy to let men.
     
  7. OP
    OP
    Horrgakx

    Horrgakx Hardcore MB Enthusiast

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    Maybe those 90% are happy just to walk into the dealer and accept it? Maybe they don’t know there’s a cheaper alternative?

    I’m fortunate to be in a position at the moment that I just set aside a monthly budget for running a car and change it every 2-3 years. I don’t need to worry about residual values or balloon payments. Really, I don’t see any advantage in actually owning the thing.
     
  8. nick mercedes

    nick mercedes MB Club Veteran

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    Because you are not tied into 3 years of payments and actually have an asset?
     
  9. boxbrownie

    boxbrownie Hardcore MB Enthusiast

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    Me.........usually change anything from 14-24 months.
     
  10. Happytalk73

    Happytalk73 MB Club Veteran

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    I think leasing is great if you want a new car every 3 or so years. If you worked out the deposit+per month payments. Added together. I think it would be less than buying a car cash, then selling it after 3 years. Therefor cheaper to lease.

    However, if you're going to spec a car up and keep it until the wheels fall off its going to be less money spent per year overall.

    My lease is £2850 deposit. £316 per month over 2 years. 10,000 mile pa. non maintenance.

    Car is C250d estate AMG Line premium in Brillant blue. £10,118 in total. I'm sure the car would loose more than that in deprecation in 2 years.

    Certainly not cheap @ £421 pm but cheaper way to drive a new model car.

    Let's face it, we all have a very expensive addiction. If we were sensible we'd be driving cars worth 2k and putting £400+ away in the bank or investments for our future.

    Ant
     
  11. Dryce

    Dryce MB Club Veteran

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    That's because of the way MB provide an automatic discount to cars that sold that way.

    My only issue with these threads is the dogma.

    People don't all want to drive old cars - so they accept the premium associated with a new (or newish) car. Once in that part of the market there are various ways to pay that premium - and MB make PCP one of the most obvious and attractive.
     
  12. Dryce

    Dryce MB Club Veteran

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    But that's not actually a cheap way to run a car.

    So as long as you accept that you are basically just comparing ways of dealing with the cost of the *steepest part* of the depreciation curve because you are willing to pay the premium for running a new car.
     
  13. Happytalk73

    Happytalk73 MB Club Veteran

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    Please re-read. I didn't say 'cheap' I said "cheaper" meaning if you're going to want a new car every 2-3 years leasing is cheaper than buying.

    Ant
     
  14. Rory

    Rory MB Club Veteran

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    Even that's debatable - I've had my car 10yrs and it's probably depreciated £250/mth. Add in all the costs of servicing / MOT / Repairs / tyres etc etc and it's not a million miles away from a shiny new one every 3 yrs.

    Plus cars get so much more complicated now - I wouldn't want to run a recently made car once it gets out of warranty.
     
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  15. KennyN

    KennyN Hardcore MB Enthusiast

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    IMHO the issue i have with the lease deal is that at £300pm (min) + initial rental over 36 months sees me being out of pocket to the tune of around £13k and having nothing to show for it at end of the deal apart from a new (ish) car on my driveway that isnt really mine.

    Not being a "plate snob" I would rather have a £13k car that is mine and can be changed as and when i could afford it.

    My daughter was contemplating a lease deal when she "donates" her car to my son when he passes his test , but for the reason mentioned above we are lending her the money to buy a £4k runaround which will still be usable for many years after it has been paid for.

    Kenny
     
  16. Will

    Will MB Club Veteran

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    Trouble is, a £13k car still has lots of depreciation to go and will need more maintenance and repairs/MOTs than a new one. Likewise, at 3 years old, it will be out of warranty - any repairs down to the owner.

    New cars aren't cheap, but they're not always as expensive as you think.

    Buy a £500-1000 car and run it into the ground for cheap motoring.

    'Bangernomics'
     
  17. KennyN

    KennyN Hardcore MB Enthusiast

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    Agreed ,to a point - but :

    The depreciation on a 3+ year old car is a fraction of the money that a new car will loose over the first three years (i think my CLS lost around 1k pm in dep. during its first three years) plus i dont know anyone that pays out £300 + pm on repairs and servicing to a decent second hand car just to keep it on the road , if that were the case it would be time for a new motor.

    Gone are the days when a car over five years old with 60k on it means it is ready for the scrap heap. Our daughters Clio is nine years old has almost 90k on it and has had a hard life prior to us getting it and apart from consumables (and a lambda sensor) it has been ultra reliable.

    Kenny
     
    Last edited: Oct 8, 2015
  18. tec

    tec Hardcore MB Enthusiast

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    I have bought a nearly new car before, but would never do it again.

    You have effectively thrown away £10,118 over 2 years with nothing to show for it when the lease ends.

    We don't all have an expensive addiction as you seem to think, and for me I don't have to make sure I save a bit each month as I am not that short of cash.

    I own two cars outright. My mortgage is paid, and I have no debts despite being currently unemployed.

    I can see leasing being a good idea if your employer gives you a car allowance, but for most people there is no need to have the latest model of car.
     
    Last edited: Oct 8, 2015
  19. renault12ts

    renault12ts MB Club Veteran

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    I have owned my old bus for 6 years and 9 months, I have put just over 60,000 miles on it...it has cost me to date £8091...including buying it. This is bangernomics at it's best...on average just short of £100 per month so far, but that reduces every year.

    I don't want a new car...but if I did it would be an outright purchase, because I'd keep it a long time. The different deals for new cars are just ways, as has been said, of dealing with the depreciation.

    It's horses for courses, nobody is wrong, we all just do what we want.
     
  20. KennyN

    KennyN Hardcore MB Enthusiast

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    One of the chaps at work has been leasing his car since he started with us some six years ago , a new Qashqui and two 3 series BM`s which must have cost him at least 21k + deposits over that time.

    He is now in the lease trap and if opts out at the end of this deal he has nothing to drive.

    Kenny
     

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