Leasing - the way forward??

[John]

If people didn't lease new cars, there would be a lot used cars on the market... so I am glad they do!

 

[Deleted member 113659]

As Renault12ts says. We're all different. I for one like to have new cars. Not because I'm a snob, but because I love new cars and enjoy them a great deal.

I'm lucky that I can afford the deposit and monthlys. I can not afford to lay out £40,000+ to buy a car for cash. So for me, leasing suits my needs.

I could buy a £10-15,000 car and keep it. But, I'm happy leasing. Simples.

Ant

 

[Little Lofty]

I don't keep cars for long, 18 months max and I've done all three, bought for cash, PCP and leased. There is no right or wrong. I bought a new van 3 years ago for £13995, I sold it after two years for £9500, so it cost me £4500. I now lease one for £165.00 per month for 24 months, plus deposit meaning a total of £4300. It was a no brainer to lease as I don't tie up £14k and also save a few hundred quid. A premium £30k car will loose approx 50% over 3 years, so that's £15k lost if bought for cash, and a little bit of interest lost as you don't have the £30k in you bank. If you can lease it for £10k then you'd have to be mad to buy one. The only downside to lease is being tied to the car for a set period, most MB deals seem to be 2 years so that's not too bad. If the residual is good and the APR reasonable then PCP can also be a good way to fund. No matter how you fund a new car you will loose money, whether that's depreciation or a fixed monthly lease.

 

[Deleted member 113659]

but for most people there is no need to have the latest model of car.

That's not even relevant. No one NEEDS the latest car. But if one chooses to want one then leasing is cheaper than buying!

The example I gave in lease v's buy then less money is lost on the lease deal.

And I've not lost £10,118 with nothing to show. I've totally enjoyed a car I adore for 2 years. Not saying it's value for money, but like you, I own my own house, no other debt and apart from the odd glass of wine I have no other vices to pay out for.

Ant.

 

[Dryce]

No one NEEDS the latest car. But if one chooses to want one then leasing is cheaper than buying!

(*May* be less costly than buying. Depends on marque, model, and deals on the day).

As long as you're aware of what your car costs and it gives *you* back whatever it is that you are looking from it that is worth that cost then what's not to like?

At the other end of the spectrum bangernomics is fine in principle. Some people are stuck in it as trap rather than by way of choice. Others can choose it as their strategy to prioritising motoring costs in their life.

 

[Red C220]

In essence, this thread that pops up every couple of weeks or so is thus:-


Some people like new cars and can afford them. Others like new cars and stretch to them. Others like new cars and buy them at a detriment to their personal financial circumstances but it makes them feel good.

Some people don't like depreciation despite being able to afford it. Others don't like depreciation as they can't afford it and have better things on which to spend their money.

Some people struggle to afford a car at all as they are trying to make ends meet.

Some people despite being able to afford new cars, buy used cars due to the steep depreciation curve, other buy really old cars and treat them as effectively "disposable".

When a "disposable" vehicle reaches a certain age, if it hasn't rusted away too much it becomes a "classic" and eventually starts to go up in value. Then things start to get really expensive because it's worth it to "save" the car and it has intrinsic value Despite the fact it probably should be scrapped and replaced by a 5 year old Ford Fiesta.

Then add to this the varying ways of financing the depreciation, buying the car, renting it etc etc and somewhere in there you'll find something that works for you.

Trying to compare them or judging people on which they choose is fruitless and pointless.

 

[Deleted member 113659]

In essence, this thread that pops up every couple of weeks or so is thus:-


Some people like new cars and can afford them. Others like new cars and stretch to them. Others like new cars and buy them at a detriment to their personal financial circumstances but it makes them feel good.

Some people don't like depreciation despite being able to afford it. Others don't like depreciation as they can't afford it and have better things on which to spend their money.

Some people struggle to afford a car at all as they are trying to make ends meet.

Some people despite being able to afford new cars, buy used cars due to the steep depreciation curve, other buy really old cars and treat them as effectively "disposable".

When a "disposable" vehicle reaches a certain age, if it hasn't rusted away too much it becomes a "classic" and eventually starts to go up in value. Then things start to get really expensive because it's worth it to "save" the car and it has intrinsic value Despite the fact it probably should be scrapped and replaced by a 5 year old Ford Fiesta.

Then add to this the varying ways of financing the depreciation, buying the car, renting it etc etc and somewhere in there you'll find something that works for you.

Trying to compare them or judging people on which they choose is fruitless and pointless.

I totally agree. People do what's right for them.

However I never judge anyone, and in return I expect not to be judged.

I posted on this thread to give my opinion on the subject by the OP. I've never criticised anyone's post and never will.

Ant.

 

[Red C220]

However I never judge anyone, and in return I expect not to be judged.

That wasn't aimed you or anyone specifically, but it is clearly in peoples minds when this subject is discussed.

It really is a circular argument, that needn't be an argument at all.

 

[Deleted member 113659]

That wasn't aimed you or anyone specifically, but it is clearly in peoples minds when this subject is discussed.

It really is a circular argument, that needn't be an argument at all.

Hi Red. No worries there. I know your post wasn't aimed at me. Nor was mine aimed at you.

Your views always make perfect sense.

Ant.

 

[Spin_bowler]

In essence, this thread that pops up every couple of weeks or so is thus:-


Some people like new cars and can afford them. Others like new cars and stretch to them. Others like new cars and buy them at a detriment to their personal financial circumstances but it makes them feel good.

Some people don't like depreciation despite being able to afford it. Others don't like depreciation as they can't afford it and have better things on which to spend their money.

Some people struggle to afford a car at all as they are trying to make ends meet.

Some people despite being able to afford new cars, buy used cars due to the steep depreciation curve, other buy really old cars and treat them as effectively "disposable".

When a "disposable" vehicle reaches a certain age, if it hasn't rusted away too much it becomes a "classic" and eventually starts to go up in value. Then things start to get really expensive because it's worth it to "save" the car and it has intrinsic value Despite the fact it probably should be scrapped and replaced by a 5 year old Ford Fiesta.

Then add to this the varying ways of financing the depreciation, buying the car, renting it etc etc and somewhere in there you'll find something that works for you.

Trying to compare them or judging people on which they choose is fruitless and pointless.

This.

I leased this time as it suited me, my motoring needs and my financial circumstances. I might not next time if any of those changed. There is no right or wrong.

 

[John]

What I don't understand is why some knock the choices of others.

I don't buy a new car every 3 years on lease because I wouldn't want to and I couldn't afford the kind of cars I like.

But if you want to do that - you're most welcome...

 

[tec]

What I don't understand is why some knock the choices of others.

The OP's headline post was misleading 'Leasing - the way forward??'

But the OP seemed to be only comparing independent lease deals with MB dealers, and so this thread has nothing to do with if leasing a MB is more sensible than buying one for £500 from ebay.

 

[Red C220]

The OP's headline post was misleading 'Leasing - the way forward??'

But the OP seemed to be only comparing independent lease deals with MB dealers, and so this thread has nothing to do with if leasing a MB is more sensible than buying one for £500 from ebay.

It's like a metaphorical red hanky to a red bull for some of the more militant members among us that just can't help themselves.

 

[markjay]

The cars I had so far cost me on average around £1.5k-£2.0k a year in depreciation.

I tend to buy nearly-new and keep for 5 to 8 years.

 

[Red C220]

The cars I had so far cost me on average around £1.5k-£2.0k a year in depreciation.

I tend to buy nearly-new and keep for 5 to 8 years.

That sounds like it's about the sweet spot, if you get lucky and have no major mechanical issues that's comfortable and efficient motoring.

 

[markjay]

That sounds like it's about the sweet spot, if you get lucky and have no major mechanical issues that's comfortable and efficient motoring.

When you a buy a car that's still under manufacturer's warranty, by the time it expires you get a feel for the car, and know if it's a keeper... and yes I've been lucky and never had to spend any significant amount of money on repairs.

In fact as the cars get older it gets easier... when the car's value is down to low single thousands, my financial exposure to incurring potential costs is in fact limited to the (ever declining) current value of the car....

 

[markjay]

If I were to buy a one or two years old W204 today and keep it for 10 years, the value of a 11-12 years old Merc will be negligible.

I will probably pay for a basic-spec C180 between £17k and £20k today (compared to £26k-£30k when new). So a worse case scenario is £2k annual depreciation for me as second owner - on average.

But depreciation is not linear, the key is to buy at the right point of the depreciation curve and then keep it for a number of years.

 

[Dryce]

The cars I had so far cost me on average around £1.5k-£2.0k a year in depreciation.

I tend to buy nearly-new and keep for 5 to 8 years.

I wrote this when I moved on from my w211:

http://www.mbclub.co.uk/forums/general-discussion/147885-82-good-months.html

Depreciation over the 82 months I owned the car was £207/month and maintenance costs £47/month over the life of the car. Had I kept the car longer the costs would have probably been about the same with the maintenance costs increasing to offset the reducing depreciation.

However there was increasing risk of a major unplanned cost such as SBC pump replacement which would have impacted the maintenace costs over the final period of ownerhsip had it been incurred.

My feeling is that the £47/month number - which included a lot more than servicing - makes MB's service package on new cars look expensive at £30 or more per month given that it's just basic servicing and within the initial 3 year warranty period Mobilo recovery is included anyway.

 

[markjay]

Also - regardless of the calculations, as others pointed out, in order to be able to benefit from any upfront payment savings, you will need to have access to the capital first.... otherwise the Pros and Cons of leasing are pretty much academic.

Lease, like mortgage, is a good option for people on steady income but no or little free capital.

 

[nick mercedes]

Also - regardless of the calculations, as others pointed out, in order to be able to benefit from any upfront payment savings, you will need to have access to the capital first.... otherwise the Pros and Cons of leasing are pretty much academic.

Lease, like mortgage, is a good option for people on steady income but no or little free capital.

Surely HP is better for the people with no money?

At least that way they end up with something for all those payments.