Leasing V Outright purchase

[bobbersmill]

It varies from car to car but I always look at what I think my car would be worth in 2 years then look at all three options, if the depreciation is likley to be 24k and the lease payments are 800/mth then its a no brainer.
You also have to factor in discounts when buying outright some people just look at the list price when doing the above calc but 10%+ discount is pretty much acheivable on most cars nowadays.
Some people dress it up in all kinds of ways to make themselves feel like they are getting a good deal (see posts by serial buyers), the reality is us blokes love cars and cant resist being seduced by garages but its never going to be anything else other than a costly excersise.

 

[jaymanek]

the consumer boom .. why the country is broke.

too many people living beyond their means for too long.

We need to follow the example of booming economies....

Go and mention HPI in China and you will have your tongue cut out.

Far too many people leveraging today, on an uncertain tomorrow... and this is why the big multinationals are leaving us and moving new efforts to greener pastures over to the east... At this rate, in 20 years the UK will be an island that no one internationally cares about...

The only time I would finance is if the rates were less than the interest I could get by leaving the cash in a secure savbings account.

 

[C240Sport97]

The only time I would finance is if the rates were less than the interest I could get by leaving the cash in a secure savbings account.

after tax is deducted from the interest paid on the savings

 

[jaymanek]

Oh yes we musnt forget the prince's dinner money fund.

 

[bpsorrel]

oh yes we musnt forget the prince's dinner money fund.

lol!

 

[davethemus]

because of this thread i had a look and a 2.2d jaguar xf £417 a month for 36 months.
an E class 2.0 blueeff £320 a month.
have to say i love the xf's and £417 is well worth it IMO.

 

[A210AMG]

I've just been looking at some of these lease cars....

wow no wonder I see so many new Mercs !!!

Can you put a private plate on a lease car though? or do you have to have it on the plate it comes with as you don't actually own it?

 

[bpsorrel]

Deals must be very good right now as I'm seeing loads of new ones in my town now whereas a couple of years ago I saw hardly any. Becoming a common sight sadly...

 

[flowrider]

I've just been looking at some of these lease cars....

wow no wonder I see so many new Mercs !!!

Can you put a private plate on a lease car though? or do you have to have it on the plate it comes with as you don't actually own it?

Whilst you are using the vehicle you can do want ever you want with it as long as when you return it the vehicle meets the returns policy.

David

 

[flowrider]

I have been leasing cars for years on PCP. I usually go for a 4 year deal with minimum deposit and return the vehicle after 2.5 years with no penalty or further payments to make. When I got the ML I went for a used vehicle and traded in my Audi for the cost of settling the finance after only 2 years of ownership.

David

 

[Deleted member 37751]

Wasn't there a thread not so long back where a forum member said you could get a C63 for £500 odd month with £1500 deposit?

 

[A210AMG]

£300 inc vat per month for a C250cdi Sport ED125 estate,10K per year for a private buyer thats why they are popular. (£1500 deposit)

really no point buying one even a newish second hand one. Basic car is around £32K list, so guess around £29K actual price after discount.

OK this is 'base' as it comes spec, but these days that isn't too bad. Gone of the days of having to buy a radio and even electric rear windows

Brand new car, warranty etc, nothing to worry about until first service at 15,000 miles?

Sounds cheap motoring to me


some cheap deals, 730d BMW for £399 plus vat, E220Cdi SE £229 plus vat, just did a quick google and was supprised at the deals on offer.

 

[clk208]

£300 inc vat per month for a C250cdi Sport ED125 estate,10K per year for a private buyer thats why they are popular. (£1500 deposit)

really no point buying one even a newish second hand one. Basic car is around £32K list, so guess around £29K actual price after discount.

Agree this seems like a steal if you are in the market of this type of car. I think it would be very difficult to even buy such a car at a couple of years old, run it for 3 years then sell on without it costing significantly more than this. Plus you are getting a shiny brand new car!

I guess the downsides are having to stick to agreed mileage limits and potentially fretting about any little scratch, mark on the wheels or whatever for fear of huge charges at the end of the contract.

Offset against not having the hassle of selling, etc.

If I am ever in the position to afford/want a new MB I would def not rule out leasing.

 

[Red C220]

Can you put a private plate on a lease car though? or do you have to have it on the plate it comes with as you don't actually own it?

Yes you can, my sisters contract hire car (through my business) has just reached the end of the lease.

We put her private plate on it when it was ordered, then a few months before it's due to be returned we take it off and get it put on retention.

When the plate is first assigned, you sign a guarantee document which transfers ownership of the number to the lease company should you default on the contract. As long as you pay the contract you retain ownership.

 

[jaymanek]

^ We seem to be seeing a lot of cars with the private plates left on recently!

 

[Aswall]

I lease my cars through my company and put my private reg on each time and have never been asked to sign an agreement that the leasing company could keep my reg if I defaulted. In fact the ownership is transferred to them anyway and they then transfer it back, on payment of the appropriate fees at the end of the lease. My number will go on my new car in about 4 weeks time and the company are charging me an admin fee of £50 (this has varied in the past from nothing(!) to £95. The assignment fee has already been included in the amount paid to take it off the last car.

 

[Dryce]

Agree this seems like a steal if you are in the market of this type of car. I think it would be very difficult to even buy such a car at a couple of years old, run it for 3 years then sell on without it costing significantly more than this. Plus you are getting a shiny brand new car!

Assuming the car mentioned is an *auto* then that's basically £3600/year + £1500 deposit. Or £12300 for three years.

A 1 year used auto model is probably available at about £22500.

So the £12300 isn't far off 1 year's depreciation.

Running that used car for three years and it would have to be worth over £10K to match the deal on the new car.

(Caveat: MB have previous on offering very good deals on W204 which turn out to be manual).

[ Edit: £22500 is for a 220 so will probably be pessimistically for 250 ]

 

[gIzzE]

When I was looking for my first house in 1990 a new 325i was just under £20k, our house was £38k.
So over half the price of a house in a nice area.

Today a 325i is just over £25k and those same houses are selling for around £160k.


Cars these days are very, very cheap.
The fact you can then hire a £33,000 car for £300 a month with less than £2k deposit makes them pocket money for many.

Someone who is 20 and working full time at McDonalds earning around £15k a year could probably just about afford a brand new Mercedes at those prices, if that was their passion, you couldn't say that in 1989!!

 

[davethemus]

When I was looking for my first house in 1990 a new 325i was just under £20k, our house was £38k.
So over half the price of a house in a nice area.

Today a 325i is just over £25k and those same houses are selling for around £160k.


Cars these days are very, very cheap.
The fact you can then hire a £33,000 car for £300 a month with less than £2k deposit makes them pocket money for many.

Someone who is 20 and working full time at McDonalds earning around £15k a year could probably just about afford a brand new Mercedes at those prices, if that was their passion, you couldn't say that in 1989!!

that's something i've thought about a few times.

when i was a bairn if i saw someone driving a 316i E30 i would stop and stare cause it was very rare.

 

[jonm]

Ive leased a couple and would gladly do so again. For me, it boils down to maths and often works out as long as you are not that bothered about the specific model, colour or toys. Oh, and as long as the 'but its not really mine' bit doesnt bother you that much.
I've never been able to make exact requirememts cost in, but going for whatever is available often does (and has). With saying that, the excess mileage charges can really hurt whch is something to watch out for, especially if your circumstances may change (how sure can anyone be that they wont?)