Need advise on purchasing please

[camerontyler]

Hello everyone, I am desperate for advise!

My fathers ML's lease is about to expire at the start of November.
He has dogs and is a golfer so an estate is required.
He has had his mind set on an X-Type Jag estate for weeks, unfortunately I threw a spanner in the works and suggested for the amount of money he was going to throw at the Jag (Mondeo in a skirt) he'd be aswell getting an E-class Estate (he refuses to consider a C Class).

He is currently looking at the relatively basic 220CDI BLUEefficiency SE and taking it on lease.

I have been trying to persuade him to buy a low mileage second hand E-Class which will still have a healthy resale value in 3 years instead of taking on a 3 year lease and having nothing to show for it at the end.

In my oppinion it makes no sense whatsoever seeing as the moneys coming straight out his pocket either way as he retired early.

There is an E-Class Estate currently on autotrader that would be perfect for him. It's a 2007, only done 15k, is a 220CDI Avantgarde and is £17k.
If he was to sell it on in 3 years with 45-50k on the clock I'd imagine it would go for 12-14k going by todays market.

If he was to take on the new E-Class he would be paying £19k (mercfinance) over 3 years with a 10kpa limit and be left with nothing; again.

Is it just me or does it make no financial sense to take on the lease?

Please feel free to prove me wrong as it will stop me pulling my hair out!

All opinions welcome.

Thank you.

 

[GP801]

I think the leasing route only works if he can put it through a company and reclaim the VAT and maybe the lease cost as a business expense. A simple lease doesnt really make sense as a private individual.

 

[bobbersmill]

It basically makes no financial sense to buy new period! If he were to buy the car outright (the new one) he would maybe loose 15-20k in depreciation. The toss up for him is does he really want new and will the lease route just be a substitute for funding depreciation he would have suffered anyway in 3 years over a 3 years period? You cant really compare leasing a new car with buyin a second hand car as the second hand car will always make better financial sense.

 

[Chrishazle]

I also retired early - but gave up buying brand new cars decades ago - as has been said above, it makes absolutely no financial sense to take the depreciation hit when you can get a perfectly good 2 (or more) year old car where some other poor sod has taken the hit! OK, I had new cars on lease or purchase years ago - but I had a company to put them through, so the maths was different.

I think the OP is absolutely correct - but how many sons have ever been able to convince their father that Dad is wrong and "his little boy" is right!

 

[Deleted member 6183]

Are MB sill offering 2 year warranty on used sales?

If so a 3 year old would be an attractive option, flog it on at 5 year old and have a decent warrenty during ownership.

I've not checked if the 2 year warranty is tier 1, if so then it's top class.

 

[st4]

The lease car is split new. The second car is the older model.

I like my 211's, and again the one you found is perfect and for the money the obvious choice. Its still new and low enough miles for it not to be an expensive or timely maintanence proposition and give him years of fun, safe, practical service.

However the lure of the new model and nicer to drive car may be too much. He does have something to show for the lease payments, 30k miles in a split new E class.

However, I'd buy the used motor.