garethEds Posted January 11, 2016 Posted January 11, 2016 Opinion eeded. Mrs E and I are looking at leasing our second car. Does anyone here lease their car? I know there is the argument that you never own your car - but based on how much a car loses when it leaves the forecourt - does that arguement fall down? We have a T5 but our second car is a 2013 Fiesta - 3 door. We pay an amount to Ford each month on their Options scheme - but I can get a 5 door EcoSport on 2 year lease for less than I pay - with a new car every 2 years instead of 3 years. We are fickle about our cars and whilst neither of us are big car people (besides the T5 love) - we do like to change them and get bored easy. The lease car then get's changed every two years. The lease company pay the tax for two years but I have to service the car. I'm also limited to 10K miles a year. I do 7000 tops in the Fiesta but do not want to worry about driving limitations. In this day and age where subscription services seem to the norm (coffee, razors, music etc etc) - is a lease the way forward? Sorry for the post - just after opinion. Cheers all. 1
jamesreedersmith Posted January 11, 2016 Posted January 11, 2016 Leases are a wonderful thing if you only do limited mileage but watch out for for fees for excesss mileage, damagae etc as these can stack up if you are not careful.
PrimaryTech Posted January 11, 2016 Posted January 11, 2016 It depends on how much you want to spend on motoring over that 2 year period. Me and the missus have an E91 3 series estate and little Renault Modus that's 6 years old. In March our daughter will be 3 and as we won't need to pay the bulk of childcare then we're going to flog the modus and lease a brand new run around (Either a Clio or Dacia Stepway). We worked out that the depreciation over the 3 years of Modus ownership + doing all the maintenance and MOTs is equal to leasing a car for the same period. We don't travel great distances so mileage caps aren't an issue and don't need to carry a buggy in the boot so something small is fine.
difinity Posted January 11, 2016 Posted January 11, 2016 If I had the spare disposable and wanted a new vehicle I'd look to purchase a pre registered car. My friends wife has just purchased an Antara, 28 miles on the clock but with about 8k off the purchase price. 3 years servicing thrown in too. Subscription services are in the interests of the seller not the purchaser, just because more and more are going that way doesn't mean they are a good thing. Tax on an EcoSport will be next to nothing compared to service prices. My mum leased her car when she worked for the council, one of the benefits was that that it was picked up and dropped off when it was serviced and it came with full breakdown cover. There was also a spare car available when hers was off the road being serviced or fixed when her son crashed it (this was a council leasing scheme) so yours might be different and not come with the extras.
Davit2005 Posted January 12, 2016 Posted January 12, 2016 Just gone for a Personal Contract Hire there's no option to buy the car at the end but this suits me.Servicing is free, breakdown cover free, have paid for Maintenance (about £12 a month on top). Excess mileage is 12p/mile.
abillybob Posted January 12, 2016 Posted January 12, 2016 I suppose the other side of the argument is that I can do what the hell I want with my car and looking at the depreciation it's costing me no more per year than what it would be to lease (this includes MOT etc) the only downside I guess is that you have to have the money there to pay it off with. I'm quite the tinkerer and when it comes to my own car it would kill me inside if I want able to upgrade the stereo, speakers and put some funky lights in my footwells! But that's just me
edmokeski Posted January 12, 2016 Posted January 12, 2016 Typically what the dealer gets out of a lease is the depreciation plus a certain APR %. So you don't really save yourself that drive-off-the-lot depreciation hit on a new car by leasing. Otherwise the dealer would be losing money on the lease. If you want new, I'd suggest going with what @difinity suggests and buying pre-registered, as that's virtually new and has had (a good chunk of) the initial depreciation knocked off already. (I also agree that subscriptions often benefit companies much more than consumers.) Even better value would be to buy one that's 2-3yrs old and just come off someone else's lease. These are often sold certified used w/ warranties, etc., etc. The advantage of the lease is cash flow (if you can't pay cash, which most of us can't, and lease payments will be less than a loan since you're not paying off the full value of the car -- just the difference in value between new and when you're finished with it, plus, wild guess, ~10%) and hassle saved by not having to flog the car yourself afterwards. Also a lease might allow you to drive a more expensive car than otherwise, since you never have to front the bulk of the cash (either yourself or via loan). It's not really very different from leasing kit for your school - the basic economic model is the same be it cars or copiers. The best value in cars is to buy used and privately sell it on when you're done (or drive it 'till it's dead, but obviously that gets boring and the gadgets in a car go obsolete w/in a few years).
rich_tech Posted January 12, 2016 Posted January 12, 2016 Personal Car Leasing | Contract Hire And Leasing Thats the site my friend used to look at the lease on the car he got for his wife (a volkswagen UP they hired) Don't know if others are interested, but ill link it nonetheless
Joanne Posted January 12, 2016 Posted January 12, 2016 Both of our cars are on Hire Purchase agreements. They are great to have a fancy car you couldn't afford to buy. We are the same in regards to changing cars because of boredom! We will be handing back our VW Passat this year, hopefully issue free. I guess you'll have to watch this space
Patrick Posted January 12, 2016 Posted January 12, 2016 I have a Fiesta ST 2014 on hire purchase. But a big deposit down on it and my monthly payments are around £200 pm. In three years i own the car..roll on three years! Previous to this car i had the 1.0 turbo ecoboost engine thats in the ecosport. Whilst i haven't driven the ecosport the ecoboost engine is a beauty. Free road tax, decent fuel economy and good performance (125 bhp). Don't let the name fool you though, if MPG figure are all you want get a car with a tiny diesel engine. The ecoboost isn't as economical as you might think, i saw real world driving figures at around 45mpg. Not in the 60 something ford claim. JUst though i'd let you know.
jmak Posted January 12, 2016 Posted January 12, 2016 (edited) VW group have some good deals on leases at the minute - for some reason they seem to be a bit desperate to make sales! We've always bought somewhere between nearly new and ex-lease and then run cars till they die. Usually about 10 years/250k miles. That seemed to be about the point where something too expensive to be worth repairing broke. This time I've just signed a lease with the Skoda dealer - it's marginally more expensive, but there's not much in it compared to depreciation plus repairs. I increased the mileage limit to slightly more than I expect - it's cheaper to do this than paying the extra at the end. The contribution from VW UK is more than the interest we'll pay over the lease period. We need two cars as there's no public transport in our village - I think our plan will be to keep one nearly new - whether through finance or ex-demo and one banger - I.E. a couple of hundred quid for something with an MOT. Edit: the only time I've beaten that figure is when I bought my own company car at the end of my scheduled time with it. Not much chance of that in education, but if you know anyone who has a company car, it could be worth asking them - we were always given the opportunity to buy. Edited January 12, 2016 by jmak
Max_Power Posted January 12, 2016 Posted January 12, 2016 If you intend to drive both your own car and the leased car just double check your car insurance terms. Although most policies allow you to drive any car with the owners permission and be covered 3rd party a number of insurance companies policies exclude this if the car is leased, and you have to pay more. That was something that bugged me when we looked at leasing, insurance company wanted £100 more a year.
Joanne Posted January 12, 2016 Posted January 12, 2016 With a Hire Purchase, which is what most dealerships do, the car goes in your name, so you have the log book and whatnot, so no insurance issues there.
JoeBloggs Posted January 12, 2016 Posted January 12, 2016 Do you have to pay a large deposit when leasing? Also what is an average payment? I've always looked at it like... if I leased a car for £250pm over 2 years would be £6k + a deposit. You can buy a car for that amount which would last two years and have something to sell at the end?
Davit2005 Posted January 12, 2016 Posted January 12, 2016 On the Contact Hire I paid 6 X the monthly payments. @billybob Personally I've spent so much money modding cars It will be a good not being able to .
Joanne Posted January 12, 2016 Posted January 12, 2016 We put our old focus estate up as deposit (£1000) for the VW and I put my Focus CC up for my mini. You can get money back when you hand them in if they have retained more value than expected. This is mainly to try and get you to go for another car. Yes you could buy a car for 7k that would last more than 2 years. I don't have 7k though. Finance is the best way for me at the moment. I like new cars. I like high spec cars. For 7k I wouldn't get the car I really wanted. Infact the car I wanted had only come out in 2013, so there was no chance of me being able to pick one up for any less!!
JoeBloggs Posted January 12, 2016 Posted January 12, 2016 We put our old focus estate up as deposit (£1000) for the VW and I put my Focus CC up for my mini. You can get money back when you hand them in if they have retained more value than expected. This is mainly to try and get you to go for another car. Yes you could buy a car for 7k that would last more than 2 years. I don't have 7k though. Finance is the best way for me at the moment. I like new cars. I like high spec cars. For 7k I wouldn't get the car I really wanted. Infact the car I wanted had only come out in 2013, so there was no chance of me being able to pick one up for any less!! Yeah I meant if I got a loan for £7 over 2 years then the car is paid off and I then have an asset with a re-sale value at the end. But yes won't get a top spec car like you mentioned!
JoeBloggs Posted January 12, 2016 Posted January 12, 2016 I'm on the fence at the moment. I got a loan for my car which cost £7k, it's been paid off a while now so it's nice not having that payment. It's an 09 Focus and still going fine. But I get car envy so may upgrade, i just don't know which way to go. Get a personal loan and use my car as a deposit or lease and use my car as a deposit!
Joanne Posted January 12, 2016 Posted January 12, 2016 Yeah I meant if I got a loan for £7 over 2 years then the car is paid off and I then have an asset with a re-sale value at the end. But yes won't get a top spec car like you mentioned! True dat. I'm a car swapper is my problem! I understand that it costs a lot of money, but I'm willing to pay the price. Suppose no matter which way you do it it's going to cost. Best value for money way: buy used car which is newish. Run into ground.
Tesla Posted January 12, 2016 Posted January 12, 2016 I'm still happy with my 54 plate Clio, i cant justify to myself replacing it for the sake of it...(A/C, alloys, recent cam belt replacement, 50k miles) I do get tempted though.
zag Posted January 12, 2016 Posted January 12, 2016 As someone who sold his car 10 years ago and bought a house near the train station I think your all mad £200 a month to hire a car and that doesnt even include fuel, tax and insurance? That means I saved £24,000 over that time scale (probably double that with the extras!!) 2
witch Posted January 12, 2016 Posted January 12, 2016 Best value for money way: buy used car which is newish. Run into ground. That's what mrwITch does. But now, when his car is starting to fail (05 plate Pug 206) he refuses to change it as "I just spent £400 on a new...whatever" Can't get him to see that isn't gong to get any better, is it!
Davit2005 Posted January 12, 2016 Posted January 12, 2016 (edited) As someone who sold his car 10 years ago and bought a house near the train station I think your all mad £200 a month to hire a car and that doesnt even include fuel, tax and insurance? That means I saved £24,000 over that time scale (probably double that with the extras!!) To be honest the only reason I am getting a car is because the 20 mile (2 hour) commute by Public Transport is sooooo If I worked within 5 miles I'd walk, cycle or even run. I've done before many times for years on the trot without a car. Also being down the path of winter car repairs in dying light in the cold. Even swapped Carbs on my old range rover in the works car park years ago just so I could get home at the end of the day. Edited January 12, 2016 by Davit2005
Miscbrah Posted January 12, 2016 Posted January 12, 2016 Don't fancy just buying a pre-2000 heap of a thing and running/DIY-ing it until it dies? 1
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