Do you own or lease your cars?

[Turkeycondundrum]

We currently own two cars. Both bought second hand with cash when we had some spare. They are not fancy cars, one is 4 years old, one is just over 10. We want to replace the older car, it's got high running and maintenance costs and we need something bigger as we now have two growing kids. So, we want to trade it in and get an estate. This time round, we have no spare cash and don't want to deplete our savings.

My DH is desperate for a 'nice' car and has worked out that we can afford to lease a fairly decent car. So we pay a monthly fee and then after 3 years, we just hand the car back and get another one.

I think we would be better off buying a decent second hand car on finance. But the monthly repayments are higher and the car isn't so nice. But at the end of it, we at least have an asset to our name.

DH is convinced lots of people lease their cars - and why their cars are much fancier than ours. I'm not sure he's right!

So anyway, long story short, do you own your car/s or lease?

[PersonaNonGarter]

Own - thank god as we trash cars and it would be another thing to worry about.

However, when the DC are a bit more responsible we will probably just lease.

[coffeeforone]

Own, got it new and took 0% finance for 2 years (this paid off 40% at £450 a month for 24 months) then used a 30 month interest free credit card and some cash to pay off the remaining 60%. So effectively all interest free finance, but without the inflated price to account for this as dealer gave a decent initial discount and in return would expect a trade in/new deal at 24 months.

[GinisLife]

Contract hire. I get bored easily so would always change my car so would always be paying out every month so what's the point in buying ?

[notanothernam]

Lease, a car is not a house, it isn't an investment, it depreciates. I'd rather pay out a set amount I know each month for a nice car and not worry about something going wrong.

[Japanesejazz]

I own one and lease one
The leased car gets thrashed because I don’t own it and if anything goes wrong with it it’s covered by the warranty. Use it for work mostly, minimum of 350 miles a week. The one I own tootles about at weekends towing a horse trailer and will probably outlive me, I do use it for work if the weather is bad.

[Turkeycondundrum]

Our yearly mileage isn't high, we have short commutes. So certainly wouldn't be running a car into the ground.

We could buy new and pay under £200 a month for the car we want on a 0% deal from the main dealer. But then after 3 years we would still need to pay the final payment of 10k. So overall it's a really costly option, but initially a cheap one.

[Youmadorwhat]

Own outright. I have a car and DH has a van both 2008 reg bought second hand. I’m not a “fancy car” person.

[SpanielEars070]

Both of ours are leased.

We get a brand new car every 3 years, and during that time, you pay for one service at 2 years and replace the tyres. Everything is covered under warranty. And you can cover all of these with a service plan.

I don't get how anyone would buy a car in this day and age.... what a senseless waste of money. All you pay on a 3 year lease is the car depreciation, which you'd lose anyway. I've got a Mini Cooper S and DH has got a RR Evoque. We both love them, but can't wait to choose the next ones.

[Furrycushion]

Lease for our "better" car. We scour UK hot deals for good deals & have usually got deals that work out as much less than the depreciation would be.
Most of the flashy Chelsea tractor type cars you see are on PCP deals which is different. I used to wonder how so many people had cars we could never afford. PCP is how.

[SassitudeandSparkle]

We own our cars and have never leased. One of my sisters does, she travels a bit for work and does it through them - she likes having someone else responsible for the servicing etc.

[Needcoffeeimmediatley]

Lease

I got sick of forking out for costly repairs on cars previously owned.

[pinkandstripey]

Lease.

A car is not an asset, it will never appreciate in value. It's about managing the financial liability of driving a car in the most palatable way possible to you.

Cost your finance options. Bank loan v finance from car company v savings v part ex etc etc.

Leasing means your you pay to cover the depreciation value only (c.55% of new car value) rather than pay 100% and recoup 45% when you sell it.

PCP is a massive scam. Cost it against leasing, legally it's pretty much the same thing. You don't own the car, the finance company do. You have restricted miles. You have to get the car serviced in the method they specify. Except PCP requires several k more upfront, and higher monthly payment!!!

[MadameJosephine]

I lease mine through a salary sacrifice scheme at work (nhs). The payment includes servicing, insurance, tyres, breakdown cover the lot. All I pay for is fuel and because it’s electric I plug it in at work to charge anyway the cost of which is included in my staff parking permit. Overall it costs me less than the running costs of my previous car which I owned outright but was 9 years old. There’s no way i could afford to buy such a nice car brand new and I get to change it every 3 years.

[notdaddycool]

Ours does about 3500 miles a year there’s no way I’d pay to lease. I don’t need something amazing just something not shit. I have that. If I was zooming up and down motorways every day I might feel different. Still my natural inclination is to have the minimum possible monthly outgoings committed in advance, you don’t know what life will throw at you.

[Turkeycondundrum]

pinkandstripey that was a great post. Thank you.

So leasing is essentially the same 'cost' as buying the car and selling it three years later?

[Longdistance]

I own mine. Don’t think I could face wasting all that money on a pcp and not own it after 3 years, but on average I keep my cars for about 7 years. They all end up with below average mileage.

My dB has one on pcp. Don’t think he’ll do that again.

If you think about it, a car gets loaned out for 3 years, a deposit has also been paid, the lease comes up and you take up another lease. The car you’ve just given up goes on the forecourt and is leased again but for a higher % loan to the next owner who again won’t own it. You should work out how much one car would make a dealership, it’s shocking.

#iwasntbornyesterday

[Turkeycondundrum]

In terms of outgoings and risk of loosing jobs etc, we are fairly secure and have enough in savings to get us by if need be. That is exactly why we don't want to use our savings all up now though.

[Megan2018]

DH has company car. Mine was leased but got the chance to buy it at the end below market value so I have.
But will sell within a year and lease the next.

I do 15k miles annually and drive electric cars as is mist economic commute for me. The lease plys charging is way cheaper than old 2nd hand, maintenance, tax and fuel. So no brainer here!

[animaniac]

Lease. I have no interest in owning a car- it will only ever cost you money (depreciation, repairs etc). Just have to get your mileage right from the start as excess mileage charges are extortionate.

[Wakk]

What's a PCP and can anyone recommend a good company to lease from?

I'm worried about having to pay a fortune st the end for minor scratches etc.

[PortiaCastis]

Own, Vauxhall Vivaro bought with a small business loan, a 7 year old focus bought second hand and dd has a citroen which my Mum bought her.

[DontCallMeCharlotte]

Own.

Just buying a new car with £2000 off for scrappage on my very old car which was worth buttons.

Depreciation is irrelevant to me because I'm not going to be selling it.

[Sassy306]

Lease. New car evey 3 years. No car bills and most up to date safety wise. Cars lose far too much value to be owning one these days.

Just make sure you pick a plan within your expected mileage and take out gap insurance in case you have an accident and the normal insurance doesnt cover the outstanding finance. also if you have children in car seats make sure your chosen new car is compatabile with your existing car seats

[Gentlemanwiththistledownhair]

Own a 9 year old BMW and have done for about 5 years. We've looked at upgrading and buying/leasing/pcp-ing a new car (less prestigious brand), but keeping my car still works out way cheaper.

Beyond the usual tax, insurance etc costs, we change the oil religiously every 10000 miles and upgrade known problem areas of the car when parts are probably coming to the end of their life (but not yet broken). For example, this year we have replaced the water pump, auxiliary belt and coolant because they seem to have a tendency to fail at this point in the model's life. Cost less than £500. That's just over 2 months lease payments on a new car and the only work I should need to do on it this year.

If leasing / PCP didn't make manufacturers and dealers so much money, they wouldn't offer it

[UterusUterusGhali]

I own because I tend to ding the shit out of cars.

I do a lot of miles on single track roads so all my cars have scrapes up the passenger side from having to squeeze into a bush.

I could lease through work but it counts as "income" so you get lower tax credits, weirdly.

That's just me tho. Leasing sounds like it'd work for lots of people.