Would you lease a car?

[Orangeinmybluelightcup]

Just can't decide which way to go on this! Leasing a car for 4yrs, very affordable monthly payments, brand new car, nothing to do so no hassle, but nothing to show for it at the end. Vs buying a second hand car, which is £10k more, responsible for MOT, servicing, anything that goes wrong, bit you own it.

I suppose I feel that leasing is dead money but am tempted by the lower costs.

I felt the same about leasing - dead money. After 20odd years of buying 2nd hand cars, though, I came to the conclusion that all money spent on cars is dead money. You're never going to make money with them. I figured out I could drive a nice new lease car for the same average cost of buying/maintaining a bought car. So now I lease. My current car costs about £150pm and I figure that's probably less than I used to spend on buying a car outright and then paying all the maintenance costs. And I'd never have been able to afford the car I've got buying it new.

Why electric? Is it for the environment?

The amount of energy and new virgin materials that go into getting a new car every three/four years should be considered. The environmental burden from just the battery manufacture for an electric car is massive and it can only be offset (vs petrol) if it has a longish life. Consumers are assuming other people will step in and buy their old car but we don’t know what will happen. Like sending out plastic and landfill abroad and looking the other way.

Based on how my car gets scrapes and scratches that I don't even know how they get there no I don't think I could lease.

I am considering a lease if I replace my 10 year old car with an electric one. If I go for a petrol one, I will buy an 18month or so petrol/

My neighbour used to lease her cats years ago. She found it great. I would worry all the time about scratches and damage.

Cars!!

@BreakingtheIce

Cars!!

I quite like the idea of leasing a cat! In fact, I already do, with so many feline visitors.

I had a hybrid electric car the other day when my car was serviced at a main dealer. I loved and coincidentally, the Money Programme was on the radio as I was driving it, discussing pros and cons and leasing options. I did find myself doing to mental arithmetic, but also feel as though there is an environmental trade off.
Oh, this one was also automatic, which I have not driven for a looooong time. After my initial worries, I did feel that I had definitely levelled up for the afternoon.

My car was ebing looked at again today at a KwikFit (for the aircon), and was in a bay next to a Tesla sigh

I lease cats and you don't have to pay anything except food. There's no payments and vet treatment is paid by the rescue that I foster for.

When they get adopted the rescue provides new ones, sometimes just about brand new or sometimes you have to wait for them to be ready as they arrive still inside their pregnant mum.

On the matter of cars anyone concerned about condition on return should look at the BVLRA fair wear and tear guide. A lot of minor dings, chips and scratches aren't chargeable as it's fair wear and tear.

I sent back a PCP that was quite tatty. Couple of door dings and scrapes on the bumper including a deep vertical scrap where I reversed it into the corner of a wall. Assessor said just about all of it was fair wear and tear that would polish out and I got a bill for about £60 which I thought was more than fair.

I’ve leased cars for the last 15 years. My current one is the most expensive and if I’d paid that all the way through I’d have spent about £36k. The initial cars were half the price so it’s probably a lot less. I’ve never had to pay a fee when I’ve given a car back and aside from one that was immaculate they’ve all had a couple of scratches etc.

For me, £2400 per year is value for money when I need my car for work. It’s about the same price as the annual train ticket would be and I’d have nothing to show for that either. At least the car is more convenient, especially now I have a nursery run to do on my way to and from work each day. Yes I could buy cheaper cars outright but I like driving newer cars.

I can easily afford the repayments and I always take GAP insurance out in case anything happens to the car.

How old is the second hand car you’re looking at?

I think it depends. I used to lease when I was doing a load of miles for work and needed a very reliable car, and wanted a comfortable one that was enjoyable to drive. Leasing was perfect as for a reasonable monthly sum always had a new car that didn't need an MOT, servicing was included, and then I swapped for another new one. Now I don't do as much driving though it wouldn't be as worthwhile, I have a secondhand car for a few grand and its fine.

If you can comfortably afford the repayments, fancy constantly driving new cars then I would recommend it.

I love car leasing, I always lease. I just don't want all the hassle and worry about owning a car. It's also a cheaper way to get a new car, I couldn't afford to buy at all.
My previous car was beautiful, large top of the range and brand new, I could have never have afforded to own a car like that but with leasing it was easy.

These days I have a small run-around, nothing special but again it was brand new and so very unlikely to have have major breakdown problems. And if it does the lease company sorts it out. I pay a bit extra for a fully-maintained contract, so all tyres, servicing etc. is done for free, I just ring a number and they sort it all out. They even come to collect and deliver back if I ask.

At the end of the contract I don't worry about selling the car or what to do with it, it just goes back. If I want to carry on leasing I just get another brand new car. What could be simpler? They even sort out the car tax etc.

I can't understand all this talk about paying for something you don't own, you pay for the service and convenience of having transport, it's a really good system.

If you are concerned about scratches etc then it's worth asking the leasing company for a copy of the guide they use to judge if a scratch is chargeable, and their charge guide. That way you'll have an idea whether any scratches are worth fixing during the lease.

We lease because we are not car people and just want to know exactly how much it will cost. This way you don't have any repair or service fees, no worry about MOTs, everything is sorted out.

I like having one which can deal with up to date features on car seats, top tether etc which not all older cars have. I also like the fact newer cars have vastly better safety ratings if we were involved in an accident. DH likes the security of features such as emergency brake assist and the convenience/comfort of cruise control etc, and these are better and work more smoothly in newer cars.

Cars depreciate in value anyway, so although you will stop paying and own a car outright at some point, you will still have to replace it eventually and in the meantime deal with any repairs etc that it needs.

The only thing that makes me nervous is if we suddenly had a change of circumstances (extra child, international move) and had to try and end the lease early but TBH, we found it was just as complicated to try and sell our last car before the loan term was up, so we ended up waiting until the loan was up and then trading it in to pay the balance of the loan and get a lease.

My husband runs a lease car business. We have friends often come to us for advice, some chose to lease, others want to buy outright. There are pluses and minuses to both.
As regards return standards, as long as you look after your car reasonably well you will be fine. I am sure there are overly zealous inspectors out there when the vehicle is returned, but equally you can people looking for faults when you come to trade in a car you've bought outright further down the line.
Personally I prefer a new leased car as there are no hidden costs and you know repairs are taken care of.
As I say, there and pros and cons to both approaches, and people with have had great and terrible experiences of them both too. Sorry, it probably doesn't help make a decision though. Why don't you look and see what deals are available (these can change throughout the year depending on supply etc etc). Also make sure you compare as there can be significant variation in price, for various reasons

Buying a brand new car is madness , why would you want to own a depreciating asset ?
I have leased over the years as well as run older cars
With leasing you are fixing your costs so no unexpected bills and also get a manufacturer warranty and a brand new car
To buy the equivalent I cannot understand why

Or Run round in a cheaper car and hope you don’t get a big repair bill at some point

I also found it was incredibly stressful and confusing to deal with trying to sell the car. Nobody would tell you upfront what they would pay for it. Or they'd lure you in with some ludicrous figure and then when they see it, mysteriously it would drop by 30-50% even though the car was in almost perfect condition (no dents, well cared for, no smokers, one small scratch). Again, maybe it's fine if you know about cars and are confident to argue, or know what to expect in the first place and what a good/unrealistic price is, but we didn't have a clue which was probably obvious to everyone we tried to deal with which may have meant they were ripping us off. It felt nasty, like we were being ripped off, anyway.

The amount we lost in value over the life of that car was about equivalent to what it would have cost to lease it for the same amount of time. So we decided just to go with leasing in the first place and skip all of that hassle. Psychologically the experience was much nicer as well! I know in reality it's just sales talk, and they tell everyone "this is the last of this amazing offer!" etc, but we left with the impression we'd got a really great deal, rather than leaving with that nasty have we just been scammed kind of feeling. And still love the car a year later.

You need to look at the miles included (there's hefty penalties for doing more), damage charges (kids and a dog are likely to do damage), etc. Check what actually included, often you have to pay for servicing at the dealer. We are looking at a Renault Zoë as a second car, and it's not simple to work out

YY I think if you're going to buy outright it doesn't make sense to go for a new one. But TBH even used cars seem to drop in value something ridiculous so unless you're buying cash it does seem to work out about the same amount of money for something much less good.

I hate leasing but I wouldn’t purchase an electric car. The tech is still developing fast, and older ones will become virtually worthless when the newer tech comes in.

I lease these days and I'd never go back. The last car I owned ended up costing a fortune in repairs etc and on two occasions broke down miles from home with my young dc in the car. Leasing is way less stressful.

I lease, and have done for about 9 years now.

I love that I have a reliable car, and I don't have to worry about repairs.
I've scratched my car's to buggery as well, and the lease company just balanced it against the car I got. Twas all fine.

The age of the second hand car I could afford would most likely mean that I would be worrying about repairs. I hate that. Tis just me on my own, no family around. Knowing my car is sorted is such a relief!

No. Wouldn’t. I’d rather buy a cheaper car/ get a loan and pay it off, so I was at least mine at the end.

I like to not have to worry too much about keeping my car immaculate, that would be more stressful to me than the cost of repairs, mots etc.

Me & dh always had old bangers but we owned them never finance . Dh got fed up of spending ££ on getting it through mot every year and needed something reliable for work . So he leased one it’s all covered in one payment , tax , insurance, service repairs etc . A couple of years later I did the same . We don’t own them but it’s convenient and to be honest what I used to pay out in tax , insurance , repairs, mot , service etc probably not much difference and I don’t need to worry .
I honestly would never get finance for a car as most people trade it in after it’s paid off so never really own it anyway . For lease if you want the convenience of not worrying about repairs and you get a new car do it , for me I’d always lease now .

@BertieBotts

I also found it was incredibly stressful and confusing to deal with trying to sell the car. Nobody would tell you upfront what they would pay for it. Or they'd lure you in with some ludicrous figure and then when they see it, mysteriously it would drop by 30-50% even though the car was in almost perfect condition (no dents, well cared for, no smokers, one small scratch). Again, maybe it's fine if you know about cars and are confident to argue, or know what to expect in the first place and what a good/unrealistic price is, but we didn't have a clue which was probably obvious to everyone we tried to deal with which may have meant they were ripping us off. It felt nasty, like we were being ripped off, anyway.

The amount we lost in value over the life of that car was about equivalent to what it would have cost to lease it for the same amount of time. So we decided just to go with leasing in the first place and skip all of that hassle. Psychologically the experience was much nicer as well! I know in reality it's just sales talk, and they tell everyone "this is the last of this amazing offer!" etc, but we left with the impression we'd got a really great deal, rather than leaving with that nasty have we just been scammed kind of feeling. And still love the car a year later.

Exactly. Another thing that doesn't get mentioned enough when buying and selling cars in the second hand market is the hassle and dealing with chancers. Many people would pay extra to free themselves from that nonsense.