Lease cars....

[Stressballs]

Lots of people I know seem to drive around in high end cars which are disproportionate to their earnings and every few years they seem to be upgrading to an even bigger/better car. DP and I are car hunting at the moment and I mentioned to DP that I had always been rather intrigued as to how other people earning far less than us managed to afford these executive cars (when we are driving around in a modest little hatchback!) and DP was saying that barely anyone actually buys cars anywmore and they all lease them instead. Not sure where I’ve been but I had no idea!

Is it really that common now?! I’m struggling to see what the financial benefit is as surely since you never own the car it’s an endless cycle of monthly fees to be left with nothing at the end and having to do it all over again. Or perhaps it’s just for the staus of having a showy car. Am I missing something?!

But cars are so well built that they should run for years

Ha ha ha.

"Should"

People can spend their money how they like, but I'm very at the idea is that your ONLY choice is between lease = reliable or secondhand = unreliable.

My second hand Citroen was £1350 when I bought it at 10 years old. Coming up to 15 now, and I've had not had a single problem that cost more than a single month's lease payment for most people on here.

I think it's very unhelpful to say that sort of thing because people who do need a reliable car will have the impression reinforced that ONLY new cars are reliable, when that is in fact bollocks.

Oh thanks!

I sort of narrowed it to the Alhambra specifically because of the needs we have. I’m a childminder and need 7 full seats, plus a decent enough boot. Sliding doors I have currently and live so would like to keep them.

Budget £1500 deposit. (I think I’ll get £1800 for my current car)

And £300 monthly payments is absolute top. Preferably lower.

I could afford more but not sure I’d be willing to.

I’ve seen a year old one for £18,500. The biggest thing I hate is they all seem to be used as taxis so even second hand ones have huge miles on them. That’s why I’m drawn to leasing.

Thanks!

Used cars are sold on a PCP or PCH basis too.

Also, 384,000 cars are written off in the UK each year (one every 90 seconds) according to Direct Line. So there will always be a new car market.

New car market is slowing though. June 2018 new sales figures are 3.5% lower than June 2017 and it's 6.3% fewer for the year to date.

I also think people will be changing their diesel cars for hybrids and many diesel's which aren't really ready to be scrapped will end up being as people find there is no market for particularly older model diesels.

Even with a more buoyant second hand market there are always going to be people who want the current plate and the newest model and have the money to buy/lease them.

It used to be quite a thing to have a brand new car especially on the change of registration day, something to get excited about, new cars are so common now because of people renting them, that it somehow takes the shine off it.

I think it's very unhelpful to say that sort of thing because people who do need a reliable car will have the impression reinforced that ONLY new cars are reliable, when that is in fact bollocks.

It's also bollocks to pretend that every single car ever made will cost nothing more than a few service charges and the occasional new tyre.

For quite a lot of unlucky people, owning a car will be very expensive. That's why garages stay in business.

Some people don't want to have to plan for those expenses, and would rather just plan to have a predictable amount go out of their account each month. That's not a stupid decision to make.

I brought a new car because my old car was diesel so got money from scrappage which made it the same price as the second hand cars I was looking at. Unfortunately living in London and driving through what will be the ultra low emission zone to get out meant I had to be careful how old a car I got. I ended up leasing it it though rather buying it out right, and I'm glad I did as I found out I was pregnant a month afterwards so need the money to pay for maternity leave.

I don't think that people are saying that only new cars are reliable. What they're saying is that you may be unlucky if you buy a used car and find that it's a money pit.

For example, my BIL was moaning last weekend that it cost them £1100 to get their 5 year old Ford through it's service and MOT. That's £90 a month for a year (or 40% of my lease payment) for just one garage visit. I would personally rather have a fixed monthly outlay than the worry of my car costing me thousands to keep on the road each year. But, everyone has different needs.

as long as you're not 'sub-prime' !

I hear you on CM-ing Georgie - DH used to be one, and it's the reason we got our first lease car. At that time he was starting out and we couldn't afford to buy something decent upfront, didn't want to be transporting other people's kids in a banger...nightmare!

This petrol alhambra I linked upthread is well within that budget - total upfront payment is £910, monthly payments are £255. That's the S spec but you cam get the SE for a bit more.
leasing.com/independent-brokers/jet-vehicle-finance/seat/alhambra/317307233/

The diesel from Nationwide is pretty close to that -

This citroen (no slidey doors I'm afraid but otherwise a good option) - is £950 upfront then £250 pcm www.nationwidevehiclecontracts.co.uk/Citroen_Grand_C4_Picasso-1-6-bluehdi-flair-7-seat-82376.htm

If you don't give too many fucks about the look then the big ford transit tourneo 8 seater is hovering around budget too. Those things are massive, but we seriously considered one as DH was totally full so had 6 passengers plus a double buggy to cart around!

Also van based....
Fiat doblo 7 seater - initial payment of £893 (plus fee I think), payments of £298 www.selectcarleasing.co.uk/car-leasing/fiat/doblo/mpv/14_16v_easy_[family_pack]_5dr/67323-2015.html

Nissan Nv200 - initial payment £863 (plus fee ), monthly payment of £287 www.selectcarleasing.co.uk/car-leasing/nissan/nv200/mpv/15_dci_90_acenta_5dr_%CE%95_seat]/62955-2015.html

If the prices change on any of these, my prices are based on 3 months upfront, 36 month term and 8000 miles

That was based on a quick look, if any of these are close to interesting then a bit more hunting might bring up some slightly lower prices, variations on the spec and so on.

Georgie - here is one you might be interested in:

Alhambra 1.4 TSI S

This one is £835.56 (3 months) upfront followed by 35 monthly payments of £278.52 Car tax and delivery and roadside assistance is included but not servicing and tyres. This is for up to 8,000 miles per year.

It's the petrol, manual version.

Blimey! Thanks so much, off to have at look at those links (in between the crisis that we have at home of a trip to A and E tonight) 🙄

Thanks for linking to whatcar lease Yoga - I knew I was missing one of the big comparison sites I normally look at and could I think of the name, nope! Total brain fart, I'm blaming pregnancy!

Do those leases include insurance? People upthread suggested they did, which would make a huge difference to the value, but the links above don't say?

I suspect it can be quite good value if you have little savings but need a small reliable car to take up a job. If you've got a couple thousand savings to cover repairs, then buying a car that's 3 years old sounds like the way to go. We got one that was 5 years old last year, paying upfront (7 seater, been used as a cab on lease, then mostly a spare car not driven much for 2 years),which when I add MOT and insurance costs seems about the same as 3 years leasing above. So if it lasts us for say 6 years, we're laughing and saving a good 2k a year over leasing, but are driving a 10-year-old car by the end.
If those deals don't include insurance, then we'd be another 3k ahead, assuming insurance of £500 a year.

We have a pcp car. To be honest I think it's all a big con to make us change our cars frequently and as a result spend more overall.

Average people on average salaries driving so called luxury cars. It's insane.

It's another reflection of our instant gratification society. No one saves up for anything any more.

I live in a high earning household but the amount of our monthly commitments (car, mortgage etc etc) makes me sweat. And at the end of it we don't actually own anything.

I suspect the massive influx of brand new cars has also caused increased depreciation in second half d cars.

People are saying its only say £200 a month for a good reliable new car. But is it not that amount every month that you continue to lease. Whereas if you buy traditionally on 0% finance it is about £200 a month for 3 or 4 years then £0 a month for the next 10yrs until you have to start thinking about repairs v new car.

If you can afford it a month and you get 0% finance then why not?

It’s a mistake to think of a car as an asset. They depreciate. I do a lease/buy calculation every time i replace the car (i’m On a 3-year cycle) and leasing always works out cheaper than buying for me.

It’s £200 a month for ever really which is a huge amount for what is just an average car, a more high end one would be nearer £300 a month, it’s never ending for as long as you drive. 200 is £24k in 10 years, since when have fairly low paid people spent that much on cars

Totally agree pearls. Hate the preciousness over a car, and people who panic about a small dent that wouldn't affect MOT affecting its value. If it is reliable then it's all good.

Which is great if you can find a 0% deal and want to buy a

We have a car on finance. Had to put deposit down and is still £500 a month. Don’t think it’s cheap for us tbh. Better for us though than worrying about if the car is going to break down. I get through three like there’s no tomorrow. I don’t brag but I am proud we can afford the car.

Tyres not three!

A lot of people lease cars though because they can’t even afford to buy a fairly newish small car as they have no spare money so it’s either lease or buy an old banger. These are not the people that would generally buy a new car every 3 years, I think this is where the worry lies, not the people who earn more and could afford the buy new cars anyway, then leasing can be a good thing for them

I'm planning on getting a lease car januaryish time - I'm still learning to drive, so will get one once I pass my test.

For me, it makes sense because it includes insurance. As a new driver the quotes I was looking at were between £160 & £180 a month. But, through work, I can lease a car on a 'just add fuel' basis for as little as £192 a month.

My plan is to buy my own after the three years are up once I have some years of driving experience accumulated.