Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Young people are foolish for leading cars?

183 replies

Kitchendrama1 · 08/09/2021 13:19

£2k to get the car and 36 payments of £350 of which you get nothing at the end of 3 years. £14,600 with insurance included, for a car you won’t own for 3 years.

I can understand insurance is high for a young person, but it’s dumb?

OP posts:
DeepaBeesKit · 08/09/2021 20:59

I'm more in the camp of thinking anyone who like brand new cars & doesnt understand that anything where you don't pay the whole cost upfront has an interest or interest like element is not great at maths/lacks common sense.

Telegram · 08/09/2021 21:03

Comparing the value of lease deals to buying a new car is counter productive because they’re both profligate.

If anyone’s looking for actual value, buy a 3 yr old car with cash. Over 3 years of ownership you can sell it and will have paid a fraction of the cost of a new car or lease.

If you want warranty buy a Kia with 7 years which is transferable.

InFiveMins · 08/09/2021 21:04

I always lease and have had monthly repayments of more than £350 for years. But I like having a nice new car every 3 years and never have any trouble with maintenance. Works for me!

Original poster
Kitchendrama1 · 08/09/2021 21:05

@LegallyBronde

I drive on average 30k per year with my job so I lease. I get a generous car allowance, spend every penny of it and drive a lovely brand new car every 3 years. I put far too much mileage on vehicles to make owning one worthwhile. I get a lease and service package and only worry about what to get next time. Its bliss. Call me stupid if you want but it works for me.
You get money though
OP posts:
MoonbeamSprinkles · 08/09/2021 21:11

I'm more in the camp of thinking anyone who like brand new cars & doesnt understand that anything where you don't pay the whole cost upfront has an interest or interest like element is not great at maths/lacks common sense.

It works because you pay the depreciation of the value not the whole cost of the car and the car dealers get to sell it twice.

So say the car is worth 14k and in three years it’s worth 10k

They lease the car out to someone for the first three years for the value of the 4K (more likely slightly more).
Then they sell it after for 10k basically making a profit twice from the same car.

It works for the customers because the person who likes new cars gets to drive a brand new car for 4K or just over for spread over 3 years.
And then the people who like to spend 10k on a 3 year old car have a steady supply of three year old cars to choose from.

Win all round.

Original poster
Kitchendrama1 · 08/09/2021 21:13

@MoonbeamSprinkles

I'm more in the camp of thinking anyone who like brand new cars & doesnt understand that anything where you don't pay the whole cost upfront has an interest or interest like element is not great at maths/lacks common sense.

It works because you pay the depreciation of the value not the whole cost of the car and the car dealers get to sell it twice.

So say the car is worth 14k and in three years it’s worth 10k

They lease the car out to someone for the first three years for the value of the 4K (more likely slightly more).
Then they sell it after for 10k basically making a profit twice from the same car.

It works for the customers because the person who likes new cars gets to drive a brand new car for 4K or just over for spread over 3 years.
And then the people who like to spend 10k on a 3 year old car have a steady supply of three year old cars to choose from.

Win all round.

Which cars sell for 70% after a few years?
OP posts:
linerforlife · 08/09/2021 21:14

Because why would I want to own a rapidly depreciating asset? You know the old saying - if it drives, flies or fucks, lease it!

MoonbeamSprinkles · 08/09/2021 21:28

Which cars sell for 70% after a few years?

Most cars.
Hence why everyone always says to buy a car that’s a couple of years old rather than new.

And if a car depreciates less than that then that’s even more reason to lease it as you’ll get a better deal because you’re only paying what it goes down by.

funnelfanjo · 08/09/2021 21:35

@linerforlife

Because why would I want to own a rapidly depreciating asset? You know the old saying - if it drives, flies or fucks, lease it!
No, I’ve never heard that saying. It’s charming. Confused

But excepting property and antiques, you can’t expect anything you buy to appreciate in value. You buy something, you use it. When you don’t want it any more then you sell it if it’s worth something to someone else, whether that’s a car or phone or a boat or designer shoes. You’ll never get all your money back, but you had the use of it while you owned it.

BlaiseAnais · 08/09/2021 22:19

@Kitchendrama1

No deposit.

I negotiated hard, I bought in March. It was already in the forecourt as the person who had specd its finance fell through. They registered it with the new years plate so got a great car for minimal cost.

BlaiseAnais · 08/09/2021 22:23

@Kitchendrama1 forgot to say. I meant those figures are expensive. There are cheaper ways to lease cars that make it got value rather than implying you were lying.

slightlyworriedthissunday · 09/09/2021 06:04

You’d trade in a working car for the same reason you’d buy a new tv, phone or IPad if yours is working. People like to upgrade things and there’s nothing wrong with that.

You sound like such a snob OP!

I am no better with my (now) owned outright 6 year old car than the next person with their £350 lease. I’m no worse either. It’s just a choice.

DwangelaForever · 09/09/2021 06:13

Depreciation. I have only ever owned one car outright and it was an old banger, I am on my 3rd purchase hire car. It just makes more sense to me, I can get a new one every 3/4 years without worrying too much.

londonrach · 09/09/2021 07:05

I've a friend who leased her car ..it's cheaper than buying a car and her job needs her to drive alot. Your figure s are totally wrong. She careful ly worked it out. She's in her early 50s so not young

Passmeamenuatthetottenham · 09/09/2021 07:14

Urgh, the whole PCP thing is just another consumerist thing, where car companies have convinced people that you must have a new or nearly new car every 3 years and then go onto the next new shiny thing?

What's wrong with taking out a loan for a perfectly decent car that you can then drive for 10 years or so? I don't mean an old banger that has terrible emissions or is really unsafe but there are tonnes of really decent cars out there that aren't brand new.

The whole new car all the time thing is just so unsustainable.

Passmeamenuatthetottenham · 09/09/2021 07:16

You’d trade in a working car for the same reason you’d buy a new tv, phone or IPad if yours is working. People like to upgrade things and there’s nothing wrong with that.

There is quite a lot wrong with it actually when our planet is completely fucked and people are ripping through its resources because the phone they got last year is now 'old' and they want the latest one.

SofiaMichelle · 09/09/2021 07:28

There are a few posts in this thread which seem to be confusing 'leasing' with 'PCP'.

They are very different in all respects, other than there being a monthly payment.

Oh also, it's a bit of a myth that you can't buy the car at the end. When they take them back off you they are going to see them anyway

Many lease contracts are specifically written to exclude you ever being given the option to buy the car when the contract ends because there are VAT implications and other HMRC issues for the lease company.

Sometimes a friend or relative might be able to but the car but not the person with the original lease contract.

Not just a myth.

Charlieiscool · 09/09/2021 07:52

It was my priority to work and save towards buying my first home. A car was something that had to wait.

Themostwonderfultimeoftheyear · 09/09/2021 07:56

We lease. We did buy but it was an absolute money pit and so stressful. Never again.

We don't pay £350 though.

MoonbeamSprinkles · 09/09/2021 08:58

There is quite a lot wrong with it actually when our planet is completely fucked and people are ripping through its resources because the phone they got last year is now 'old' and they want the latest one.

I agree with you about phones but cars are a different matter. Cars are getting more and more environmentally friendly with every passing year so there is a big difference between cars being produced now and even three years ago.
Also after your lease is up the dealers don’t put the car in the bin they sell them on, most cars get driven into the ground even if they change ownership.
The demand for second hand cars is through the roof at the moment it’s insane.

MoonbeamSprinkles · 09/09/2021 08:59

Where do people think their steady supply of reliable cars that are a couple of years old that they are buying with their loans are coming from?
They are ex lease cars.

Ylvamoon · 09/09/2021 09:16

I agree with you about phones but cars are a different matter. Cars are getting more and more environmentally friendly with every passing year so there is a big difference between cars being produced now and even three years ago

See, I am not sure about this at all. Why is it better to produce something new when you can actually use what is already there?
I think if you buy a new car and have it for 12 years, that is better than having 4 new ones built in that time.
Yes, fuel consumption safety ect. will improve ... but what else actually does improve? What is the environmental impact of 4 new build cars v running an older car during this time?
Fact is, we need consume less.

MoonbeamSprinkles · 09/09/2021 09:37

See, I am not sure about this at all. Why is it better to produce something new when you can actually use what is already there?

Because there aren’t enough reliable cars to supply demand.
Hence why second hand car prices are insane at the moment.

I just tried to buy a second hand car and no matter how I looked at it it didn’t make sense.
The second hand version of the car I wanted was 12k and the brand new version was 14k and I would only have to pay off the depreciation.
The second hand version went in a shot because new cars are taking ages to come off the factory lines and also lots of people prefer owning outright.

If there was loads of reliable second hand cars just lying around I would agree with you but it’s a sellers market at the moment.

Original poster
Kitchendrama1 · 09/09/2021 09:39

@MoonbeamSprinkles

See, I am not sure about this at all. Why is it better to produce something new when you can actually use what is already there?

Because there aren’t enough reliable cars to supply demand.
Hence why second hand car prices are insane at the moment.

I just tried to buy a second hand car and no matter how I looked at it it didn’t make sense.
The second hand version of the car I wanted was 12k and the brand new version was 14k and I would only have to pay off the depreciation.
The second hand version went in a shot because new cars are taking ages to come off the factory lines and also lots of people prefer owning outright.

If there was loads of reliable second hand cars just lying around I would agree with you but it’s a sellers market at the moment.

Unreliable cars? Cars are the most reliable they’ve ever been
OP posts:
MoonbeamSprinkles · 09/09/2021 09:43

Unreliable cars? Cars are the most reliable they’ve ever been

Yes unreliable.
Cars may be the most reliable they’ve ever been but that doesn’t guarantee a four year old car won’t need work doing to it.
That’s why you have to have a yearly MOT after three years.