To buy or to lease a car?

[juneau]

My car is due to be replaced and DH and I are debating whether to buy or lease. The costs (worked out on the back of an envelope), are roughly the same over a 3-year time period, so can anyone offer any advice based on their experiences?

DH says if we lease I have to make sure I don't get any scratches or marks on it, which in our town is going to be challenging as roads are narrow, parking at a premium, and bumps and scratches are a fact of life.

Pluses and minuses for each. If you really have to have a brand new car, leasing is probably the cheaper way to do it. It does mean you have to give the car back at the agreed time, there's no option (at least, not without penalty) to hand it back early or keep it longer. So after the e.g. 2 or 3 years, you give it back and get another car somehow, either another lease or buy.

If you're not choosy about the car you have, look for the deals the leasing companies throw out there - this is the most cost effective option. Be aware that as soon as you start adding options, it starts getting expensive; deals may come with base equipment, few extras (depends on what is standard for that trim level), and usually quoted the cheapest colour option. If you go for options that are, say, £2500, you usually pay that whole £2500 over the life of the lease.

If you want a bit more flexibility, PCP is a good option - new car, a bit easier to get rid if circumstances change, and you can pay the balloon payment at the end and keep it.

If you're not concerned with having a brand new car, buy something a couple of years old and save the depreciation. PCP deals don't tend to be as competitive on used cars so bank loan or cash is usually the most cost effective.

What sort of budget/cars are you looking for?

We're looking at the Audi A6 and I really like the garnet red colour, which sounds like it will be a special colour! Having said that, I'd be happy with the graphite too and I don't want any additional extras. When you get an Audi, as opposed to something cheaper, the standard version seems to come with all the stuff any normal person would want.

Don't lease an Audi if there is any chance that it'll get scratched. The costs for scratches and dings are ASTRONOMICAL. So are repair costs.

Right - that's good to know! Thank you