Leasing cars

[Mackers123]

Hi all, just wanted your feedback on leasing cars, ive never done this before, is it better than buying second hand outright? Do you get in with cost the mot/repairs, is there anything else?

Can you recommend companies that do good deals?

Thanks

I wouldn't say that it's better than buying second hand, outright.

It's more expensive and it's less flexible. It might suit some people as an easy way to pay for things, but in the end whatever is included will be reflected in the price. Ultimately, if you get a new car, you will pay for the early depreciation, one way or another, which is why used cars are almost always the cheaper option.

I've leased loads of cars for my company car. You can get some packages which include servicing etc but they are not worth the money IMO. Leasing is great as you get a brand new car, so as a company car it's great. You get to change you car every 2-3 years depending on what lease you choose.
But one thing to remember is that you will never own the car - you will pay a monthly fee and deposit up front then it's delivered and taxed for you.
But again as I said you will never own the car if that's not important to you then you can get some great deals.
Just google cars for lease hire - they often do special offers on some cars.
I personally love leasing but I get paid back per mile from the company.

Www.leaseloco.com is good for looking at lease deals

I wouldn't do it.

Say you spend £200 a month leasing a car over four years. That's just under ten grand. At the end of that period you have to either stump up more money (£1000s usually) or walk away with nothing.

Alternatively you can get a bank loan for ten grand, pay it off over four years and then actually have a car at the end of it. I'd go second hand and a few years old from a reputable dealer every time over a brand new car that depreciates thousands in the first year that you just give back.

If you prefer the format of paying monthly for an expensive mobile than buying a second hand one outright it’s the same sort of principle

You know your monthly outgoings and are renting a new working car with no need for mot for the duration of the lease

Good if you need to budget and don’t have huge savings

If there was plenty of savings buying nearly new and outright is financially cheaper in the long run but once out of warranty there could always be some unexpected and pot rurally large bills so you alwyas need to make sure you have a safety pot of money just in case

If you buy outright and circumstances change you can always sell the car again

If you lease and your circumstances change you can still get out of the lease but often with expensive cancellation fees unless nearly at the end of the contract

Each time your lease comes to an end you need a few grand saved up to then pay the deposit on the next lease so it’s not as straight forward as £200 or £300 a month payments forever which is what you may typically get with a PCP type finance when you swap to new car rather than paying off the balloon

(and £200 a month is right at the end of the scale. You'll get a two door tiny car for that)

and £200 a month is right at the end of the scale. You'll get a two door tiny car for that

Not true. I could get an Audi A4 Avant for £188 per month over 2 years.

Alternatively you can get a bank loan for ten grand, pay it off over four years and then actually have a car at the end of it. I'd go second hand and a few years old from a reputable dealer every time over a brand new car that depreciates thousands in the first year that you just give back.

I did this, bought a 3 year old SUV £10k

The ignition needed replacing after 2yrs (1k) the 'bush' went -whatever that is 😆 - and was another £600, plus servicing, MOT and all new tyres ... plus the 2k interest on the bank loan meant when I sold it and got £4K four years later the bloody thing had actually cost me about £10. I lease now!!

Thanks ladies i think there are pros and cons for both sides. This was just a suggestion from other half, I've always purchased second hand outright, currently my car has cost a lot in repairs plus MOT and servicing on top but my previous car didn't.

I’ve just handed back my lease car after having it for two years. It was a nice car and hassle free but I really begrudged paying out over £200 every month for it. Instead I have now saved up some money and will buy a second hand car outright. I don’t do many miles so I’m hoping it will get me from A to B for the next year or two. I won’t have the same peace of mind but am hoping for the best! I may come back in six months to say I made a terrible mistake but hopefully not.

When I had a fair bit of disposable income and had to travel a lot for work I took on a car lease. It was great, I had a shiny new car to drive around in, no MOT to worry about, services were included in the price and some things were included in the warranty (obviously not damage you do yourself)- so it was less worry. Because it was brand new I didn't have to spend a penny on repairs or upkeep, and roadside recovery etc was also all included, so it was convinient. I actually ended up handing it back at the half way point though, which legally you can do for no financial loss, because I needed a bigger car. I think if you always want to lease so keep handing cars back at the end of the lease period and taking on a new one because you want a new one every few years then it's worth it. If you would be looking to lease and then buy it, probably cheaper in the long run to get a bank loan and pay outright; or buy a second hand car outright.

I always lease mine get a brand new one every 3 years and I also get a package in with mine at Volkswagen 3 years 3 servicing.
I love leasing can change every 3 years and no hassle. X