Reply to: Jaguar XF

[AtW]

Told you I was no good at 'Scrabble'.

Yes, I bought Monopoly today. Only waiting to change pounds to euros in it.

[zara_backdog]

It's okay - I forgive you.

Told you I was no good at 'Scrabble'.

[AtW]

Sorry

It's okay - I forgive you.

[zara_backdog]

its
cheaper
Focus

Sorry

[AtW]

Maybe, but mine drives better than a Mondeo but still does a decent MPG for it's size ( average about 45 MPG) and the insurance was cheeper than the Focas C-Max I had.

its
cheaper
Focus

[zara_backdog]

Jaguars are based on Ford Mondeo platform. Allegedly.

Maybe, but mine drives better than a Mondeo but still does a decent MPG for it's size ( average about 45 MPG) and the insurance was cheeper than the Focas C-Max I had.

[AtW]

Who wants to drive around in a fcuking mondeo or mazda 3 ffs?

Jaguars are based on Ford Mondeo platform. Allegedly.

[BolshieBastard]

Who wants to drive around in a fcuking mondeo or mazda 3 ffs?

OK if you're darn sarf you may have to because your housing and living costs are sooooooooooooooo expensive.

Oop 'ere in t'norf we can afford to spend our money on luxuries, if we wish.

[Tensai]

Of course if you plan to keep the car longer than 3 years then this is a moot arument, you are better off buying a nearly new car anyway!

... particularly now. Just bought Mrs T a 1-year old Mazda 3, low mileage, £7.5K incl tax and 1st year's service labour. List price new is about £12K! Dealer has pretty much abandoned trying to sell new cars and concentrating on the used market, that's all buyers will touch at the moment apparently.

[Bagpuss]

Contract hire can often work out cheaper than buying the same car.

Depends on the car and the price you pay for the hire, room to haggle with everyone these days.

Basic rule of thumb is make sure you don't pay more than 50% of list price for the car over the lease period and you will come out of it better off (or at worst no worse off) than buying the same car. (this only works if you cannot get at least 10-15% off the list price if you were to buy the car, eg any good car like the Mini, BMW, Mercs etc)

eg:

Mini Cooper D: £14685 OTR price
Leasable for £200 pcm 3+35 (including service/maintenance)
Interest loss on reducing capital approx £500

Cost to lease = £8100

Cost to buy = 14685 minus residual after 3 years.
at 60% retained thats still 14685 - £5874
Interest lost on 14685 at 4% over 3 years = £1833
Service and Maintenance over 3 years approx £500 total

Total cost of ownership assuming sold after 3 years for 60% OTR price:
£8207 (assuming car purchased 100% cash in the outset)

This is on the generous assumption that your car retains 60% of its value AND you only earn 4% interest on your capital! And you have the benefit of cashflow with leasing, and no effort required in selling the car after 3 years.

Of course if you plan to keep the car longer than 3 years then this is a moot arument, you are better off buying a nearly new car anyway! Also if you dont have the capital up front for a car then finance costs kick in, which is gonna skew the figures even mroe in favour of leasing.

Sounds good until you realise the £200 a month excludes VAT and the interest lost at 4% hasn't had tax deducted i.e. in this example leasing is still worse

[Solidec]

Contract hire can often work out cheaper than buying the same car.

Depends on the car and the price you pay for the hire, room to haggle with everyone these days.

Basic rule of thumb is make sure you don't pay more than 50% of list price for the car over the lease period and you will come out of it better off (or at worst no worse off) than buying the same car. (this only works if you cannot get at least 10-15% off the list price if you were to buy the car, eg any good car like the Mini, BMW, Mercs etc)

eg:

Mini Cooper D: £14685 OTR price
Leasable for £200 pcm 3+35 (including service/maintenance)
Interest loss on reducing capital approx £500

Cost to lease = £8100

Cost to buy = 14685 minus residual after 3 years.
at 60% retained thats still 14685 - £5874
Interest lost on 14685 at 4% over 3 years = £1833
Service and Maintenance over 3 years approx £500 total

Total cost of ownership assuming sold after 3 years for 60% OTR price:
£8207 (assuming car purchased 100% cash in the outset)

This is on the generous assumption that your car retains 60% of its value AND you only earn 4% interest on your capital! And you have the benefit of cashflow with leasing, and no effort required in selling the car after 3 years.

Of course if you plan to keep the car longer than 3 years then this is a moot arument, you are better off buying a nearly new car anyway! Also if you dont have the capital up front for a car then finance costs kick in, which is gonna skew the figures even mroe in favour of leasing.

[London75]

The lease companies have to make a profit, like you say selling second hand cars is hard at the moment so depreciation is high.

True but the lease company will be getting that jag for 30k rather than 37 in this climate so after the 24k payments, they get everything over the 6k balance as profit. That seems more than they would normally take. I've worked for a large UK leasing reseller so know a few of the calcs they use.

Maybe they expect Jaguar to completely fail rendering jags worthless in the next 3 years.

There are some bargains like a Dodge Avenger, (ignoring relative qualities of the car) £190 per month on a 2 year deal for a 17k car. Total paid is 4.9k over 2 years but there is sod all chance of that car being worth 13k in 2 years time.

I don't think there is any new car of a reasonable size that you could run for 2 years with only 4.9k in depreciation!

[fzbucks]

There seems to be something up with that lease deal, just checked on ling and the 2.7 premium list comes to 37k, lease for 3+35 comes to 24k meaning they are working on the basis that the car will be worth roughly 13k in three years which is mental.

I have to agree that in this case the jags don't seem to be good leasers.

Other cars can be great deals though. I don't think it's cut and dry cash purchase versus lease, have you tried to sell a second hand car recently? It's ver ver difficult.

The lease companies have to make a profit, like you say selling second hand cars is hard at the moment so depreciation is high.

[AZZIK]

Dude, if you buy car for £32k you will still have this car in 3 years (depreciation won't be 66% either - at least one should not buy such car) - in case of contract hire you will have no car in 3 years and £22k down the drain - probably get stung by small print for more money.

Get Ford Mondeo, it's cheaper and looks like that jag.

HTH

Exactly WHS

[London75]

There seems to be something up with that lease deal, just checked on ling and the 2.7 premium list comes to 37k, lease for 3+35 comes to 24k meaning they are working on the basis that the car will be worth roughly 13k in three years which is mental.

I have to agree that in this case the jags don't seem to be good leasers.

Other cars can be great deals though. I don't think it's cut and dry cash purchase versus lease, have you tried to sell a second hand car recently? It's ver ver difficult.