Reply to: Car finance vs depreciation

[Archangel]

I've just been offered an a3 sport back with sat nav for £200+ vat for two years. Not the car for me, but looks a good deal. I'm waiting for the right car over two years and them will probably lease.

(I've had an '08 a4 avant s-line for two years, no problems, £800 servicing, probably £5k depreciation)

[bobspud]

I can see A7 leases
15000
36 months
£1,490.97
£496.99
+ 20%pm fr the VAT if you want to take it personal which would take it up to around £600 pm - there is a more expensive S-line option but don't know if that is the one you are talking about which works out

15000
36 months
£3,118.86
£519.81
+VAT

Also you're not really comparing apples with apples if you wanted to compare against a second hand one
Most of the lease is taken up with the initial depreciation which as we all know is severe on the the first 3 years (and which I believe demonstrates they are over priced in the first place)

How would you finance your £30k nearly new purchase btw?

I just had a sift round and found a generic sporty model, which I know is a con cause they just mark up a massive margin on crap options that should be standard.

So the 305BHP diesel came in at 886 on 25k a year.

The car would be a personal lease so I am not going to get the vat back.

It would be cash for a second hand car. If I take a lease the money would still end up getting used elsewhere...

[Troll]

So a fairly basic Audi A7 3.0tdi black edition would cost me 800 a month to lease. While I can go on auto trader and grab a fairly new one for around 30k...

How is a lease ever cheaper?

I can see A7 leases
15000
36 months
£1,490.97
£496.99
+ 20%pm fr the VAT if you want to take it personal which would take it up to around £600 pm - there is a more expensive S-line option but don't know if that is the one you are talking about which works out

15000
36 months
£3,118.86
£519.81
+VAT

Also you're not really comparing apples with apples if you wanted to compare against a second hand one
Most of the lease is taken up with the initial depreciation which as we all know is severe on the the first 3 years (and which I believe demonstrates they are over priced in the first place)

How would you finance your £30k nearly new purchase btw?

[bobspud]

Every time I look at personal leasing I come to the conclusion that the punter ends up funding the entire cost of the car in the lease without owning the car out right in three years time. What am I missing because some of you seem to think this is better than HP.

I am in the market for a new car this year. My main concern is that my Mileage fluctuates from 10k per annum when working from home to 50k if ending up in a daily commute.

So a fairly basic Audi A7 3.0tdi black edition would cost me 800 a month to lease. While I can go on auto trader and grab a fairly new one for around 30k...

How is a lease ever cheaper?

[IR35FanClub]

At the moment there are some 2 year lease deals that work out less than the 2 yr depreciation. Add to that a large cash outlay being tied up in a car has an opportunity cost to it.

Exactly what I found to my surprise. By the time you stick everything in an Excel you think how do they do that. Then you remember - stopping a production line is not a good idea so if you can get someone to cover the depreciation for 2 years and sell the car to a finance company at a small profit your are quids in and buy time for either the market to pick up, or cut back production.

My particular deal was a Juke 1.6 Accenta Premium for £225 a month. It's not gonna be worth £10k in 2 years time so I reckon I got a well good deal. Definitely a marmite car - I didn't like them when they came out, but kept noticing them, and eventually though ah, what the heck, they look unusual and I'm ok with that. After driving 4x4 tanks for the last 3 years it feels like a Ferrari and makes me wonder why the EU hasn't legislated all cars should be limited to 120 BHP? LOL

I had a 330ci a few years back - it cost me £10k for 2 years of driving - and that was from age 6 to age 8! Only had 70k on the clock. ECU, ESP, temp sensor, parking sensors, air con, bushes, clutch all went. Then transmission started to clunk so it got sold quick. It would have been only a bit more to lease brand new M3!

Cmax bought at 6 months old blew a turbo at 3.5 years old - outside warranty, also EGR valve went, lots of issue with electronics like - lack loss of power when pullng off.

X-Trail bought at 4 years old threw a valve at 5 years old. £2700 for an engine rebuild.

Only reliable car I had and wish Id kept was a mark 3 golf that had done 120k. Only thing that went in 4 years was a brake line. But the paint was peeling off all over as it was red, and it looked a mess.

Did have an Navara for 18 months no worries with failures there, they're built like tanks, but you stick 80 lites of fuel in and its gone before the next weekend. It might seem a good idea to some people as a company "van" to avoid paying BIK tax, but I can assure you - HMRC don't mind as they'll get you on the fuel duty and road tax.

[kingcook]

I like the smell of new cars so I buy new.

HTH

It's thanks to mugs^H^H^H^Hpeople like you that 2nd hand cars are available to buy

[ZARDOZ]

Generally, I would avoid paying rent or interest whenever possible.

Sometimes it cannot be avoided and each cases needs to be looked at, so buying a house with a mortgage is usually better than renting etc.

With personal car leases, you are usually paying a high charge for the credit and for the mileage etc, even though this is usually wrapped up in 'one simple, monthly fee'

At the moment there are some 2 year lease deals that work out less than the 2 yr depreciation. Add to that a large cash outlay being tied up in a car has an opportunity cost to it.

[IR35FanClub]

Not being facetious, is a personal leave just a misspelling /autocorrect of personal loan? Or something I've not heard of (and can't be bothered googling)?

It's mobile phone without me glasses and auto replace spleen chequer. Personal lease!

[darmstadt]

I object to paying over the odds for marketing and extras for inferior products.

My German car with over 180,000 on the clock in 5 years hasn't been in the garage yet

[adubya]

Personal lease innit.

[Archangel]

I used to buy 1-3 years old cars and keep till they got expensive to fix. But after a string of "expensive to fix in their first year of me owning them" cars I decided to lease this time. I know what my costs are for the next 2 years and only add fuel and insurance.

Done a Personal leave (not HP or PCP) as I don't want to pay BIK tax on a car I hardly use. Train is faster and I get to sleep/google.

By my calcs its' cheaper than buying as the depriciation figures are not what you actually get when selling (bend over at the stealers and take £1500 less than Parkers says! or try and sell through autotrader and get £500 less than your best price!) , and don't include the repairs and servicing you add extra on top. Dont forget the lease companies get some good discounts from the manufactures.

Not being facetious, is a personal leave just a misspelling /autocorrect of personal loan? Or something I've not heard of (and can't be bothered googling)?

[IR35FanClub]

If you were to buy a new car in the next month or so would you pay out a lump sum to buy it outright or get a financing deal?

Would you get a loan? Hire purchase? PCP?

I used to buy 1-3 years old cars and keep till they got expensive to fix. But after a string of "expensive to fix in their first year of me owning them" cars I decided to lease this time. I know what my costs are for the next 2 years and only add fuel and insurance.

Done a Personal leave (not HP or PCP) as I don't want to pay BIK tax on a car I hardly use. Train is faster and I get to sleep/google.

By my calcs its' cheaper than buying as the depriciation figures are not what you actually get when selling (bend over at the stealers and take £1500 less than Parkers says! or try and sell through autotrader and get £500 less than your best price!) , and don't include the repairs and servicing you add extra on top. Dont forget the lease companies get some good discounts from the manufactures.

[sasguru]

So not long after you buy one it starts smelling of unadulterated Sas?

Yes it smells of success.

[OwlHoot]

I like the smell of new cars so I buy new.

HTH

So not long after you buy one it starts smelling of unadulterated Sas?

It would work out cheaper to use some powerful air freshener, like Ozium

Or liquid leather air freshener

[sasguru]

as the last car is a rebadged subaru and the others were other Japanese models I think the most we can hope for is that he kept a UK car dealer going for another day

I usually buy Japanese (or now Korean), I like good value, reliability and decent comfort.
I object to paying over the odds for marketing and extras for inferior products.
Of course people like Dim like stroking their "soft-touch" plastics when their car is in the garage for fixing