Buy a car or lease a car ??

Charlies Shinpad · Jul 19, 2013

Been pondering this question for a while and done some research on Internet but still don't know which way to go with pro's and cons on both sides,so I thought I would ask the good people if NSC there experience of leading (but not as a business lease)
Cheers

surrey jim · Jul 19, 2013

Cannot say as I have only ever purchased second hand but colleagues at work have used lingscars.com and would recommend

gasgull · Jul 19, 2013

I'm in the same position.
Looking forward to lots of information on this thread.I need a new car and van.
Totally confused.
I'm also looking for new works van.non vat. So if anyone's got advice on that it would be appreciated..

Biffer · Jul 19, 2013

I lease so that the VAT can be claimed back.
You drive a brand new car of your choice every 3 years. Winner.

scooter1 · Jul 19, 2013

I used to work for a lease car company and everybody there swore by it, but i'm just not sure. I guess it depends if you want to write off a £600 odd deposit and £200 a month for 2 or 3 years, and then end up with nothing to show for it - that's standard leasing not PCP. Or, you borrow that amount of money and at the end, actually own something. The only benefit of leasing(other than the kudos of constantly having a new car, this is expensive) is that you get the road tax paid(if you have a big car). You still have to have it dealer serviced(you pay) and any nicks and dents at return time, cost you...

JJ McClure · Jul 19, 2013

Most lease options also have mileage limits I think and then pay per mile after that so not good if your doing high mileage.

blue2 · Jul 19, 2013

The cost to lease or buy based on same car from new assuming mileage is within limits and car has no damage then owning is slightly cheaper

BigGully · Jul 19, 2013

I guess with leasing you can acquire a car that you otherwise cannot afford.

Psychologically a two or three year commitment seems far less daunting than trying to raise £20 000+ loan to cover the same car.

I am not sure on this but I have always thought that leasing companies credit rating criteria might be far more lenient than the high street banks when considering the loans, so more accessibility to funding.

beorhthelm · Jul 19, 2013

scooter1 said:
.... I guess it depends if you want to write off a £600 odd deposit and £200 a month for 2 or 3 years, and then end up with nothing to show for it - that's standard leasing not PCP. Or, you borrow that amount of money and at the end, actually own something.

something which has cost you interest on the loan and depreciated in value considerably.

personally, i go for buy an older car that doesnt cost too much route. the economics of new cars are eyewatering.

kingcole · Jul 19, 2013

If you are VAT registered, then leasing often wins as you can claim back 50% of the VAT.

If not, a private PCP may work out cheaper with the possibility of some residual value to use towards the one after.

Leasing has the road tax included, but this is often nil or minimal on a modern economical car these days.

With leasing you may be able to end up driving a prestige car you could not afford or buy or finance. Eg a Merc or BMW. These cars hold their value so well, they are often cheaper to lease than an equivalent sized Ford.

Simster · Jul 19, 2013

beorhthelm said:
the economics of new cars are eyewatering.

Very much this. We leased our last car for three years and were very happy with it, but ultimately both buying and leasing is very expensive compared to the cost of a reliable second hand car with full service history.

I lost my job in February and took a massive salary hit to get back into work two months later. The first casualty of that was the decision to replace the lease car with a 10 year old Volvo as opposed to something a bit more sexy. It's a decision I've grown increasingly comfortable with.

kingcole · Jul 19, 2013

beorhthelm said:
something which has cost you interest on the loan and depreciated in value considerably.

personally, i go for buy an older car that doesnt cost too much route. the economics of new cars are eyewatering.

This. If you want to buy and have an asset in 3 years time, buy 2nd hand.

If you want a new car every 2 or 3 years then PCP (or lease if VAT registered)

scooter1 · Jul 19, 2013

beorhthelm said:
something which has cost you interest on the loan and depreciated in value considerably.

personally, i go for buy an older car that doesnt cost too much route. the economics of new cars are eyewatering.

I too go for the older/reliable car option.
I was merely suggesting an alternative option

piersa · Jul 19, 2013

When you lease a car, don't you have to account for every little scratch on the car and pay for them.

Springal · Jul 19, 2013

Personally I'd lease, I've done it for my last 2 now. Much nicer to know you hand it back if you don't want to buy, and some people - such as BMW - are doing rates as low as 2.9% APR at the moment.

Bozza · Jul 19, 2013

Springal said:
Personally I'd lease, I've done it for my last 2 now. Much nicer to know you hand it back if you don't want to buy, and some people - such as BMW - are doing rates as low as 2.9% APR at the moment.

Where does an (interest?) rate come into it when leasing? You just pay a flat-rate monthly fee (after the deposit) do you not?

kingcole · Jul 19, 2013

Springal said:
Personally I'd lease, I've done it for my last 2 now. Much nicer to know you hand it back if you don't want to buy, and some people - such as BMW - are doing rates as low as 2.9% APR at the moment.

What has an interest rate got to do with a lease? You are not borrowing money, just a car!

EDIT: Sorry Bozza!

Springal · Jul 19, 2013

Sorry - I was more referring to a HP or similar, which is what I have used.

WATFORD zero · Jul 19, 2013

Simple - save up the cash, negotiate hard and buy a car between 1-3 years old. Also get yourself a good reliable garage (not a dealers). Guaranteed best deal every time.

I thought people had learnt by now that if you have to commit to some long term credit deal (lease or loan), you are throwing away money. (Or did i dream the credit crunch ?)

Tim Over Whelmed · Jul 19, 2013

Rolling leases, where you get a car and six to twelve months later change it, spot on and loads of fun. Pay a bit more but always have that new smell!

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