| Leasing makes a lot of sense but it's not for everyone, if you want a new car every 2 to 3 yrs with little hassle moving your part X etc. then it's great.
If you don't want / need a new car then buying could be the best option.
Before you do either sit down and do some maths, - work out the cost of your new car on the road, how you fund it (cash, loan, HP etc. factor in the interest on this) then estimate what you would get for the car in 2/3 yrs at TRADE price - be realistic and research it properly. Add it all up & divide by the months 24 or 36 - the figures become a bit scary here.
Then compare with leasing and the cost per month plus any deposits.
My other half is on her second private lease and it suits her, she needs a good solid reliable car for work etc. and I don't want the hassle of garage bills when it coughs and stops working.
Our first car was a Golf diesel MK5 which was around £215 a month with a mileage loading included at the end of term (18 months) and now she has a 56 reg. Renault Coupe/Cabrio at £265 a month with 15k miles allowance over 2 years, (no service plan), she averages just around that figure so we shouldn't get any surprises at the end of lease.
Her car previous to this was 51 reg. Clio we bought this and had for just over 3 years, when we sold it privately at over trade value we worked out that it had cost us over £250 a month with some repair cost but not servicing so for us leasing a was 'no brainer' really.
Another consideration too is how much 'equity' do we really have in our own cars, they depreciate so fast now because we have a flooded market
which means most folk haven't paid off their current one when they get fed up and do the deal for a new one.
Before the 2 yrs. is up she'll shop around for another deal and simply step into the next car and as long as the old one isn't knocked around too much the lease company will be happy (some wear & tear is expected and it's in the small-print).
Check it out.  |