[mick_n3]

I'm in need of honest and simple advice, the e90 has blown yet another turbo so has to go, as her indoors who is main driver has no confidence in it any more fair point I suppose. Now I work away from home so need something reliable and worry free well as much as possible.

Now for my question do I take a personal lease for a new car or buy, the buying bit I understand I pays my money and takes the car, but the leasing I'm not sure about, keep seeing adverts and post on forums for great leasing deals but still not sure how it all works.
To be honest I'm sort of leaning towards the lease new car and relativity worry free because of warranty etc.

Any advice and guidance appreciated

[rufnekfatboy]

I would say if you are in a position where you can set a budget for ex amount of years, say £300 per month to include a service package, then go for a lease option..

New car every 3 years no extra costs, but you are paying for the peace of mind.

Will depend on what car you/misses wants to drive, mileage ya gonna do.. blah blah

To be honest say you buy a brand new car cash(would be nice) most people will keep it for min 5 years before they swap as you will probably do max 45k miles, if its looked after it will still be a nice car and its yours. Sell it/Px against a new one, say the 20k you spent on the last one is now 15k on the next one and so on.

I would look at it like this...

Do you rent a house or mortgage it..

Rent it and you know what ya paying and that stays the same or goes up year on year.

Buy it, when you sell it you could/will have a bit of money to put down on the next one..

I would not go down the road of Lease/personal contract hire ever again as I feel if your circumstances change even tho they tell you at the time, yeah no worries you can change/upgrade/down grade when ever you want... which is true in a way, but you will always get that, yes sir no problem at all we can sort that out.... BUT YOU GONNA HAVE TO PAY... ASSUME THE POSITION...

Hope this has been some help to you, sorry if it turned into a bit of a rant..

[gIzzE]

But then you see a new car like this and think 'hmmmm?'

http://www.cars2vans.com/contract-hi...back-19921.cfm

[nicktyler]

The way I would look at it is not the value of the car but the cost of ownership. A second hand car might look cheaper to 'buy' but there is the risk of unexpected bills as you obviously know by now.

leasing a car can be very good value. Almost too good to be true as gizzE points out and if you can put down a big deposit you can reduce your monthly payments significantly (although you won't get it back at the end).

With the lease you are reducing the risk of unexpected bills to almost 0 and you are getting a nice new car but you are locked in with very little to show for it at the end.

if you do the sums and weigh up the risk you are comfortable with along with how new a car you want then you should come to the right decision.

[mick_n3]

Thanks for the replies, to buy used or new i would have to take finance out, so it's whether to accept that I won't own it if leased and as Nick says lease reduces unexpected bills
and I assume should a breakdown happen the lease company supply another car whilst yours is being repaired.
After doing some searching I am leaning towards leasing simply because of the worry free factor as I said I work away so that factor is important.
Anybody recommend a decent leasing company, not necessarily the cheapest but a trusted one

[dobbo99]

So we did a lease last year for similar confidence reasons. The wife would be off on maternity leave and we had the little one to carry about and I wanted then to be reliable and safe. So did a 2 year lease at £200 a month and 6payment deposit.
All we have done is just fill the car up with diesel, its taxed and it wont need a service till 20k miles and we will have handed it back by then.
Unless you opt to have it, you wont have a service/maintanence agreement with the lease company, it will be up to the manufacturer and in our case thats Nissan. But they provided us with a loan car for a few days when ours was in for warranty work.
Its been hassle free, and will do it again when this lease comes to an end and spent a bit more 2nd time around.

[mick_n3]

Originally Posted by dobbo99

So we did a lease last year for similar confidence reasons. The wife would be off on maternity leave and we had the little one to carry about and I wanted then to be reliable and safe. So did a 2 year lease at £200 a month and 6payment deposit.
All we have done is just fill the car up with diesel, its taxed and it wont need a service till 20k miles and we will have handed it back by then.
Unless you opt to have it, you wont have a service/maintanence agreement with the lease company, it will be up to the manufacturer and in our case thats Nissan. But they provided us with a loan car for a few days when ours was in for warranty work.
Its been hassle free, and will do it again when this lease comes to an end and spent a bit more 2nd time around.

Who did you lease it with? we're going to have a look round and test drive a few options this weekend to decide what to have.

[Dannyrado]

You will get a lot of sheep telling you that lease is the way forward. It has it's place, I agree, but I'll say it again, it's not the only way.

I've bought many cars over the last few years, each time securing a superb cash deal, and with each, after selling and calculating the costs, I have been MUCH better off than I would have been leasing.

I say if you have the money pay cash, if you don't, you'll have to pay interest anyway, so lease.

[gangzoom]

Just remember 24-36 months down the line from a lease your need to find another load of deposit and commit to another 24-36 months of repayments.

If your after a new car every 2-3 years I think lease hire makes sense, but getting a new car every 2-3 years is always going to cost you more (regardless of how you pay for it) than keeping a single car for 5-6 years.

[gIzzE]

Originally Posted by Dannyrado

You will get a lot of sheep telling you that lease is the way forward.

The guy in Wales has sheep on the brain!! Hmmmmm?

[Dannyrado]

Lol, I deserved that.

[misterS3]

My only concern with leasing (which can be cheaper than the depreciation costs) is that i kerb alloys like it's a hobby and shopping trolleys love to bash into my cars. So there is the cost of having to get that done at the end. Whereas with my cars i own (5 and 4.5 years old) i just ignore or use a marker pen because i know the minute i get the alloy 'furbed...another kerb will just out and do me!!

I can remember exactly the first time i kerbed an alloy in all my cars over the past 10 years.....that's pretty sad isn't it? (or probably normal on here!)

[mick_n3]

Thanks for the replies, had a look round over the weekend and decided to go with a 3 year PCP deal.
Looks like I will be signing on the dottted line in a couple of weeks, just waiting for the e90 to come back from repair and use that towards the deposit, gone with a Seat Leon FR, just deciding, well battling with the wife as to what options I can have on it

[SteveC]

The cash vs. lease decision isn't quite so straightforward.

Buy a car and keep it 5 years vs. lease a new car every 2 years?

When you buy the car, you save on interest, but end up driving a car for 2 years w/o warranty or with a warranty extension. Also, if you're like me you'll probably trade earlier anyway. Either way, budget for warranty or some repairs and 2-3 extra sets of tyres

When leasing every 2 years, you pick up the first year depreciation, which is always the highest 2.5 times in the same 5 year period, so leasing is quite expensive from both an interest and depreciation standpoint....BUT

These days, leasing is a way for manufacturers to move a lot of excess metal and they do so by hugely discounting certain cars to lease companies.
For example today you cannot buy a new C series AMG anything like as cheaply as you can lease it. Same is true for certain other models.
There are lease deals out there where deposit + payments = half the depreciation after cash discounts.