Leasing

They buy cars at a good discount because of their volume and they also get tax perks which they can pass on to the customer in the form of lower payments.

Rob Graham

The message from antgel contains these words:

If you're happy to run an old banger and do your own maintenance (up to a point then bin it and start again) then bangernomics is still the cheapest way to go.

Or even, if it's not a banger, just buy second hand. Anything less than

Shop around properly and it WILL be far cheaper than buying new - lease or otherwise.

See may other post in this thread.

TBH, buying new is quite silly - it doens't make financial sense.

Of course, the emotional desire can "take over".

The leasing companies will get a reduced purchase price due to bulk purchase. If you can get similar through a broker, say, you'll be cheaper in the long run.

The message from "T." contains these words:

My emotional desire is to avoid excessively complex computer systems in modern cars!

I meant thoughts on leasing and the pros/cons thereof!

Indeed - but if one is going to buy new, then is leasing really anything other than a kick in the nuts, these days?

But I guess the question is, how is leasing for say three years at a time going to work out in comparison to buying new every three years?

Yes I know buying second hand is cheaper but some mug has to buy new ;-)

The message from antgel contains these words:

Well, that's my view! You can get a better deal by running a banger into the ground.

That is indeed the question.

Indeed they do.

All depends on the specific deal.

I suspect it would be cheaper to probably lease an Alfa, 'cos of the deprication, but maybe the same to buy something like a BMW yourself.

You have to get the pen and paper out, and do some maths.

When you do the maths, also work it out for nearly new. Something less than 6 months old, say. Make sure it's also exactly the same spec. etc.

If you can get as good a deal as the lease company by using a broker, then cheaper since both cars will be sold after three years - and a privately owned car might just be worth more. The lease company has to make a living.

Dunno about tax advantages, though. You'd need to check with your accountant.

Make sure the lease price includes VAT. Also watch out, because some '3-year' deals have 37 payments.

I did the sums last year (I have the choice of a company leased car, or a cash allowance), and I could lease a Mondeo 130 BHP diesel estate for less than I could run one myself. Even assuming I bought a car up 12 months old, the lease was still cheaper - mainly due to the price they pay for the car in the first place.

So ... it can pay. You have to do the maths!

Don't forget to allow for minor repairs to get it up to return standard at the end - there used to be a good guide on the lex leasing site.

PRo: No maintenance costs. New car for cheap monthly payments.

Con: You'll never own it. You can't modify it. Limited annual mileage. That scratch you got in Tesco will cost you a fortune when you hand it back.

And high per-mile charges if you exceed the annual "limit".

Why is that a con?

What about maintenance? Presuably a lease company will keep your car maintained as part of the price?