A friend has just told me that leasing is the way forward for new car
ownership.  I suppose that if the amount that I pay over, say, three
years, is less than the amount of three years depreciation, then I'm
onto a winner, otherwise I can't see the point.

I thought it was just for people who want something that they can't
afford, and want it so much that they are prepared to pay more in the
long run.  Otherwise, how could the leasing companies make money?

Thoughts?

(Note that this is not company-based, referring to private ownership of
a car.)

"antgel"  wrote in message 
news:42bfe87e$0$2601$da0feed9@news.zen.co.uk...

>A friend has just told me that leasing is the way forward for new car
> ownership.  I suppose that if the amount that I pay over, say, three
> years, is less than the amount of three years depreciation, then I'm
> onto a winner, otherwise I can't see the point.
>
> I thought it was just for people who want something that they can't
> afford, and want it so much that they are prepared to pay more in the
> long run.  Otherwise, how could the leasing companies make money?
>
> Thoughts?
>
> (Note that this is not company-based, referring to private ownership of
> a car.)


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 <42bfe87e$0$2601$da0feed9@news.zen.co.uk>
from antgel  contains these words:


> Thoughts?


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.

-- 
Skipweasel.
Ivor Cutler - "Never knowingly understood."

Guy King wrote:

> The message <42bfe87e$0$2601$da0feed9@news.zen.co.uk>
> from antgel  contains these words:
> 
> 
>>Thoughts?
> 
> 
> 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 
5 years old say.

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

antgel wrote:

> A friend has just told me that leasing is the way forward for new car
> ownership.  I suppose that if the amount that I pay over, say, three
> years, is less than the amount of three years depreciation, then I'm
> onto a winner, otherwise I can't see the point.
> 
> I thought it was just for people who want something that they can't
> afford, and want it so much that they are prepared to pay more in the
> long run.  Otherwise, how could the leasing companies make money?
> 
> Thoughts?
> 
> (Note that this is not company-based, referring to private ownership of
> a car.)


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 message <42bff742$0$2594$da0feed9@news.zen.co.uk>
from "T."  contains these words:


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


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

-- 
Skipweasel.
Ivor Cutler - "Never knowingly understood."

In article <42bfe87e$0$2601$da0feed9@news.zen.co.uk>,
   antgel  wrote:

> A friend has just told me that leasing is the way forward for new car
> ownership.  I suppose that if the amount that I pay over, say, three
> years, is less than the amount of three years depreciation, then I'm
> onto a winner, otherwise I can't see the point.

> I thought it was just for people who want something that they can't
> afford, and want it so much that they are prepared to pay more in the
> long run.  Otherwise, how could the leasing companies make money?


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.

-- 
*INDECISION is the key to FLEXIBILITY *

    Dave Plowman        dave@davenoise.co.uk           London SW
                  To e-mail, change noise into sound.

Guy King wrote:

> The message <42bfe87e$0$2601$da0feed9@news.zen.co.uk>
> from antgel  contains these words:
> 
> 
>>Thoughts?
> 
> 
> 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.


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

T. wrote:

> antgel wrote:
> 
>> A friend has just told me that leasing is the way forward for new car
>> ownership.  I suppose that if the amount that I pay over, say, three
>> years, is less than the amount of three years depreciation, then I'm
>> onto a winner, otherwise I can't see the point.
>>
>> I thought it was just for people who want something that they can't
>> afford, and want it so much that they are prepared to pay more in the
>> long run.  Otherwise, how could the leasing companies make money?
>>
>> Thoughts?
>>
>> (Note that this is not company-based, referring to private ownership of
>> a car.)
> 
> 
> 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".


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

"Dave Plowman (News)"  wrote in message 
news:4d8197a67adave@davenoise.co.uk...

>
> 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.


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 <42bffe2f$0$23714$db0fefd9@news.zen.co.uk>
from antgel  contains these words:


> >>Thoughts?
> > 
> > 
> > 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.

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


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

-- 
Skipweasel.
Ivor Cutler - "Never knowingly understood."

Mark Hewitt wrote:

> "Dave Plowman (News)"  wrote in message 
> news:4d8197a67adave@davenoise.co.uk...
> 
>>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.
> 
> 
> 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?


That is indeed the question.


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


Indeed they do.

antgel wrote:

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


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.

antgel wrote:

>>
>>
>>>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.
>>
>>
>>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?
> 
> 
> That is indeed the question.
> 
> 
>>Yes I know buying second hand is cheaper but some mug has to buy new ;-)
> 
> 
> Indeed they do.


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.

In article <d9p0gr$ngj$1@ucsnew1.ncl.ac.uk>,
   Mark Hewitt  wrote:

> > 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.

> 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?


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.

-- 
*Nothing is foolproof to a sufficiently talented fool.

    Dave Plowman        dave@davenoise.co.uk           London SW
                  To e-mail, change noise into sound.

"antgel"  wrote in message 
news:42bfe87e$0$2601$da0feed9@news.zen.co.uk...

>A friend has just told me that leasing is the way forward for new car
> ownership.  I suppose that if the amount that I pay over, say, three
> years, is less than the amount of three years depreciation, then I'm
> onto a winner, otherwise I can't see the point.
>


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.

In article <42bfe87e$0$2601$da0feed9@news.zen.co.uk>, antgel says...

> A friend has just told me that leasing is the way forward for new car
> ownership.  I suppose that if the amount that I pay over, say, three
> years, is less than the amount of three years depreciation, then I'm
> onto a winner, otherwise I can't see the point.
> 
> I thought it was just for people who want something that they can't
> afford, and want it so much that they are prepared to pay more in the
> long run.  Otherwise, how could the leasing companies make money?
> 
> Thoughts?
> 
> (Note that this is not company-based, referring to private ownership of
> a car.)
> 

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.

-- 
Conor

-You wanted an argument? Oh I'm sorry, but this is abuse. You want room 
K5, just along the corridor. Stupid git. (Monty Python)

On Tue, 28 Jun 2005 13:40:01 +0100, Conor 
wrote:


>In article <42bfe87e$0$2601$da0feed9@news.zen.co.uk>, antgel says...
>> A friend has just told me that leasing is the way forward for new car
>> ownership.  I suppose that if the amount that I pay over, say, three
>> years, is less than the amount of three years depreciation, then I'm
>> onto a winner, otherwise I can't see the point.
>> 
>> I thought it was just for people who want something that they can't
>> afford, and want it so much that they are prepared to pay more in the
>> long run.  Otherwise, how could the leasing companies make money?
>> 
>> Thoughts?
>> 
>> (Note that this is not company-based, referring to private ownership of
>> a car.)
>> 
>PRo:
>No maintenance costs.
>New car for cheap monthly payments.
>
>Con:
>You'll never own it.
>You can't modify it.
>Limited annual mileage.


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


>That scratch you got in Tesco will cost you a fortune when you hand it 
>back.

Conor wrote:

> 
> Con:
> You'll never own it.


Why is that a con?

"Dave Plowman (News)"  wrote in message 
news:4d81a88b48dave@davenoise.co.uk...

> In article <d9p0gr$ngj$1@ucsnew1.ncl.ac.uk>,
>   Mark Hewitt  wrote:
>> > 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.
>
>> 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?
>
> 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.


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

"T."  wrote in message 
news:42c27cd2$0$18805$da0feed9@news.zen.co.uk...

> Conor wrote:
>>
>> Con:
>> You'll never own it.
>
> Why is that a con?


If you buy a car new you have the option to keep it once you've finished 
your payments. With a lease you have no choice other than to hand it back or 
keep paying.

Similar to buying a house vs renting.

In article <da0rp5$fd4$1@ucsnew1.ncl.ac.uk>,
   Mark Hewitt  wrote:

> > 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.

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


Not usually, no. But then many makers offer 3 years free servicing.

-- 
*Growing old is inevitable, growing up is optional *

    Dave Plowman        dave@davenoise.co.uk           London SW
                  To e-mail, change noise into sound.

Mark Hewitt wrote:

>>Conor wrote:
>>
>>>Con:
>>>You'll never own it.
>>
>>Why is that a con?
> 
> 
> If you buy a car new you have the option to keep it once you've finished 
> your payments. With a lease you have no choice other than to hand it back or 
> keep paying.
> 


Really? Isn't there a "buy" option at all, ever?

Anyway, I don't see that as a con. I thought that was the whole point of 
leasing?