Cash .vs. Finance .v.s Lease

Cash for me!

Wow a fair few people buying as cash. As you not all worried about the depreciation on cars? However if the Glass's guide is to go by, then it makes for good reading

Well leaving it in the bank isn't going to earn you very much interest so you might as well spend it on something you are going to enjoy. Doesn't matter what new car you buy it's going to depreciate just that for the first year the RRE will depreciate less than most others. Personnally I don't bother about the depreciation - I invariably end up buying a car that will loose a fortune anyway but I enjoy them and don't think too much about what they will be worth 2-3 years down the road!

Exactly

+1

I tend to find that "new" design cars hold their value very well for the first few years as there are very few used ones around.
Also, the base models seem to lose less (as a percentage of their purchase cost)?
I bought a Ford Kuga 3 years ago (as soon as it was released) in the basic "Zetec" trim with a few extras for £19,995. I used the Ford PCP scheme and after 3 years the GFV was £9.5K, which I paid off. I sold the car for £14,250 last month, so it depreciated by under 6K in 3 years which I thought was pretty good.
I have odered a Pure, with a few extras, Panoramic, privacy glass and 20" Alloys and I am hoping that the same happens with this car. However, time will tell.
As for finance, I am using the money from the Kuga sale plus a 15K loan from M&S at 6.4%. I have used savings for the 2K shortfall as the rates rise for the loans once you borrow above 15K.
I wasn't too keen on the PCP scheme as you need to keep an eye on the mileage and vehicle condition is case you need to hand it back after the term, so with the Evoque i just wanted to drive it out of the dealership and not owe LR anything, with just the £15K M&S loan owing.

Very sensible Ceebee the M&s deal is the best for up to 15k and I'm sure residuals will stay strong.

Finance for me.

(10-10-2011 10:40pm)jiggyjaggy Wrote:  Scrap what I said earlier, I don't think I can wait 6 months to lease a car, and Im not wanting to put down £40 on a new one, purely as I can use the money for my business. Time to find out which leasing company can provide me a white Dynamic within 6-8 weeks! lol

Patience is definitely not a virtue! ha ha

I have also been looking at this (my current Audi is on Private Contract Hire from a leasing company). To be fair on a car forum you will always get a 'cash' answer because ownership is part of being a car enthusiast.

What many people most probably don't realise is that the really big leasing companies don't pay anything like list price for the vehicle and even though it might be delivered via the dealer network they will get a 'kick-back' direct from the manufacturer. When your buying power is measured in the 10s of thousands of vehicles per annum almost anything is possible.

If one is looking to lease a vehicle this it is perfectly possible to get a deal that just doesn't stack up with buying a car using cash - because your aren't comparing like with like. I have access to a company car scheme and the monthly lease prices on 3 years/60,000 mile inc full maintenance on a SD4 Prestige are competitive (including the increased income tax burden) with the best private lease deal I've found. The only way this can happen is if the leasing company either has access to very cheap money or the purchase price is significantly lower in the 1st place.

It's not fair is it?

Has anyone kept an eye on the leasing costs over the last few months, have they come down at all?