I am leaving my current company where I have had a company car for 3 years and weighing up the most economical approach to commuting here on forth. Personally, not too fussed about brand new cars and just trying to find the best option.
I have done the maths as can be seen below and I believe it to be a better option to buy and sell a car after using it for 2 years by circa £3,000.00.
Option 1: A Lease Deal worked out as follows: \x09 (Total Cost - £8639.38 over 2 years) Deposit - £682.34 Monthly Hire - £228*23 = £5224 (23 as first month is the deposit cost) Admission/ Processing fee - £360.00 Insurance - £800.00 * 2years = £1,600.00 Service - £150 * 3 services = £450.00 Tyres replacement - £100 a tyre = £400.00
Option 2: Buying and Selling a car after 2 years worked out as follows: \x09 (Total Cost - £10,450.00 – 5,600.00 = £5,350.00 over 2 years) Car - £8,000.00 (based on various cars inc. 2010+ bmw 1series, bmw 320, c class etc: under 60K mileage) Insurance - £800.00 * 2years = £1,600.00 Service - £150 * 3 services = £450.00 Tyres replacement - £100 a tyre = £400.00 Contingency/Repairs - £500.00 Value of car after 2 years - £8000.00 *.70 = £5600.00 (based on 15% depreciation per year)
All comments (73)
SPRR0W
25 Jul 17#1
Have a look on AutoTrader, even 2002/2003 sheds go for £2000. This is well known compared to Renault, Fiat, Vauxhall etc. - laugh all you want.
lhurren
25 Jul 17#2
I thought that too. Also, leasing includes road tax and you can often get away without having a service or new tyres on a 2yr lease.
corpjoness
25 Jul 17#3
This is a good deal, unfortunately for me buying a 3 year used always ends up better value as I do 15k miles per annum, always get tempted though when these deals come up! Thanks OP.
Any higher mileage leasers around that have made it work?
FlyerUK
25 Jul 17#4
They come as standard, but it costs extra to be taught how &a when to use them
5557223
25 Jul 17#5
Good find OP, but please borrow responsibly.
"Only when the tide goes out do you discover who's been swimming naked." -Warren Buffet
yant
25 Jul 17#6
so you're the one that goes from table to table at the pub drinking the left overs. Good things we're not allowed to smoke in pubs nowadays, on the olden days, you'd swallow cigarette's stubs at the same time :-)
muz379
25 Jul 17#7
It could be better to buy the car outright for cash , keep it for 2 years and sell .
But are you prepared to take the risk that the car wont depreciate more than expected ?
What would have happened say you bought a brand new Golf TDI just before the emissions scandal broke ? you might be looking at depreciation well beyond what expected . Especially now that it is becoming apparent that the fix that VW have implemented is causing more issues .
A safety recall or instances of company actions that could increase depreciation are completely unpredictable .
volksdub
25 Jul 17#8
Everyone is different. I can't keep a car that long as I get bored easily. Also you are then out of the warranty and could potentially start seeing additional costs. I bought my A6 cash at 2 years old and sold it at 3.5 years old and I still lost 5k in 18 months. It had already lost 10k at the point when I bought it. Now I lease a Golf R which will cost me 6.5k over two years and I don't even need to tax it. So it's not such a bad feeling for me paying this as I know I would have lost a lot more if I had bought it from new myself. As said everyone has their preference.
Opening post
I am leaving my current company where I have had a company car for 3 years and weighing up the most economical approach to commuting here on forth. Personally, not too fussed about brand new cars and just trying to find the best option.
I have done the maths as can be seen below and I believe it to be a better option to buy and sell a car after using it for 2 years by circa £3,000.00.
Option 1: A Lease Deal worked out as follows:
\x09 (Total Cost - £8639.38 over 2 years)
Deposit - £682.34
Monthly Hire - £228*23 = £5224 (23 as first month is the deposit cost)
Admission/ Processing fee - £360.00
Insurance - £800.00 * 2years = £1,600.00
Service - £150 * 3 services = £450.00
Tyres replacement - £100 a tyre = £400.00
Option 2: Buying and Selling a car after 2 years worked out as follows:
\x09 (Total Cost - £10,450.00 – 5,600.00 = £5,350.00 over 2 years)
Car - £8,000.00 (based on various cars inc. 2010+ bmw 1series, bmw 320, c class etc: under 60K mileage)
Insurance - £800.00 * 2years = £1,600.00
Service - £150 * 3 services = £450.00
Tyres replacement - £100 a tyre = £400.00
Contingency/Repairs - £500.00
Value of car after 2 years - £8000.00 *.70 = £5600.00 (based on 15% depreciation per year)
All comments (73)
Any higher mileage leasers around that have made it work?
"Only when the tide goes out do you discover who's been swimming naked." -Warren Buffet
But are you prepared to take the risk that the car wont depreciate more than expected ?
What would have happened say you bought a brand new Golf TDI just before the emissions scandal broke ? you might be looking at depreciation well beyond what expected . Especially now that it is becoming apparent that the fix that VW have implemented is causing more issues .
A safety recall or instances of company actions that could increase depreciation are completely unpredictable .