Mk7 Golf R - Good lease deals..

[Shorty]

Yeah that's it lad.

Can see you in one of these big boy. 

[N8KOW]

Yeah that's it lad.

Can see you in one of these big boy. 

I'll have a mooch around one when they are out! Leasing is the way I'll be going in 2 years or so when I sell the Eddy.

[MAT ED30]

I like the idea of leasing but paying money to rent a car I am not so sure about as you have nothing to show for it after lease is up as you never own it.

[tony_danza]

It's not for everyone, but think of it like this. I'm using joke figures to illustrate a point, but bare with me..

You've got £30k.

You buy a car for £30k cash.
You lease a car for £10k over 2 years and keep £20k in the bank.

At the end of 2 years, the car has depreciated £10k. So, the thing you have 'to show for it' is £20k tied up in a depreciating asset. If you sell it, you get £20k and put it in the bank, putting you in exactly the same position as the leaser.

Either way you've had the use of a car for 2 years, and that costs money.

[tony_danza]

I will point out this isn't a hard and fast rule. BMW/VW/Merc/etc are heavily subsidising cars to get volume out for 2nd hand sales on their forecourts in a couple of years, where they'll bump the price and stiff someone with a high APR deal. So play the game and you get a lot of car for very little money.

Kia et-al won't do this, the last thing they want is your worthless car coming back.

[xjay1337]

Firstly you never actually own the car. While some are OK with that I am very fond of being able to say "something's mine".
As Rich said after 2 years you have NOTHING. You're basically renting a car.
10k a year is simply not enough for the average person who does 200 miles a week that is already 10,400 miles .

The reason they're doing it is simple, it's happening to loads of cars, 135m, BMW M5 F60 or whatever it is (the new stupid one) , Merc AMGs, it's so that in 2 years the market is flooded with fully dealer serviced models with 20k or less on the clock that can easily be flogged on in car dealerships.

If you had NO car now and wanted a new car it would be worth considering but if you have a car already you're basically paying for a really expensive taxi service .

Its no different to most PCP agreements. Except they usually cost more, with bigger deposits. The money you spend on leasing it, will be comparable to the depreciation (well, a little higher) but these companies buy in bulk to receive competitive discounts. Its not an issue, you are not looking at it in the right way.

Also, the mileage can be adjusted. You have to just ask for a quote.

The reason they are so CHEAP is because they are such a low mileage.
Get a quote for one at 15k a year.
 

[tony_danza]

The lease on 15k miles p/a is directly proportional to the depreciation effect of doing 30k in 2 years compared to 20k.

The value of your private car suffers in exactly the same way.

I find this an odd argument.

[rich83]

In some ways I might be better off PCPing cars as its 100% tax deductible. Would mean selling the eddie tho 

[N8KOW]

Yes Tony has illustrated it very well. Your just managing a loss at the end of the day, its a bloody good way of "owning" a £31k without paying £31k if that makes sense 

It isn't for everyone.

[simonp]

It's not for everyone, but think of it like this. I'm using joke figures to illustrate a point, but bare with me..

You've got £30k.

You buy a car for £30k cash.
You lease a car for £10k over 2 years and keep £20k in the bank.

At the end of 2 years, the car has depreciated £10k. So, the thing you have 'to show for it' is £20k tied up in a depreciating asset. If you sell it, you get £20k and put it in the bank, putting you in exactly the same position as the leaser.

Either way you've had the use of a car for 2 years, and that costs money.

Let's be honest, though. Most people who do this DON'T have the £30K in the bank they just want everyone to think they own a brand new £30K car, when in fact they couldn't actually afford one!

[Beddie]

Let's be honest, though. Most people who do this DON'T have the £30K in the bank they just want everyone to think they own a brand new £30K car, when in fact they couldn't actually afford one!

Absolute rubbish....

How about those people with 30k plus plenty more in the bank, let's take a premiership footballer or someone in top flight business for example, do you honestly believe they are dropping 250k cash into the latest supercar to run around in for 6 months and lose a load on a fast depreciating assest? I think not....
Let's take Shrek Rooney for example, in your eyes if he rents a 100K range rover for a year he's only doing it because he can't afford to buy it cash, highly unlikely  

Lower down the scale for joe normal, a colleague at work has just leased a Renault captur for 2 years as a second family runaround, list price is £16K and I know for a fact he could have dropped the cash for it but he's smart with his money so rented it for basically the cost of the depreciation over 2 years, why throw your capital into something if your money can work for you better elsewhere? Cash is hard to come by, cheap credit isn't t  

I'd like to throw this out there, are you a homeowner? Did you save up to buy your 250K home with cash or do you have a mortgage and just making everyone think you can afford the house..?
And if mortgaged and you believe you 'own' your house, stop making payments and I'll give it 6 months before you find out who really owns it 

[Itsagthing]

All relevant guys and a great deal I would never buy a new car again, but on the other hand if you map it or mod it keep the parts to put back on it because it's not your car ;)

[simonp]

That footballer analogy is crap. They're nearly all thick as pigsh*t and would definitely go out and splash all that cash on a car if they didn't have an expensive accountant advising them not to. Plus, they could afford to give the car away to a relative afterwards rather than hand it back, as they make so much money these days!

I am a homeowner, yes. And a car owner, not renter. I do have a mortgage on my 4 bed detached house, but it is less than 10% of the house's value and the only reason I've not paid it off is because of the rate of interest I'm paying is so low (0.5% above base rate) that I reckon I'm better off keeping it going. It can only help my credit score, even though I don't currently have (or want) any...

[richtung]

Let's be honest, though. Most people who do this DON'T have the £30K in the bank they just want everyone to think they own a brand new £30K car, when in fact they couldn't actually afford one!

Absolute rubbish....

How about those people with 30k plus plenty more in the bank, let's take a premiership footballer or someone in top flight business for example, do you honestly believe they are dropping 250k cash into the latest supercar to run around in for 6 months and lose a load on a fast depreciating assest? I think not....
Let's take Shrek Rooney for example, in your eyes if he rents a 100K range rover for a year he's only doing it because he can't afford to buy it cash, highly unlikely  

Lower down the scale for joe normal, a colleague at work has just leased a Renault captur for 2 years as a second family runaround, list price is £16K and I know for a fact he could have dropped the cash for it but he's smart with his money so rented it for basically the cost of the depreciation over 2 years, why throw your capital into something if your money can work for you better elsewhere? Cash is hard to come by, cheap credit isn't t  

I'd like to throw this out there, are you a homeowner? Did you save up to buy your 250K home with cash or do you have a mortgage and just making everyone think you can afford the house..?
And if mortgaged and you believe you 'own' your house, stop making payments and I'll give it 6 months before you find out who really owns it 

Not disagreeing in what you are saying about home ownership and mortgages Beddie - 99% of us homeowners have mortgages and is a fact of life that most people couldn't own a home without one. Its not fair to compare having a mortgage and leasing a car as you are unlikely to "buy" a new house every 2 years.

I think the point Simponp was making were about people who cannot afford a new, top of the range car yet like to give the impression they can and not only that, they could afford a new, top of the range car every 2-3 years. I know plenty of people like this - they don't lease cars because they have calculated the cost benefits, they do it because its an affordable way for them to drive (not own) a new top of the range car.

Rich

[SRC]

If I wanted a £30k car, I'd use one of these schemes.  It makes better financial sense to finance only the depreciation (£11k), rather than the whole £30k. 

The remaining £19k can sit in my offset mortgage, so I pay less in mortgage interest.  Win win.

But, actually, I don't want to blow even £11k in three years on depreciation, so I'll stick with my Mk5 and invest the £11k on something that'll be worth more than £11k in 36 months time rather than zero.