New car ordered.

[whytie]

I understand you are getting yourself in a brand new car for lower monthly payments, but you never make any money or build yourself some equity, if your willing to wait some years you can build up equity,

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up, next I got an evo x for 14k, 10k loan over 4 years, my plan was to keep for the 4 years and Evos at the age it would be when paid off are still going for 8.5-11k, this would have been all mines to plough into another car in a similar scenario,

I had to sell that though as I wanted to raise money for other things so bought the gti to run for a couple of years,

Now none of my cars would ever be brand new but I just feel if I leased I'm just basically renting, much like getting a house renting and paying someone else's mortgage, I could maybe understand if you are getting a top car like a brand new m3, m4, something that I could never afford brand new for £350-400 per month,

[rosco07]

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up,

Or another way of looking at it is you were £8.5k +  interest payments on the finance down on a used £12.5k car.  Based on the above figures the interest charges appear to be a £2-3k.  The OP is going to be around £9k down over 3 years on a new £25k+ car.

Horses for courses!

[mac456]

I understand you are getting yourself in a brand new car for lower monthly payments, but you never make any money or build yourself some equity, if your willing to wait some years you can build up equity,

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up, next I got an evo x for 14k, 10k loan over 4 years, my plan was to keep for the 4 years and Evos at the age it would be when paid off are still going for 8.5-11k, this would have been all mines to plough into another car in a similar scenario,

I had to sell that though as I wanted to raise money for other things so bought the gti to run for a couple of years,

Now none of my cars would ever be brand new but I just feel if I leased I'm just basically renting, much like getting a house renting and paying someone else's mortgage, I could maybe understand if you are getting a top car like a brand new m3, m4, something that I could never afford brand new for £350-400 per month,

Your logic is wrong, You were never up, the car cost you £8.5k (so you were down £8.5k plus interest)

there is nothing wrong with leasing if you can afford the payments as when you buy a new car you will nearly always everytime lose money wherever you buy in cash, loan, finance, lease because the car loses value.

[vaheedakhtar]

I understand you are getting yourself in a brand new car for lower monthly payments, but you never make any money or build yourself some equity, if your willing to wait some years you can build up equity,

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up, next I got an evo x for 14k, 10k loan over 4 years, my plan was to keep for the 4 years and Evos at the age it would be when paid off are still going for 8.5-11k, this would have been all mines to plough into another car in a similar scenario,

I had to sell that though as I wanted to raise money for other things so bought the gti to run for a couple of years,

Now none of my cars would ever be brand new but I just feel if I leased I'm just basically renting, much like getting a house renting and paying someone else's mortgage, I could maybe understand if you are getting a top car like a brand new m3, m4, something that I could never afford brand new for £350-400 per month,

But you fail to mention how much you have spent on repairs, services, MOT's and tyres and road tax?

For the 2 cars you have mentioned, I reckon in the region of £5,000 over 5 years. Minimum. So not only have you paid interest on your loan, but you've got additional costs which I won't have on a leased car.

[gtgeorge]

friend of mine is paying just shy of £300 a month to lease a merc 

[whytie]

I understand you are getting yourself in a brand new car for lower monthly payments, but you never make any money or build yourself some equity, if your willing to wait some years you can build up equity,

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up, next I got an evo x for 14k, 10k loan over 4 years, my plan was to keep for the 4 years and Evos at the age it would be when paid off are still going for 8.5-11k, this would have been all mines to plough into another car in a similar scenario,

I had to sell that though as I wanted to raise money for other things so bought the gti to run for a couple of years,

Now none of my cars would ever be brand new but I just feel if I leased I'm just basically renting, much like getting a house renting and paying someone else's mortgage, I could maybe understand if you are getting a top car like a brand new m3, m4, something that I could never afford brand new for £350-400 per month,

Your logic is wrong, You were never up, the car cost you £8.5k (so you were down £8.5k plus interest)

there is nothing wrong with leasing if you can afford the payments as when you buy a new car you will nearly always everytime lose money wherever you buy in cash, loan, finance, lease because the car loses value.

Ok I worded that wrong, at the end of the vxr I had 4k to play with, where as leasing you will be left with Nout to play with,

What I was getting at was should I have continued with the evo in 3 years time I would have no payments left to make and a 10k easily car sitting there, of course you lose money on interested, depreciation etc, but someone else continues leasing and they've went through 2/3 cars in the same time as me and have no equity stored and are looking to go again, I have 10k to do something,

That 10k could allow me for example to go for a 25 - 30k used car, it would then be worth say 12.5-15k after the 4/5 years loan, and go again

[whytie]

[/quote]

But you fail to mention how much you have spent on repairs, services, MOT's and tyres and road tax?

For the 2 cars you have mentioned, I reckon in the region of £5,000 over 5 years. Minimum. So not only have you paid interest on your loan, but you've got additional costs which I won't have on a leased car.


[/quote]

That's a very good point, so with leasing you get all your consumables paid? I.e tyres and brake discs/pads? What make tyres do you get?

Repairs I was lucky that on the vxr I had very little go wrong, mot's £35, services around £150-200 per year (I always get my own done)

The evo I was not so lucky my ayc pump went and cost me £800 lol, tax was £500 on that thing,

I can see the point to leasing for a car generally someone couldn't afford but everyone being petrol heads not being able to mod it must be a killer

[mac456]

I understand you are getting yourself in a brand new car for lower monthly payments, but you never make any money or build yourself some equity, if your willing to wait some years you can build up equity,

My own example, I started with an Astra vxr I bought in 2009 for £12.5k over 5 years, I owned it for 4 and a bit years sold for around 7k and owed £3k at that point, so technically I was £4k up, next I got an evo x for 14k, 10k loan over 4 years, my plan was to keep for the 4 years and Evos at the age it would be when paid off are still going for 8.5-11k, this would have been all mines to plough into another car in a similar scenario,

I had to sell that though as I wanted to raise money for other things so bought the gti to run for a couple of years,

Now none of my cars would ever be brand new but I just feel if I leased I'm just basically renting, much like getting a house renting and paying someone else's mortgage, I could maybe understand if you are getting a top car like a brand new m3, m4, something that I could never afford brand new for £350-400 per month,

Your logic is wrong, You were never up, the car cost you £8.5k (so you were down £8.5k plus interest)

there is nothing wrong with leasing if you can afford the payments as when you buy a new car you will nearly always everytime lose money wherever you buy in cash, loan, finance, lease because the car loses value.

Ok I worded that wrong, at the end of the vxr I had 4k to play with, where as leasing you will be left with Nout to play with,

What I was getting at was should I have continued with the evo in 3 years time I would have no payments left to make and a 10k easily car sitting there, of course you lose money on interested, depreciation etc, but someone else continues leasing and they've went through 2/3 cars in the same time as me and have no equity stored and are looking to go again, I have 10k to do something,

That 10k could allow me for example to go for a 25 - 30k used car, it would then be worth say 12.5-15k after the 4/5 years loan, and go again

So say you eventually get upto £20k "equity" and decided to buy a new car, what is going to happen to that equity after 3 years? you would have lost 7k (approx) when it comes to sell, pretty much the same as OP with his lease but he doesn't have £13k invested in the car, he has it in his bank account where you have to sell the car.

You are comparing used cars to brand new cars.... OP doesnt want a used car.

[cashmang]

i don't know much about leasing cars, so what happens at the end of the contract if you don't have a deposit for a new car - can you extend the lease on the existing car?

Hi, I work in leasing (not vehicle leasing but same principle) it all depends on the type of lease and of course the terms of the contract.

[vaheedakhtar]

But you fail to mention how much you have spent on repairs, services, MOT's and tyres and road tax?

For the 2 cars you have mentioned, I reckon in the region of £5,000 over 5 years. Minimum. So not only have you paid interest on your loan, but you've got additional costs which I won't have on a leased car.


[/quote]

That's a very good point, so with leasing you get all your consumables paid? I.e tyres and brake discs/pads? What make tyres do you get?

Repairs I was lucky that on the vxr I had very little go wrong, mot's £35, services around £150-200 per year (I always get my own done)

The evo I was not so lucky my ayc pump went and cost me £800 lol, tax was £500 on that thing,

I can see the point to leasing for a car generally someone couldn't afford but everyone being petrol heads not being able to mod it must be a killer
[/quote]

This is where the term of lease is crucial. Im leasing for 2 years. A 3 year standard warranty covers any mishaps. No MOT is due until it's 3 years old. The car shouldn't need pads, disc or tyres in the 20,000 m/pa agreed mileage.  Tax is paid for as well.

I'm shifting my bluefin over from my GTi. Because I didn't buy it until Nov last year, I can still have a free change of maps from superchips. Untraceable.

[Frenzy]

i don't know much about leasing cars, so what happens at the end of the contract if you don't have a deposit for a new car - can you extend the lease on the existing car?

Hi, I work in leasing (not vehicle leasing but same principle) it all depends on the type of lease and of course the terms of the contract.

Thanks for taking time out to answer my question, Cashmang 

[mortygttdi]

But you fail to mention how much you have spent on repairs, services, MOT's and tyres and road tax?

For the 2 cars you have mentioned, I reckon in the region of £5,000 over 5 years. Minimum. So not only have you paid interest on your loan, but you've got additional costs which I won't have on a leased car.

That's a very good point, so with leasing you get all your consumables paid? I.e tyres and brake discs/pads? What make tyres do you get?

Repairs I was lucky that on the vxr I had very little go wrong, mot's £35, services around £150-200 per year (I always get my own done)

The evo I was not so lucky my ayc pump went and cost me £800 lol, tax was £500 on that thing,

I can see the point to leasing for a car generally someone couldn't afford but everyone being petrol heads not being able to mod it must be a killer
[/quote]

This is where the term of lease is crucial. Im leasing for 2 years. A 3 year standard warranty covers any mishaps. No MOT is due until it's 3 years old. The car shouldn't need pads, disc or tyres in the 20,000 m/pa agreed mileage.  Tax is paid for as well.

I'm shifting my bluefin over from my GTi. Because I didn't buy it until Nov last year, I can still have a free change of maps from superchips. Untraceable.
[/quote]

Bluefin leaves a signature on the ecu...one thing though speak to Jamie he can reset your bluefin over the internet same has when your downloading a new map

[flashp]

Leasing suits some but not all. For business owners/self employed types I daresay it's advantageous. For others it may just be the only way to put a new car on the drive and that may be important to them for their own reasons so 

The general mentality to HP for example is 'can I afford the monthly payments?' If yes then most go ahead. Very few dig deeper. For example...£18k car replaced every 3 years with a car of the same value. After 3 years car is sold/part ex for lets say £11k. So, if you can afford to lose £21k every 9 years (3 vehicle changes) then you can afford a new car. I'm sure this attitude manifests when some consider lease deals. The mk7 R 'sole trader' loophole probably bought many of these types to their nearest dealer clamoring to sign a lease deal who probably chopped in their current steed + cash back to them for their deposit so they might go away with £5k+ in their pocket and a new motor.

In a great many of the threads I've read about this very few (if any) talk of the required deposit they've had to put down. Most people don't get past discussing the monthly £'s required.

Ultimately the perceived ridiculousness may in fact be an indicator of how unsuitable these deals may be to an individual. For some the reverse will be true.

None of this is respect to the OP. His own circumstances are his business. 

[paulw123]

well said that man