Hearthly wrote:
I looked into leasing when I bought the i30-N and quickly realised it made no sense (in fact, I believe some BEEX-ers told me it was a stupid idea when I mentioned it here).
Leasing appears to be for people who can't afford to buy a car (but can manage a deposit), you pay out a shitload of money in what are effectively rental charges, and at the end of it you don't have a car - plus it's never even your car as you have to give it back at the end of the lease agreement.
I crunched the numbers on the i30-N and the overall costs over three years (factoring in depreciation) worked out the same, except that with buying it I had a car at the end of three years.
Sometimes there are super-cheap deals to be had on leasing, but they tend to be on less desirable cars or where manufacturers have end of line models or stock surpluses they want to get rid of, which seems unlikely in the current market.
Here were my sums from the time (EDIT - my figures on depreciation through owning were pessimistic too):
To buy the car costs £28K, and at the end of four years I have a car that's worth, let's say £10K. I can put £12K cash in, plus £10K trade in, so I only need to finance £6K and I can borrow money off the bank at 3.3% APR. (And TBH, with a bit of a stretch I could put the full £18K cash in so no finance at all.)
To lease the car costs £21K in total over four years, and at the end of it I have no car.
Am I not £3K worse off by leasing? Sorry if I'm being dense here but I thought leasing was supposed to offset the cost of depreciation, which doesn't seem to be happening here, and either way I get a new car at the start of it.
I think leasing has moved on. I did not need to provide a deposit. Just 36 monthly payments.
So for me I am getting a 40k car for quite cheap rental.
I don’t have a 10k part ex so your figures don’t wok for me.