# Car Leasing? Good? Bad?



## GaryF1 (Jun 4, 2008)

Just been on What Cars website drooling over the new Scirocco and noticed some leasing deals, something I've never really thought of before to be honest as I never really liked the idea of "renting" a car so to speak but it does seem tempting especially the way most car deals at the moment come with a heafty end payment for those without big deposits

Does anyone on here have a car on lease or know of anyone who has a car this way? 

Whats your opinions on the whole thing


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## organgrinder (Jan 20, 2008)

I get asked this question all the time by clients and there is no right answer.

Some of my clients swear by leasing and would never buy a car again but others didn't like it.

At the moment, those who leased cars a year ago rather than buying them, have saved themselves a fortune in depreciation because of the massive drop in used car values. This is one of the main benefits of leasing - you no longer have to worry about depreciation, especially unusually high amounts (although normal depreciation is factored in to the leasing costs).

On the other hand if you lease a car which holds its value really well and you look after it, it may not fall in value much over 2 years and it would have been better to own it (the MK1 new Mini was an example for its first 4 years)

At the end of your lease deal, you just hand the car back. This can be either a positive or a negative since you may just want a change and be happy to give it back or conversely your circumstances may have changed and you might want to keep the car. In most lease deals you don't have a choice although I have seen a bit more flexibility recently.

I would say that if you like to change your car regularly, want to know exactly what it will cost, incl depreciation and don't require flexibility in when and how you change it, leasing is a good option. If you are the type to keep and cherish the car for more than 3 years, then I would be more inclined to buy. If I was buying I would also try to get a 6mth old car and take the sting out of the initial depreciation.


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## sxid (Jan 19, 2008)

^ some excelllent advice there. The only thing that makes me buy new every time and not 6 months later is I am a stickler for running a car engine in and believe that it's still very important for even modern engines. Not many people seem to do this anymore and rag from new which always makes me wonder what the previous owner has treated it like and why they have sold it back to the dealer 6 months after purchase losing thousands in depreciation.


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## richjohnhughes (Sep 24, 2007)

if you get a loan and then sell it before the end of the term ot just at the end, its the same as "renting" if you think about it. the differance with leasing is it much cheaper and you know you will be able to get rid of the cr at the end. 

the key to leasing is pick a car that is going to be worth alot after 3 years or so. 

remember, you can lease a 1 year old car, but often, it doesnt work out thatmuch cheaper.


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## rosscoe (Mar 6, 2007)

organgrinders advice is sound, I lease because it gives me confidence in the running costs for the three years. I have benefitted with the recent drop too (I run a hot hatch)

Mine is maintenance inclusive as well. Before I leased it I did some comparative sums and it appeared slightly more expensive to lease, but I value to security of known monthly costs


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