Current Affairs Cost of living…

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Eiffel 65 said:
Yeah you can do it.

https://www.moneysupermarket.com/car-leasing/used-car-leasing/

But yeah I know most are from new.

If you're comfortable writing off a perpetual monthly payment to cover those costs of having access to a serviceable vehicle then why not. But since this was a cost of living thread I thought the steep financial comparison was relavent.

Excluding inflation, deposits and settlement values which would be too variable to consider:

Lets say a ballpark lease monthly cost of a given German car worth £40k is £400. Times by 36 months = £14,400, or £4,800 per year.

Then consider a similar class and brand of vehicle that had a new price of around £40K, but is now 6 years old will have depreciated around 70% from new so have a value of approx £12K on 6 year used purchase. Assuming you wish to keep the car for a 3 year period and do around 12k miles per year, the value of the 9 year old car would be around £8K. So an £4K depreciation cost over the three years plus any servicing which is variable.... But if you can do some work yourself, a three year period would involve oil and filter changes, coolant changes, brake pad changes, all stuff that you can learn and do at home. Lets include a new set of tyres. Probably looking at no more than £700 over the three years. So a cost of £4700 over the three years or around £1500 per year.

It's basically three times more expensive to own a new car over a three year period on lease than to outright buy a similar 6 year old car over a three year period.

And if you keep the six year old car any longer than the three years, then the average depreciation of the car per year comes down even further still until it eventually bottoms out at around 10% of it's value at new after around 16 years. Assuming you can keep on top of maintenence cost effectively, this is the place to be for maximum cost/car ratio!

Of course anyone who is into their motors would be willing to have a higher expenditure to enjoy the vehicle of their choice, but I think for the average 20 something earning £25K per year, it must limit so many other areas of their life just to commute in 1.8D German car with a fancy screen.
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But you’re driving a six year old car ?

There are lots of advantages to driving a brand new car for three years over a six to then nine year old vehicle. Your numbers aren’t taking into account any repair costs, which doing 36000 miles on a six year old car over three years seems a bit ambitious.

It’s not really saving money one vs the other as you are buying a totally different product.

Leasing is actually getting more attractive in the era of high interest rates which make a personal loan or PCP deal significantly more expensive.
 
Brennan said:
But you’re driving a six year old car ?

There are lots of advantages to driving a brand new car for three years over a six to then nine year old vehicle. Your numbers aren’t taking into account any repair costs, which doing 36000 miles on a six year old car over three years seems a bit ambitious.

It’s not really saving money one vs the other as you are buying a totally different product.

Leasing is actually getting more attractive in the era of high interest rates which make a personal loan or PCP deal significantly more expensive.
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I've had plenty of used 5 year plus cars that have basically only needed servicing, MOT and wear items replaced. And I do 12000 + per year.

Absolutely does stack up on a finance perspective if you buy the right car and look after it.
 
Brennan said:
But you’re driving a six year old car ?

There are lots of advantages to driving a brand new car for three years over a six to then nine year old vehicle. Your numbers aren’t taking into account any repair costs, which doing 36000 miles on a six year old car over three years seems a bit ambitious.

It’s not really saving money one vs the other as you are buying a totally different product.

Leasing is actually getting more attractive in the era of high interest rates which make a personal loan or PCP deal significantly more expensive.
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My point is that generally, buying a 6-8 year old car is where the best value is to be had, and this is particularly true when it comes to luxury badged cars.

Sure, there's advantages people consider when buying or leasing a brand new car otherwise no one would ever buy them...Warranty cover or maintenance package, slightly improved fuel economy, latest tech, more modern styling, and (perhaps most commonly) looking richer than we actually are.

Thats all good stuff, but is it worth the premium when compared with an older vehicle to the average consumer of these products?

Here's a photo of some diesel engine Audi A3s with S-line trim. One is from 2022 and one is from 2016. One is £33,000 or the lowest I could find £300/month lease, and the other can be had for £10,000 with 60K miles in very good condition on Autotrader. Without looking at the reg, can you tell which one is which? I honestly couldn't, although I'm not an Audi fanboy.




audi pic.webp
 
My Nutty Slack has gone up 100 percent.......
Boris wants windmills in the country side .......needs heat to make them .....plus noise pollution.....
Food has definitely gone up
Street lights are definitely dimmer this winter ....
A cold winter may lead to blackouts
Other than that it's grin & bear it .....
 
Eiffel 65 said:
My point is that generally, buying a 6-8 year old car is where the best value is to be had, and this is particularly true when it comes to luxury badged cars.

Sure, there's advantages people consider when buying or leasing a brand new car otherwise no one would ever buy them...Warranty cover or maintenance package, slightly improved fuel economy, latest tech, more modern styling, and (perhaps most commonly) looking richer than we actually are.

Thats all good stuff, but is it worth the premium when compared with an older vehicle to the average consumer of these products?

Here's a photo of some diesel engine Audi A3s with S-line trim. One is from 2022 and one is from 2016. One is £33,000 or the lowest I could find £300/month lease, and the other can be had for £10,000 with 60K miles in very good condition on Autotrader. Without looking at the reg, can you tell which one is which? I honestly couldn't, although I'm not an Audi fanboy.




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Really depends on the specific situation.

As an example, I’m in the process of sending back my A4 lease car, to replace it with a Citroen EV lease. Don’t think people will think I’m rich driving a Citroen sadly :(
 
EVs
Brennan said:
Really depends on the specific situation.

As an example, I’m in the process of sending back my A4 lease car, to replace it with a Citroen EV lease. Don’t think people will think I’m rich driving a Citroen sadly :(
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Ev's are a spanner in the works of the used car vs new car debate for sure. The confidence in useable battery longevity just isn't there yet for older models. Some of the salary sacrifice schemes available to lease an EV are worthy of consideration no doubt.
 
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Eiffel 65 said:
EVs

Ev's are a spanner in the works of the used car vs new car debate for sure. The confidence in useable battery longevity just isn't there yet for older models. Some of the salary sacrifice schemes available to lease an EV are worthy of consideration no doubt.
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Those battery cars are not the future....... another Government con .....
 
navidson said:
This might be the most derailed i've ever seen a thread get on here (Certainly without Davek being involved anyway)
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Personal transport has a place in a cost of living discussion surely? It's a time of necessities.

We all need somewhere to live
We all need to eat
Most of us need some form of energy
Most of us need some way of getting to work to pay for all of above
 
Eiffel 65 said:
Personal transport has a place in a cost of living discussion surely? It's a time of necessities.

We all need somewhere to live
We all need to eat
Most of us need some form of energy
Most of us need some way of getting to work to pay for all of above
Click to expand...
Most people are currently worried about putting their heating on and whether they can put food on the table

Deciding whether to purchase an Electric Car or not is the last thing on most people's minds
 
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