Car Leasing - Worth It?

16
Found 5th Jul
I currently own my Hyundai i20, which I bought in 2009. Over the years it has had its fair share of problems (including an overheating episode a few years ago, which - including issues with brakes and steering column - set me back almost £2000!). Now it is starting to suffer problems starting, possibly due to a bad fuel pump or blockage somewhere. Regardless, it will be a few hundred pounds to get right.

So, I'm thinking of saying goodbye to my poor Hyundai, and I am looking into my options. I have seen many deals here for leasing cars, which sounds interesting, and I am interested to find out what peoples experiences are. Whilst I have looked after my car, it has had a few nicks and scratches, mainly caused by other people - so what would happen if took the leased car back with a couple of scratches?

Any tips, or "gotchas", when looking to lease a car?
Community Updates
AskHome & GardenCar
16 Comments
Theres a standard for car return. content.yudu.com/web…tml
But each lease company should provide you with that and a price matrix for repairs.

Some companies are better than others. anecdotally mercedes are difficult

There is always huge debate about the pros and cons of lease vs purchase new vs purchase used vs pcp etc. There isnt a 'best' answer - it depends on you, your attitudes and needs and financial situation.
Decent lease deals were around the 20-25% mark of the value of the car being paid over two years and giving you about 8 to 10k miles a year. When you bought you Hyundai the base price for the i20 would have been about £10k, so a lease would have been about £2000-2500 over the two years. So for you to pay £2000 to fix a car outside of its 5 year warranty you could of had a brand new i20 for two years.
I've got mine on hire purchase because I liked the idea of owning it once paid for it, I used my old car in part exchange and they usually aren't too bothered about condition too much as they usually just auction them or have a mates rate deal with mechanics etc. Mine had a faulty fuel pump and they were fine with that as I had already ordered a new pump for it.

Lease is ok if you like changing cars every 3 or so years but you'll have nothing to show for it in the long run.

I'd never buy a brand new car as the depreciation is unreal, A nearly new second hand car probably offers best value if you want a new one. Although I would consider a Dacia if I was paying cash as they can be bought new for under £7k!

Or just run around in an old banger and pay to fix any problems with it.

Example £1K car + £2k worth of maintenance is far less than you'd pay on a typical lease deal or hire purchase etc..

Or just buy a £500 car that's got a long MOT, If it goes faulty scrap it for £200 and buy another £500 car with a long MOT.
Edited by: ".MUFC." 6th Jul
MIDURIX1 h, 16 m ago

Decent lease deals were around the 20-25% mark of the value of the car …Decent lease deals were around the 20-25% mark of the value of the car being paid over two years and giving you about 8 to 10k miles a year. When you bought you Hyundai the base price for the i20 would have been about £10k, so a lease would have been about £2000-2500 over the two years. So for you to pay £2000 to fix a car outside of its 5 year warranty you could of had a brand new i20 for two years.


Forgetting about ridiculous extra costs at the end. £150 for a scratch I think my father paid when he leased, and other similar amounts.
.MUFC.1 h, 44 m ago

I've got mine on hire purchase because I liked the idea of owning it once …I've got mine on hire purchase because I liked the idea of owning it once paid for it, I used my old car in part exchange and they usually aren't too bothered about condition too much as they usually just auction them or have a mates rate deal with mechanics etc. Mine had a faulty fuel pump and they were fine with that as I had already ordered a new pump for it.Lease is ok if you like changing cars every 3 or so years but you'll have nothing to show for it in the long run. I'd never buy a brand new car as the depreciation is unreal, A nearly new second hand car probable offers best value if you want a new one. Although I would consider a Dacia if I was paying cash as they can be bought new for under £7k!Or just run around in an old banger and pay to fix any problems with it.Example £1K car + £2k worth of maintenance is far less than you'd pay on a typical lease deal or hire purchase etc.. Or just buy a £500 car that's got a long MOT, If it goes faulty scrap it for £200 and buy another £500 car with a long MOT.


This way is the best, having a car that's a banger frees you from worry. You don't brake when people pull out on you. You don't care about curbing the wheels or watching a trolly in the asda car park hit it at high speed.
Buying a second hand (1-2year old car) vs new car on PCP or cash. Having recently replaced my ageing Ford Fiesta with a focus I did a lot of research, I usually find buying a 1-2 year old car the best option for price and do this however this time I found it was better value to buy a brand new one. The cost saving on buying 1-2 year old with minor scratches etc was about £500 vs a brand new one after taking into account the PCP was 0% vs a bank loan at 3.9%. My advice is do the numbers don’t assume a 1-2 year old car is cheaper because it wasn’t for me.
Just remember 2nd hand car warranties are usually not worth the paper they are written on, I recently purchased a brand new Dacia Sandero for £5995, 3 years manufacturers warranty, 3 years breakdown cover and no MOT for 3 years, very economical, cheap insurance, does what I need and ask of it, just gone over 30,000 miles, not needed to top up the oil and water, only wear and tear item so far is a new set of front tyres at 27.000 miles.

You will pay around 6k to lease car, at least with the Dacia option I will have something to keep after 3 years, also no milage restrictions when it's your car. Many leases are under 5,000 per year, I have done 30.000 in 18 months so a lease would be no good for me.
Edited by: "SOUTHWALES" 6th Jul
Leased a golf from VW finance no issues on return. They were better than expected on minor damages.

Look on BVLRA for what constitutes chargeable damage
Would lease again
SOUTHWALES2 h, 55 m ago

Just remember 2nd hand car warranties are usually not worth the paper they …Just remember 2nd hand car warranties are usually not worth the paper they are written on, I recently purchased a brand new Dacia Sandero for £5995, 3 years manufacturers warranty, 3 years breakdown cover and no MOT for 3 years, very economical, cheap insurance, does what I need and ask of it, just gone over 30,000 miles, not needed to top up the oil and water, only wear and tear item so far is a new set of front tyres at 27.000 miles.You will pay around 6k to lease car, at least with the Dacia option I will have something to keep after 3 years, also no milage restrictions when it's your car. Many leases are under 5,000 per year, I have done 30.000 in 18 months so a lease would be no good for me.


Ford PCP goes up to 25k (just for info)
.MUFC.17 h, 17 m ago

Although I would consider a Dacia if I was paying cash


You're dead to me
deeky4 m ago

You're dead to me




"I would consider", Very important context. After consideration I probably wouldn't buy one but they're still great value.
.MUFC.4 m ago

"I would consider", Very important context. After consideration I probably …"I would consider", Very important context. After consideration I probably wouldn't buy one but they're still great value.


I suppose they're ok for an old couple who are just going to run it into the ground. But If you're gonna buy one for £7k you might as well lease a nice one for 2 years for the same or less. They would both be worth the same after 2 years - ie nothing
deeky7 m ago

I suppose they're ok for an old couple who are just going to run it … I suppose they're ok for an old couple who are just going to run it into the ground. But If you're gonna buy one for £7k you might as well lease a nice one for 2 years for the same or less. They would both be worth the same after 2 years - ie nothing


I'd give you a pack or Doritos for a 2 year old Dacia ;).
I am on my second lease car and the wife is on her first lease car.

It makes sence to us as we are not wanting to get stuck in a 5 year deal to buy a new car.

Look for the deals and hopefully you will get lucky
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants