Why do people Lease cars?

101
Found 1st Mar
I wondered why people choose to lease a car when buying one is so much more cost effective in the long run?

Are people really that bothered about having a new car?

I have 2 cars and 1 is 25 years old (cost £250), the other is 15 years old (cost £1800)

I'm not looking to criticise anyone's personal choice, i just wanted to hear peoples opinions/information on the matter.
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Because people don't want inefficient, outdated technology that's 25 and 15 years old.
Simple.

Because some people like to drive a nice new car and are prepared to pay for it. They might want to change to another new one every 2 or 3 years and leasing costs less than the depreciation on a new car would.
Why do people choose to rent a villa when buying one is so much more cost effective in the long run?
101 Comments
Because people don't want inefficient, outdated technology that's 25 and 15 years old.
Simple.

Because some people like to drive a nice new car and are prepared to pay for it. They might want to change to another new one every 2 or 3 years and leasing costs less than the depreciation on a new car would.
Its a debate had hundreds of times on here, on every lease deal and you wont reach the bottom of it.

But a few things:
If the cost of depreciation outweighs the cost of a lease for a new car then you would use a lease (if you want to swap after say 2/3 years).
New cars dont require MOT's and faults are generally covered under warranty, which wont be the case for a 25 year old car.
A new car will be more reliable, efficient and generally safer tjan older cars.
Technology has moved on alot in 25 years, people want new things.
People dont want the hassle of having to sell the car themselves after a couple of years.
Its generally easier to get a payment plan for lease than buying outright (although its not much different these days).
Cost of servixing will be less for newer cars and chance of tjem breaking down is less.

Thats a few points im sure theres alot more. We cant compare a new car with a 25 year old one and expect it to cost the same.
Why do people choose to rent a villa when buying one is so much more cost effective in the long run?
2 Reasons

1, Vanity. I used to work with a girl who leased, Quite simply she wanted a new car no other reason. Meant she could drive a BMW and not a ford KA as not prepared to save.

2,Company Pay for it
I run both, Leased car for the mrs, as its easy fixed cost motoring with no servicing costs, and fits her work scheme thing where you have to have a car no older than 3 years.

Mine is 12 years old, and has hit the bottom of the depreciation curve and now seems to be creeping back up a bit, I bought for 15k, 4 years ago and reckon I could easy get 17k for it now, but I do budget 1-1.5k a year for repairs and maintenance.
I don't know anything about lease cars, apart from what I've learned from the above comments, but I noticed that no one seems to be factoring in insurance.
Why when you can not have the higher possibility of breaking down on the motorway in an old car with high running costs. Then a car that is less likely to break down, newer and you can show off to your mates the new B1tchin ride you just got!
Baldy197211 m ago

2 Reasons1, Vanity. I used to work with a girl who leased, Quite simply …2 Reasons1, Vanity. I used to work with a girl who leased, Quite simply she wanted a new car no other reason. Meant she could drive a BMW and not a ford KA as not prepared to save.2,Company Pay for it


Is there anything wrong with (1) in your view? Maybe she didn't want to save? Maybe she didn't want to wait? And what's wrong with wanting to drive a BMW instead of a Ford Ka? I think most people would, but some are happy to pay for it as I said in my earlier comment.
Predikuesi2 m ago

I don't know anything about lease cars, apart from what I've learned from …I don't know anything about lease cars, apart from what I've learned from the above comments, but I noticed that no one seems to be factoring in insurance.


Insurance is a factor in every car. It doesn't make a difference whether it's leased or owned, it still has to be paid.
deeky2 m ago

Insurance is a factor in every car. It doesn't make a difference whether …Insurance is a factor in every car. It doesn't make a difference whether it's leased or owned, it still has to be paid.


True, but I'm wondering how much more I'd have to pay to insure a lease car compared with the £289 I recently paid to insure my car (fully comp).
I remember Eddie Irvine extolling the health giving properties of the Monaco climate as being the reason so many tax exiles live there. Seems that a few of the responses here merit the same scoff.

It's a choice and thank goodness we can still make them. When Dalai Jezza the Quisling and his mate John the Marxist come to power, choice will be something we look back on with fond memory as we wonder how the electorate could ever have been so stupid. But back to topic;
.
I would greatly prefer to drive a new car every 3 years rather than own one that is 5, 6, 7, 8 or the current 9 years old. So much new tech. So many jealous stares. Fewer worries about bills. The car I want to drive I can't afford for cash (£50k+) but because depreciation is so low, I can afford the monthly payments so that makes leasing an apparently easy decision.

I'm also smart enough to know that these loan deals are a con and the roll over debt from the final payments is building and will cause problems very soon. That's a topic you can Google and read any article from a decent source. The sad news is that car loans will take over from PPI as the next misspelling scandal and the prols will probably be able to claim their money back + interest despite their own cretinicity in being led down that route by the lenders.

I know my work is up and down. When I am down, we tighten the belt. The last thing I want to worry about is the monthly car payment. Owning my own mid range car, that I buy 6 months old from Motorpoint with 40% discount on new price, is far cheaper in the long run by which I mean anything kept above 3 years.

So it's a choice thing. And it proves that giving some people a choice is perhaps not the wisest thing to do.
Predikuesi4 m ago

True, but I'm wondering how much more I'd have to pay to insure a lease …True, but I'm wondering how much more I'd have to pay to insure a lease car compared with the £289 I recently paid to insure my car (fully comp).


Yeah, I know

You'd be surprised though. I've only leased once, this one:


hotukdeals.com/dea…041


List price about £34k, 300bhp = £520 fully comp insurance.


Current car: lightly modified 2007 Skoda Fabia vRS, 165bhp and worth approx £3k = fully comp insurance - £600.


Go figure.
deeky16 m ago

Is there anything wrong with (1) in your view? Maybe she didn't want to …Is there anything wrong with (1) in your view? Maybe she didn't want to save? Maybe she didn't want to wait? And what's wrong with wanting to drive a BMW instead of a Ford Ka? I think most people would, but some are happy to pay for it as I said in my earlier comment.



deeky16 m ago

Is there anything wrong with (1) in your view? Maybe she didn't want to …Is there anything wrong with (1) in your view? Maybe she didn't want to save? Maybe she didn't want to wait? And what's wrong with wanting to drive a BMW instead of a Ford Ka? I think most people would, but some are happy to pay for it as I said in my earlier comment.


All depends on situation, I know how much she was earning, and for me it was barmy to spend £XXX a month on a car they she couldn't afford to actually use. But looked good
What the problem with it is education, and why we have a society that's billions in debt. A 5 year old is no more unreliable in many cases to a new one, and in some cases all the faults have all been repaired whilst under warranty so its more reliable,(seen this many times).
Baldy19729 m ago

All depends on situation, I know how much she was earning, and for me it …All depends on situation, I know how much she was earning, and for me it was barmy to spend £XXX a month on a car they she couldn't afford to actually use. But looked goodWhat the problem with it is education, and why we have a society that's billions in debt. A 5 year old is no more unreliable in many cases to a new one, and in some cases all the faults have all been repaired whilst under warranty so its more reliable,(seen this many times).



It's not all about looking good though, and I personally don't put much emphasis on the reliability aspect of leasing versus owning.

See my post above. I love my cars and leased that Golf R just for the pleasure of driving it for a couple of years. If I can afford the payments I don't see anything wrong with it, nor why anyone should pour scorn on my decision. At the end of the day it's my money to do with what I want.
Cost of lease v cost of older car and maintenance. Older car plus maintenance is probably going to be the cheapest option but it's an older car, more to go wrong, more uneconomical, not as safe, not as nice or refined etc..
deeky24 m ago

Yeah, I know You'd be surprised though. I've only leased once, this …Yeah, I know You'd be surprised though. I've only leased once, this one:https://www.hotukdeals.com/deals/volkswagen-golf-estate-20-tsi-r-dsg-300bhp-personal-lease-10k-miles-pa-2400-dep-17481pm-x-23-23999-admin-fee-666061-nationalvehiclesolutions-2427041List price about £34k, 300bhp = £520 fully comp insurance.Current car: lightly modified 2007 Skoda Fabia vRS, 165bhp and worth approx £3k = fully comp insurance - £600.Go figure.


I bet you only used about 50 of those horses ;), I think 165bhp is enough lol.
deeky1 h, 0 m ago

Simple.Because some people like to drive a nice new car and are prepared …Simple.Because some people like to drive a nice new car and are prepared to pay for it. They might want to change to another new one every 2 or 3 years and leasing costs less than the depreciation on a new car would.


Exactly why I do it, the Mrs has a VW Tiguan on lease at £530 down payment and £170 per month (10k miles pa over 2 years).

Cost New - £27300 at the time
Lease now coming to end and is valued Part-X price at £16,500
So total depreciation of £10,800
She has paid in total £4400 over the 2 years in lease payments which when you look at it is a saving of £6000

She changes her car every couple of year anyway so no brainer.

Totally get that leasing is a waste for people that want to keep a car over 3 years old.

I also lease a VW Golf GTD at £260 per month over 3 years and although the depreciation is less on this, over the 3 years I will have saved £4500 as I also change my car every 3 years.

Depends on what you want - I like new technology and cars are a hobby so I don't mind knowing that I will never own the car
Predikuesi34 m ago

True, but I'm wondering how much more I'd have to pay to insure a lease …True, but I'm wondering how much more I'd have to pay to insure a lease car compared with the £289 I recently paid to insure my car (fully comp).


I pay £243 for my 2016 VW Golf and I am 30 years old with a younger 2nd name driver on. Just for comparison purposes.
Baldy19721st Mar

All depends on situation, I know how much she was earning, and for me it …All depends on situation, I know how much she was earning, and for me it was barmy to spend £XXX a month on a car they she couldn't afford to actually use. But looked goodWhat the problem with it is education, and why we have a society that's billions in debt. A 5 year old is no more unreliable in many cases to a new one, and in some cases all the faults have all been repaired whilst under warranty so its more reliable,(seen this many times).


Not really, at 5 years old the suspension starts to wear and engine ancillaries start to choke up with crud.... change 2-3 years you never have to worry about a repair bill (unless you damage something) as the car is under its manufacturer warranty
.MUFC.10 m ago

I bet you only used about 50 of those horses ;), I think 165bhp is enough …I bet you only used about 50 of those horses ;), I think 165bhp is enough lol.


Believe me, those horses weren't made redundant
I would not like to lease, but I have a few people who do these lock in Payment type deals, where you pay £200a month and can either give the car back after 3 years, pay tonnes of money to keep it, or get locked into another plan. That deal is idiotic to me.
deeky9 m ago

Believe me, those horses weren't made redundant


Can you notice much difference?, I've never personally driven anything with more than about 150bhp, I mean like day to day driving etc.. Do you miss the extra bhp?.
.MUFC.5 m ago

Can you notice much difference?, I've never personally driven anything …Can you notice much difference?, I've never personally driven anything with more than about 150bhp, I mean like day to day driving etc.. Do you miss the extra bhp?.


I miss the sound more than the actual bhp. My Fabia is no slouch once you get away from the line but yes, you do notice the difference, not least when it comes to putting fuel in it
Predikuesi56 m ago

True, but I'm wondering how much more I'd have to pay to insure a lease …True, but I'm wondering how much more I'd have to pay to insure a lease car compared with the £289 I recently paid to insure my car (fully comp).


True there.

My Seat Leon Cupra on lease costs me £360 a year to insure for 20,000 miles a year and business use. So that is £71 a year more than yours. I am assuming that everything else is the same.
deeky3 m ago

I miss the sound more than the actual bhp. My Fabia is no slouch once you …I miss the sound more than the actual bhp. My Fabia is no slouch once you get away from the line but yes, you do notice the difference, not least when it comes to putting fuel in it


I've got the same engine in my Cupra, but wouldn't mind a bit more traction.
Original Poster
Interesting comments.
I suppose i look at it like this:

My bulletproof Volvo 850 cost £250 to buy, and £96 to insure comprehensive for the year because it's classed as a 'Classic' car.

I pay the £230 a year tax and including all repair bills & MOT etc i came out with £1350 (£450 a year!!!!)
And people who lease think that £4000 over 3 years is a good price?????

Let's face it, if the car breaks down tomorrow. i've saved over £2500 on lease costs and would have more than enough to buy and run another 2 Volvo's on that money hahahaha
Bobbajob1 m ago

I've got the same engine in my Cupra, but wouldn't mind a bit more …I've got the same engine in my Cupra, but wouldn't mind a bit more traction.


Yeah, it's rubbish away from the line but mid range it's awesome.
CaptainVolvo3 m ago

Interesting comments.I suppose i look at it like this:My bulletproof Volvo …Interesting comments.I suppose i look at it like this:My bulletproof Volvo 850 cost £250 to buy, and £96 to insure comprehensive for the year because it's classed as a 'Classic' car.I pay the £230 a year tax and including all repair bills & MOT etc i came out with £1350 (£450 a year!!!!)And people who lease think that £4000 over 3 years is a good price?????Let's face it, if the car breaks down tomorrow. i've saved over £2500 on lease costs and would have more than enough to buy and run another 2 Volvo's on that money hahahaha


That's great if it works for you. Horses for courses ain't it? I'd much rather drive a 2016 Golf R and pay £6k over 2 years for the pleasure.
Original Poster
deeky4 m ago

That's great if it works for you. Horses for courses ain't it? I'd much …That's great if it works for you. Horses for courses ain't it? I'd much rather drive a 2016 Golf R and pay £6k over 2 years for the pleasure.


Fair play, i agree with you on that one Deeky. It makes sense to get a car like yours or a Focus RS or an Audi RS4 on lease, i just don't get it when leasing a standard trim Vauxhall Astra or a Ford Mondeo...
Edited by: "CaptainVolvo" 1st Mar
CaptainVolvo10 m ago

Interesting comments.I suppose i look at it like this:My bulletproof Volvo …Interesting comments.I suppose i look at it like this:My bulletproof Volvo 850 cost £250 to buy, and £96 to insure comprehensive for the year because it's classed as a 'Classic' car.I pay the £230 a year tax and including all repair bills & MOT etc i came out with £1350 (£450 a year!!!!)And people who lease think that £4000 over 3 years is a good price?????Let's face it, if the car breaks down tomorrow. i've saved over £2500 on lease costs and would have more than enough to buy and run another 2 Volvo's on that money hahahaha


Thats the difference, I don't want to drive a 25 year old car, I need a car that can guarantee me to get from one side of the country to another without worrying about breaking down. I need a reliable car, you obviously don't and thats fine.
Edited by: "mds1256" 1st Mar
Original Poster
mds12563 m ago

Thats the difference, I don't want to drive a 25 year old car, I need a …Thats the difference, I don't want to drive a 25 year old car, I need a car that can guarantee me to get from one side of the country to another without worrying about breaking down. I need a reliable car, you obviously don't and thats fine.


Makes sense
Leasing cars vs PCP finance is a more interesting question. Initial deposit, 3 years of no-servicing costs and then at the end of it you either pay the balance or return it and get a brand new car.

Have to be locked into one manufacturer but there's often little reason to move away from the one you like.
SJHan2 h, 1 m ago

Because people don't want inefficient, outdated technology that's 25 and …Because people don't want inefficient, outdated technology that's 25 and 15 years old.



Speak for yourself I drive a 44 year old VW, wouldn't want anything else, its full of character and puts a smile on my face every single trip.
deeky1 h, 32 m ago

Yeah, it's rubbish away from the line but mid range it's awesome.



I looked at the first model of the Skoda Fabia vRS & the salesman showed me the acceleration curves of the Fabia versus a Porsche 911 in the 50-70mph range.

The Fabia's had faster acceleration (just in that range).

I eventually bought (not leased) a Subaru Impreza with a Prodrive Performance Pack; I'm fairly sure we've discussed this before.

The Fabia didn't beat that! :).
harlzter1 h, 11 m ago

Speak for yourself I drive a 44 year old VW, wouldn't want anything else, …Speak for yourself I drive a 44 year old VW, wouldn't want anything else, its full of character and puts a smile on my face every single trip.



In the last 20 years I owned (amongst many other vehicles) an early 1960s Morris Minor Traveller 1100.

That made me smile every trip too.

I had other (& more recently manufactured) vehicles at the same time, but I enjoyed driving the Minor more than those!
fanpages8 m ago

I looked at the first model of the Skoda Fabia vRS & the salesman showed …I looked at the first model of the Skoda Fabia vRS & the salesman showed me the acceleration curves of the Fabia versus a Porsche 911 in the 50-70mph range.The Fabia's had faster acceleration (just in that range).I eventually bought (not leased) a Subaru Impreza with a Prodrive Performance Pack; I'm fairly sure we've discussed this before.The Fabia didn't beat that! :).



Did it look like this?


33355186-wbrlr.jpg
fanpages25 m ago

I looked at the first model of the Skoda Fabia vRS & the salesman showed …I looked at the first model of the Skoda Fabia vRS & the salesman showed me the acceleration curves of the Fabia versus a Porsche 911 in the 50-70mph range.The Fabia's had faster acceleration (just in that range).I eventually bought (not leased) a Subaru Impreza with a Prodrive Performance Pack; I'm fairly sure we've discussed this before.The Fabia didn't beat that! :).


Yeah, I remember you saying that a few years ago It's a lovely looking car but the harsh ride is starting to get on my nerves a bit. I'm seriously thinking about putting the suspension back to standard but I like the way it looks so I'm a bit torn.
Edited by: "deeky" 1st Mar
HotEnglishAndWelshDeals9 m ago

Did it look like this?[Image]


33355242-XLAqZ.jpg
Nope. It was a four-door model, but not in blue & didn't have the 'spoiler'.

I wanted mine to "blend in" when in traffic (so I could slow down quickly & 'hide', or not draw attention with a blue/yellow livery, if I needed to).

I'd still have it now if it wasn't for it being in a multi-vehicle pile-up. The vehicle at the front stopped, I stopped, the third vehicle stopped, & the fourth didn't & shunted us all together.

I bought (again, not leased) a Chrysler 300c SRT-8 (6.1 V8 Hemi) after that
deeky10 m ago

Yeah, I remember you saying that a few years ago It's a lovely looking …Yeah, I remember you saying that a few years ago It's a lovely looking car but the harsh ride is starting to get on my nerves a bit. I'm seriously thinking about putting the suspension back to standard but I like the way it looks so I'm a bit torn.




Yes, I did like the look of it; quite roomy inside too... I doubt all my family would fit in it now without moaning though as the 'young'uns' have all grown a lot taller since then.

Well, saying that, my eldest has a car now, so the total needed to be accommodated at any one time is falling as the years pass.

Not long before I can go back to a two-seater "sports" car again
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