To lease or To buy?
Discussion
As in the title really.
Currently have just 1 car that the wife and I share (golf plus), but need to sort a 2nd car again soon. We also have a 10 week old baby, so the golf just ain't going to cut it any more so need to change.
At work, I have the option of leasing a car through Lease Plan or Budget but to be honest the cars you get for the money aren't very appealing.
For example, this is just some random quotes I have received based on a 3 year lease.
Ford Taurus 3.5 SE - 3052pm
Audi A4 1.8 - 4350pm
Toyota Prado 4.0 - 3972pm
Ford Explorer 3.5 XLT - 3940pm
Ford Fusion 2.5 - 2594pm
Money aside, none of the above excite me really but that's just an idea of cost per month. I know a lot of hassle is taken away from it when leasing (maintenance, down payment, etc etc) but for this sort of outlay I could buy some pretty nice cars.
For example I could buy the below for a similar outlay per month, some with 10% down payment and some with 20%. Mercedes do a 2 year star programme with option of balloon payment at the end, handing the car back or replacing for a newer model (i'm sure other manufactures will offer something similar.
Mercedes C200
Mercedes E300
BMW 328i M sport
BMW 335i Sport Line
Audi A4 3.0 Quattro S-Line
Audi A5 3.0 Quattro Sport back
I need to do further research but looking for experience of people having the same dilemma. I am not sure how tied into the lease you are, if you lost your job decided to move on. So that's something I'll also need to look into.
Cheers
Currently have just 1 car that the wife and I share (golf plus), but need to sort a 2nd car again soon. We also have a 10 week old baby, so the golf just ain't going to cut it any more so need to change.
At work, I have the option of leasing a car through Lease Plan or Budget but to be honest the cars you get for the money aren't very appealing.
For example, this is just some random quotes I have received based on a 3 year lease.
Ford Taurus 3.5 SE - 3052pm
Audi A4 1.8 - 4350pm
Toyota Prado 4.0 - 3972pm
Ford Explorer 3.5 XLT - 3940pm
Ford Fusion 2.5 - 2594pm
Money aside, none of the above excite me really but that's just an idea of cost per month. I know a lot of hassle is taken away from it when leasing (maintenance, down payment, etc etc) but for this sort of outlay I could buy some pretty nice cars.
For example I could buy the below for a similar outlay per month, some with 10% down payment and some with 20%. Mercedes do a 2 year star programme with option of balloon payment at the end, handing the car back or replacing for a newer model (i'm sure other manufactures will offer something similar.
Mercedes C200
Mercedes E300
BMW 328i M sport
BMW 335i Sport Line
Audi A4 3.0 Quattro S-Line
Audi A5 3.0 Quattro Sport back
I need to do further research but looking for experience of people having the same dilemma. I am not sure how tied into the lease you are, if you lost your job decided to move on. So that's something I'll also need to look into.
Cheers
I've always thought (and previously stated) that renting cars here is very expensive...luckily I was able to pay cash for the McLaren, The Enzo, and the Aventador, before finally settling down and Securing a good finance deal on a Ford Expedition.
As I have 1 child and a 2nd on the way, I would spend, say, 40-50 on an Explorer, and run it into the ground...the nipper will, eventually!
As I have 1 child and a 2nd on the way, I would spend, say, 40-50 on an Explorer, and run it into the ground...the nipper will, eventually!
Been here a long time, 23 years, have leased and owned all sorts of cars, and would advise that you buy, but that you avoid European and american cars, the depreciation is crippling, which is probably why the leasing rates are so high.
Last time I was looking to lease a car I talked to the leasing company I used at that time for company vehicles. I looked at a big variety of SUV's and the prices varied enormously car by car, for instance a 3 year lease for a Lincoln mountaineer (upmarket ford explorer) came in 5,300 per month, but a Honda pilot was 3,300, puzzled, I went and talked to them their office was next door, and asked why prices varied so much. Note that at that time, both cars were exactly the same purchase price.
They said, American and European cars depreciate quickly, and are unpredictable/expensive in terms of expected repair costs and since they make their profit based on selling the car after the end of the lease, they charged high lease rates to compensate. On the other hand Honda is not going to require any repairs apart from the standard brakes etc, and they know pretty accurately how much it will cost over the lease period. In addition, resell value is high, so much lower rates could be safely offered. I took the Honda, and have had two more since.
As a further example, my wife had a Toyota Fortuner until a couple of months ago, when we decided to sell it. Not wanting to faff about with adverts etc just out of curiosity we took it back to the dealer, and they offered to buy it. Note we were not trading in, this was a straight cash purchase deal.
we paid 79,000 for it 7 years ago in July, so it was 7 years and two months old, and it had 227,000 KMS on it! I was gobsmacked when they offered us 32,000 for it! We snatched their hand off and took the loot. Unbelievably low ownership cost.
You won't get that with Merc/Audi/BMW!
Last time I was looking to lease a car I talked to the leasing company I used at that time for company vehicles. I looked at a big variety of SUV's and the prices varied enormously car by car, for instance a 3 year lease for a Lincoln mountaineer (upmarket ford explorer) came in 5,300 per month, but a Honda pilot was 3,300, puzzled, I went and talked to them their office was next door, and asked why prices varied so much. Note that at that time, both cars were exactly the same purchase price.
They said, American and European cars depreciate quickly, and are unpredictable/expensive in terms of expected repair costs and since they make their profit based on selling the car after the end of the lease, they charged high lease rates to compensate. On the other hand Honda is not going to require any repairs apart from the standard brakes etc, and they know pretty accurately how much it will cost over the lease period. In addition, resell value is high, so much lower rates could be safely offered. I took the Honda, and have had two more since.
As a further example, my wife had a Toyota Fortuner until a couple of months ago, when we decided to sell it. Not wanting to faff about with adverts etc just out of curiosity we took it back to the dealer, and they offered to buy it. Note we were not trading in, this was a straight cash purchase deal.
we paid 79,000 for it 7 years ago in July, so it was 7 years and two months old, and it had 227,000 KMS on it! I was gobsmacked when they offered us 32,000 for it! We snatched their hand off and took the loot. Unbelievably low ownership cost.
You won't get that with Merc/Audi/BMW!
Cheers for the advice, but still unsure of the best route at the moment.
I know what you mean about the european/us cars. The lease company did say something similar when providing quotes (especially the A4).
Initially I thought a budget of 2000 a month would be ok, but it seems I am some way short with that.
I know what you mean about the european/us cars. The lease company did say something similar when providing quotes (especially the A4).
Initially I thought a budget of 2000 a month would be ok, but it seems I am some way short with that.
Friend of mine was renting a dull saloon for 2500 per month (Hyundai or something). He went into Toyota and asked about the FJ Cruiser. Think he had to put down a deposit of 20k and then signed up to some monthly HP payment plan for 2 or 3 years (can't remember). Even when you factored in the deposit divided by the 2 or 3 years it still worked out way less than the 2500 he was paying for the dull saloon. The HP plan required him to return the car at the end but included servicing so was similar to leasing. I think the FJ is being phased out soon so there are some good deals about. Could be an option.
Onetrackmind said:
Friend of mine was renting a dull saloon for 2500 per month (Hyundai or something). He went into Toyota and asked about the FJ Cruiser. Think he had to put down a deposit of 20k and then signed up to some monthly HP payment plan for 2 or 3 years (can't remember). Even when you factored in the deposit divided by the 2 or 3 years it still worked out way less than the 2500 he was paying for the dull saloon. The HP plan required him to return the car at the end but included servicing so was similar to leasing. I think the FJ is being phased out soon so there are some good deals about. Could be an option.
Cheers, will check it out.Just to bump this topic.
Is anyone else aware of good leasing deals here in the UAE. It seems in the UK there are a number of good deals that seem to pop up (Golf R an M135i spring to mind)
Is there anything similar over here? I am still in two minds to buy or lease. Leasing is probably the more sensible option, doesn't necessarily require a down payment and everything is packaged in (servicing etc). Buying however allows you to get something better for your monthly $$$ and you have something to show for it at the end.
Any more suggestions?
Is anyone else aware of good leasing deals here in the UAE. It seems in the UK there are a number of good deals that seem to pop up (Golf R an M135i spring to mind)
Is there anything similar over here? I am still in two minds to buy or lease. Leasing is probably the more sensible option, doesn't necessarily require a down payment and everything is packaged in (servicing etc). Buying however allows you to get something better for your monthly $$$ and you have something to show for it at the end.
Any more suggestions?
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