Leasing vs Buying a 7 seater SUV (XC90 vs Q7)
Discussion
Thinking of switching from leasing to ownership after 8 years of running personal leases – mainly as the lease deals aren’t as attractive as they used to be anymore.
Requirements are a comfy 7 seater SUV – so looking at XC90 or Q7. As much as I’d like a Discovery or Defender, ruled out LR options as insurance quotes on them for my London postcode are upwards of £5k!
Leasing
XC90 Plus Diesel - 12 + 47 on roughly £600 per month = c£35.5k
Servicing over 4 years = £2k
MOT + Repair costs in Year 4 (out of warranty) = £500
Tyres = £2k
Total = £40k
Net outflow = £40k
Ownership
Q7 2020 (Facelift version) S Line/Black Edition = £40k (£15k down payment + £25k personal loan)
MOT and repair costs each year @ £2k = £8k
Tyres = £2k
Tax = £390x2 + £180 x 4 = £1.5k
Finance costs = £4k
Total down = £53.5k
Price of Q7 after 4 years = £15k (approx with 40k miles added)
Net outflow = £53.5k - £15k = £38.5k
Do these numbers look right? There’s not much in them to warrant running a 2nd hand vehicle outside of warranty for 4 years. Obv I understand that the longer I run the Q7 the cheaper the total cost of ownership becomes. Also, the car choice is deliberately different as I would really like the Q7 but the leasing costs are much higher and the closest match I could find was a deal on the XC90.
Are there any major costs I’ve not included here? Have not added insurance as that will be the same regardless of ownership option.
Requirements are a comfy 7 seater SUV – so looking at XC90 or Q7. As much as I’d like a Discovery or Defender, ruled out LR options as insurance quotes on them for my London postcode are upwards of £5k!
Leasing
XC90 Plus Diesel - 12 + 47 on roughly £600 per month = c£35.5k
Servicing over 4 years = £2k
MOT + Repair costs in Year 4 (out of warranty) = £500
Tyres = £2k
Total = £40k
Net outflow = £40k
Ownership
Q7 2020 (Facelift version) S Line/Black Edition = £40k (£15k down payment + £25k personal loan)
MOT and repair costs each year @ £2k = £8k
Tyres = £2k
Tax = £390x2 + £180 x 4 = £1.5k
Finance costs = £4k
Total down = £53.5k
Price of Q7 after 4 years = £15k (approx with 40k miles added)
Net outflow = £53.5k - £15k = £38.5k
Do these numbers look right? There’s not much in them to warrant running a 2nd hand vehicle outside of warranty for 4 years. Obv I understand that the longer I run the Q7 the cheaper the total cost of ownership becomes. Also, the car choice is deliberately different as I would really like the Q7 but the leasing costs are much higher and the closest match I could find was a deal on the XC90.
Are there any major costs I’ve not included here? Have not added insurance as that will be the same regardless of ownership option.
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