Lease new Vs finance/bank loan purchase?
Discussion
The Mrs currently has a 13 year old Audi A1 1.6 TDI and the MOT is due. It's a bit tatty so currently considering MOT'ing it and selling it on cheaply. Bit sick of running bangernomics cars for her to be honest, so fancying something either nearly new or brand new. Never had a brand new car so.
Naturally, she likes the newer Nissan Juke. Some pretty good deals available (£1100 up front, £199 a month for 2 years, 8k miles which is plenty enough) I was tempted by this as it saves the hassle of selling at the end of the term and you aren't tied in for 3+ years if she got bored of the car.
In my head I'd set a budget of £200 per month for a car for her, because she only does a small amount of miles (generally 5-6k) and she doesn't need anything all singing all dancing - comparative cars in this price point are Suzuki swifts, corsas etc. so a juke seems a bit nicer to live with than those.
My way of thinking is if I sold the Audi, it would cover the up front fee plus a couple of months payments towards the new car, it wouldn't feel like it's cost anything, the ongoing cost is also likely to be less than financing it as a purchase, rather than a lease.
Am I missing anything and based on those circumstances, do you PHers think a lease deal would be good for the wife here?
Naturally, she likes the newer Nissan Juke. Some pretty good deals available (£1100 up front, £199 a month for 2 years, 8k miles which is plenty enough) I was tempted by this as it saves the hassle of selling at the end of the term and you aren't tied in for 3+ years if she got bored of the car.
In my head I'd set a budget of £200 per month for a car for her, because she only does a small amount of miles (generally 5-6k) and she doesn't need anything all singing all dancing - comparative cars in this price point are Suzuki swifts, corsas etc. so a juke seems a bit nicer to live with than those.
My way of thinking is if I sold the Audi, it would cover the up front fee plus a couple of months payments towards the new car, it wouldn't feel like it's cost anything, the ongoing cost is also likely to be less than financing it as a purchase, rather than a lease.
Am I missing anything and based on those circumstances, do you PHers think a lease deal would be good for the wife here?
Work out what the cost is over the lease period vs. cost of loan/finance and depreciation. You won't know the latter for sure but checking the price of a 3 year old model with similar milage is a good indicator. Work out which is cheaper and go from there.
Unless it's included you'll still need to pay maintenance and resolve any damage so your £200 won't be all in.
Unless it's included you'll still need to pay maintenance and resolve any damage so your £200 won't be all in.
So same spec @ 3 years old is 12.5k. new price (with dealer discount) is 21.5k. so that's a 9k depreciation.
Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
squarehead94 said:
So same spec @ 3 years old is 12.5k. new price (with dealer discount) is 21.5k. so that's a 9k depreciation.
Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
The lease cost already has the interest built in. The loan will also not be 21.5k. it would be total cost of borrowing + interest.Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
Check what the lease includes for servicing. I paid about £40 a month on my last lease to include all maintenance. No brainer when a service was about £300 annually and a set of tires was £1200.
Though I much prefer to own my cars in this situation I'd definitely go with the lease. I wouldn't bother agonising over likely depreciation or anything like that, if it's the car your Mrs wants at a good price with you carrying effectively zero risk in the arrangement then what's not to like? Bit of an odd comment above re the possibility that your Mrs might not like the Juke because it's a 'lesser marque' - my mate's got an A3 1.6 of the same vintage and a Bentley it most definitely is not.
Seeing as your wife doesn't do many miles, I'd say an approved used will make the most sense.:
https://www.autotrader.co.uk/car-details/202409144...
https://www.autotrader.co.uk/car-details/202409304...
Something like the above would be the smart option as you'll get two years warranty too.
With your wife doing such low miles by the time you come to sell, it'll be classed as a low mileage car.
https://www.autotrader.co.uk/car-details/202409144...
https://www.autotrader.co.uk/car-details/202409304...
Something like the above would be the smart option as you'll get two years warranty too.
With your wife doing such low miles by the time you come to sell, it'll be classed as a low mileage car.
I thought that was 2023 onwards:
https://www.autotrader.co.uk/car-details/202408032...
https://www.autotrader.co.uk/car-details/202409043...
https://www.autotrader.co.uk/car-details/202408032...
https://www.autotrader.co.uk/car-details/202409043...
The 2024 models seem to have a wider screen with no dials, as per this one:
https://www.autotrader.co.uk/car-details/202410024...
https://www.autotrader.co.uk/car-details/202410024...
squarehead94 said:
So same spec @ 3 years old is 12.5k. new price (with dealer discount) is 21.5k. so that's a 9k depreciation.
Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
I thought you were looking to lease one for 2 years... The price for depreciation, for a comparison, should be calculated based on a 2 year old car rather than a 3 year one.Total cost of the lease is £5700 and change. So I guess the lease would win here on those figures?
I assumed servicing etc wouldn't really come into play at 16,000 miles? Other than possibly an oil change, which I thought with leases service was included?
I've never leased a car before or got one on PCP, as I like to change the car when I want rather than when I'm told / have to... often changing after 6 months just for something different. Saying that I've just got a Honda e:Ny1 on a 2 year PCP on one of the deals where Honda and the dealer were throwing big money at them... it was a cheap way of trying an electric car.
My Mother-in-Law had a couple of Nissan Jukes and then a Toyota C-HR, all on Motability, she much preferred the C-HR, although the Jukes were both the original shape. She's now got an electric Mini2....
squarehead94 said:
The 2024 models seem to have a wider screen with no dials, as per this one:
https://www.autotrader.co.uk/car-details/202410024...
Everyday is a school day I didn't realise they'd had an interior update.https://www.autotrader.co.uk/car-details/202410024...
Rob 131 Sport said:
You need to consider that if she changes from an Audi to a lesser marque, she probably isn’t going to like it.
I would get a bank loan and buy the best Audi A1 or Mini you can afford.
Read the OP, his wife likes the Juke!I would get a bank loan and buy the best Audi A1 or Mini you can afford.
Lease in this case seems the best option.
Cheap
Known costs for 2 years
Warranty
Limited cost on servicing
New car
Happy wife
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