Car purchasing advice UK

[D_W]

Lease or buy depends on your circumstances and what's going on at the moment.

In the US, the lease market has private individuals in it,but is also popular for company cars (there are nontaxable limits for fringe benefits and buying and depreciating something as a business is a different prospect than an allowable monthly amount). Not that the average person gets a company car, but folks who are in sales generally do, as do some executives.

When the lease market is favorable, turning over cars often under a lease is far less expensive (unless you drive a ton). When it's not favorable, that's not the case.

If you can bear keeping a car for 12-15 years, the lease is never cheaper.

For folks who just really want to stretch out payments (or take a chance on it), lease plus loan sometimes works out (I've never leased a car). A work neighbor of mine leased an SUV when we got our first jobs, and then for one reason or another, the residual value of the lease wasn't that high when he went to turn the vehicle in and he bought it off of the lease and financed it (which, as i recall stretched the payment total to 7 years) .

We present valued the payments in total with all costs and it was less than buying would've been by a long shot, but I think that was luck on his part that he bought a vehicle that had terrible residual value. I'm sure it's also the case that some auto makers will offer lease deals on certain vehicles with subsequent residuals that are a bit of a loss because it's less of a loss to ditch the vehicle than it is to get stuck with it and continue to drop the sales price further.

i'm a car keeper, thus never having had a lease, but I did buy a car, get married and then find out it wouldn't be OK for spouse or kids and and was forced to sell at 3 years old with 30k miles for 55% of new price. ouch. A lease would've saved me on that. The car that replaced it is now over 13 years old, and with tires, brakes and all parts that have been put into it (not driven much now - just under 100k miles), the cost comes out to $1615 a year. The mrs would like something more stylish but having a car over the car's lifetime for $135 a month is stylish to me.

 

[stunshot]

Leasing, or PCP (personal contract plan) is indeed extremely popular, hence so many new cars on the roads in recent years. ok if you can stick to the mileage , usually circa 6-10k a year but you never own the vehicle. Be extremely wary of the condition the vehicle is returned in, many reports of charges for the most minor of defects, especially with alloys etc.
If i were you i would buy a nearly new outright and you will likely have some decent resale value when you want to change.

 

[fenhayman]

Now on my third CRV in 12 trouble free years.
Won't buy any electric or hybrid car. Metals in batteries sourced from African countries where child labour is used in mines. Major issues concerning recycling old batteries. Bit of green "whitewash" going on. Sticking to a modern petrol engine.

 

[Jameshow]

Also the brand and model of car has a great deal of bearing on the price paid, some cars loose 65% over 3years whilst others especially new models loose very little. Despite be very simalar in spec and function.

Cheers James

 

[alanpo68]

I work in the industry and the days of cheap leases, Personal Contact hire and Personal Contract Purchases have ended for now. The cheap deals are a result of how the industry works. Build slots are planned many months ahead. If it is a run out model or an unpopular vehicle then the manufacturer will sell those build slots to the lease companies at a large discount and offer incentives to dealers.

So when supply exceeds demand you can get some exceptional deals if you are not too fussy about which car you get. At the moment because of Brexit, COVID and semiconductor supply issues car deliveries are being pushed back, and the manufacturers quite simply cannot build cars quickly enough.

The result is that the residual value of used cars is extremely solid at the moment, so you are unlikely to get a decent deal there either. If your car is serviceable at the moment then I would sit tight for now.

 

[alanpo68]

Leasing, or PCP (personal contract plan) is indeed extremely popular, hence so many new cars on the roads in recent years. ok if you can stick to the mileage , usually circa 6-10k a year but you never own the vehicle. Be extremely wary of the condition the vehicle is returned in, many reports of charges for the most minor of defects, especially with alloys etc.
If i were you i would buy a nearly new outright and you will likely have some decent resale value when you want to change.

To be honest excessive charges for damage by lease companies is a bit of a myth. Sure there are a few cowboys out there but just make sure the lease company belongs to the BRVLA and you will be fine. You would be amazed at how much damage is deemed as normal wear and tear.

Here is a link to the BRVLA guide that member companies have to adhere to. Alphabet GB Ltd - Cars

The horror stories tend to come from people who treat the car like a hire car and abuse it. Those are the same people who buy a car abuse it and then think they are being ripped off when they are not offered near enough forecourt prices for their part ex.

The other thing is repair costs from finance companies (lease companies) are usually far less than the general public would normally pay. The biggest thing though is if you are not happy then appeal the charges.

 

[Flynnwood]

Old school here. I remember on a particular training course:
"The car has replaced the horse as an extension of the male ego"

I wouldn't touch a PCP or Lease, ever, unless I had money to burn.

Best to you on your decision.

 

[Phil Pascoe]

I have read that 70% of new cars now are leased.

 

[Keith 66]

Im curious, How many miles has the CRV done? My wife just sold her 23 year old one with 176,000 miles on it & it was still going strong. At 23 years old & that mileage it was starting to become an annual wonder what the mot would require next.
It was usually suspension joints that sort of thing but with a vehicle of that age you would expect it. Engine had its cam belt replaced at required intervals & it was regularly serviced by a trusted mechanic.
The interior still looked good at that age. One of the most reliable cars we have ever had. It was replaced by a nearly new CRV, just hope its as good!

 

[NikNak]

I can vouch for good quality low mileage well maintained car achieving good prices. Just sold my 5 1/2 yr old Sportage via Wizzle and got full asking price. And we've decided to try an ev on a 2yr lease, that way if we dont like it or the reported mileage is poop then we can just hand it back. LeaseLoco - The UK's Biggest Car Lease Comparison Site

 

[Bm101]

Forget everything written in this thread.
This car is what you want.
https://www.toyota.co.uk/world-of-toyota/toyota-gazoo-racing/gr-yaris/grades
Dooo de doooo!

 

[Bm101]

 

[Lonsdale73]

Hi good people
In the next year I will need to consider replacing my 10 yr old Honda CRV.
I hear these days about 'leasing' a vehicle and even such as 'rent to buy'.

I welcome anyone advice on the best purchase procedures at this time.

BTW
I am far from a car nut, I am happy as long as it stops when I want it to, steers where I direct it and starts when I want it to.
I want, safety, comfort and a bit of carrying capacity.
I have no need for the replacement to be new, used with service history is good for me.
I am not particularly interested in electric engine.

Even if I was to become a multimillionaire tomorrow I still wouldn't buy a new car again.

Not being much of a petrol head I used to buy new and replace every two or three years, thinking things like regular servicing and no MOT's would offset the high initial cost and offer some piece of mind. Complete nonsense and waste of money. Over a ten year period, I had two brand new Vauxhalls, a Rover and then a Mazda, only the last of those not having any constant niggly faults from the off. Instead, it seemed to have a target sign painted on it: I'd had it barely a week when someone didn't notice the lights had changed. No sooner got it back when someone tried to overtake me as I was turning right. Then it was side-swiped by a dustbin lorry, broken into (twice), vandalised and twice I came out of a supermarket to find someone had reversed into it. Eventually, it had an engine mamangemment light that kept coming on although none of the Mazda centres could identify why; one still charged me £60 for that (no) service. Eventually, one said it was a blown LED in the brake light, nothing worth worrying about until something went bang on a 1:8 gradient and I had to limp up it UP it at around 17 miles an hour. I did most of my 35 mile commute home from work on a dark December night at 17 mile per hour. That was fun.

Again Mazda couldn't identify the problem, said it might have been the turbo, estimated £2500 to repair OR it could have been something else costing an estimated £2500 with a possibility that it could be equally either, neither or both. Still, they offered me £5000 trade in against an ex-demo Mazda 6 which effectively cost me £2500 to buy with barely 3000 miles on the clock. That was a great car, around ten years of faultless serice from it right up until someone drove into it. Mentioned it on here at the time, damage looked minor but insurance company wrote it off.

I've had a Suzuki Grand Vitara for past ten years, picked up for £2000. That too has been great value although it is beginning to show its age now and I'm thinking it's time to replace it but prices for something remotely comparable are horrendous. I've seenone from 1994 with an asking price higher than I paid for mine ten years ago. Was seriously thinking of going for a horse and cart but then remembered vet fees are even higher than mechanics and horses far more temperamental and much higher maintenance than cars.

 

[Misterdog]

Used car prices have risen up to 20% since the end of lockdown, so unless you really need to, don't.

 

[Fergie 307]

Now on my third CRV in 12 trouble free years.
Won't buy any electric or hybrid car. Metals in batteries sourced from African countries where child labour is used in mines. Major issues concerning recycling old batteries. Bit of green "whitewash" going on. Sticking to a modern petrol engine.

Annoys me too. People talk as if these electric cars just appear ready made in the showroom, and completely ignore all the environmental damage done in making the thing. Can't personally see how battery power is a viable long term solution, certainly not for HGV, ships, aircraft and so on. It seems to me Hydrogen is the most sensible option, not that that will be easy either.

 

[Fergie 307]

Why has nobody mentioned auctions? You can buy fairly new vehicles still covered by the manufacturer's warranty, for a lot less than on the forecourt. Just stick to the reputable companies like BCA. There might be a shortage at the moment because of the current supply and demand situation, but once things calm down again well worth a look. You can also buy low mileage ex lease, with full service history very cheaply. If you want to buy outright this is a good option. A friend of mine had a real eye opener at the prices of Mercedes, Having just bought from the local dealer he realised that the half hour he had spent being pampered in the dealership, comfy sofa, coffee in a nice China cup and saucer with biccies, had cost him several grand!

 

[gog64]

I used to live near Blackbushe and bought a few cars at auction. It used to be a good wheeze IF you had a good basic understanding of where the market was (or a recent copy of Glasses guide) and basic mechanical competence. I thought I’d buy a car for the SiL a couple of years ago and was shocked at how much the fees has gone up. They are also tiered to sales volume, a clear way of monetising the private punters. Unless you were buying nearly new, the prices ended up close to retail and with effectively zero buyer protection. I still have one pal in the trade and he says that quality stock through the auctions is fetching sky high prices.

 

[Misterdog]

I still have one pal in the trade and he says that quality stock through the auctions is fetching sky high prices.

As I said 3 posts up used prices have risen 20% thats at dealers used car outlets and auctions.
Possibly going to remain so until 1st quater 2022.

 

[Alexam]

Take a look at the Mazda 3 Hatchback. I moved from Honda to Mazda 5 years ago and have just changed for another one. Good carrying capacity.