# New car - Lease or buy?



## StephandJohn (Sep 3, 2007)

*New car options; second hand with low mileage, lease new car*

What do you think.
We're looking at Hyundai i20s - a neighbour has one and thinks its great but wer're open to alternative ideas.
Shall we buy a new one at around £11,500 buy outright
A 2012 with 10,000 on the clock around £7500 buy outright. 5 years warranty
Lease a new one? about £150 a month. We won't own it but will get another new one in 3 years.

i've been googling but my brain hurts now with all the options!


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## StephandJohn (Sep 3, 2007)

I've googled this till my brains hurt!

We're looking at a Hyundai i20. although willing to consider other small cars

we could lease it for about £150 a month
buy a new one about £11500 or second hand 2012 for £7500 (both buy outright)

What do you think?


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## listerdiesel (Aug 3, 2012)

Low mileage used, let someone else pay the depreciation.

Peter


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## cabby (May 14, 2005)

First question, can you claim any tax relief on a Lease. Are you a business.How long will you keep the vehicle for, last comment, buy second hand and put the savings aside for running the vehicle.

cabby


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## Stanner (Aug 17, 2006)

Seconded!


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## Jmdarr (Oct 9, 2013)

Unless it's a company car lease is not an option I have leased three vans unless they go back under mileage and brand new it could cost you money at auction.


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## Camdoon (Sep 21, 2012)

If it just for the two of you then the smaller Kia Picanto is on a cheap finance deal at the moment.
http://www.kia.co.uk/new-cars/range/compact-cars/new-picanto/offers-5door/customer savings.aspx

7 year warranty.


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## Tezmcd (Aug 3, 2009)

There are many amazing lease deals to be had if you look around

I have recently leased my 21 year old son (at university) a brand new Fiesta 1.0 ecoboost Zetec S - quite frankly an amazing car with more power than the old 1.6 Zetec s

The monthly payment is £107 inc VAT for 3 years - that comes with 3 years warranty, 3 years breakdown, zero road tax and a million miles to the gallon - basically you put petrol in it and that's it

It all depends on your preferences and circumstances - if you like a new car every three years then its madness to buy one these days as the deals on offer (if you shop around are amazing) - if you like to buy a year old car then run it for the next 9 years then don't look at leasing


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## Stanner (Aug 17, 2006)

Tezmcd said:


> There are many amazing lease deals to be had if you look around
> 
> I have recently leased my 21 year old son (at university) a brand new Fiesta 1.0 ecoboost Zetec S - quite frankly an amazing car with more power than the old 1.6 Zetec s
> 
> ...


Surely there was an upfront payment or there will be a final payment?


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## Revise (May 13, 2012)

If you are buying through a company. Leasing is the best option for tax reasons. But read the T/C of the lease company regarding damages when you return the car. 
If you are buying for yourself. Buy used. 

We leased a van through my company. After 3 years I send it back and was given a bill bro £2800 for damages to the van over fair wear and tear. We had stone chips on the bonnet and they wanted to re-spray it. They agreed to take £600 after letters from my solicitor.


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## StAubyns (Jun 4, 2006)

Last year I bought a 3 year old Kia Soul 2 that was ex mobility. It had 4 years Kia warranty left and had only done 3,630 miles.

It cost me £7,500 and was like new.

The garage had a Volkswagen Polo that was also ex mobility with only 1,100 miles.

This was at a main dealer Ford garage. I know where I will be going for my next car!


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## greygit (Apr 15, 2007)

With a lease car ,who pays for servicing?


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## mike13 (Aug 15, 2010)

greygit said:


> With a lease car ,who pays for servicing?


Depends on your deal, some include most don't.


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## Mullsy (Aug 10, 2013)

The mileage limitations are also pretty meagre at about 5000 m per annum


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## StephandJohn (Sep 3, 2007)

Just to finish off this thread: we picked up our Skodia Fabia yesterday. An ex demo for £7990, 8 months old with 8000 on the clock. It included extras like floor mats, mudflaps, one years tax, 2.5 years full AA breakdown cover and they gave us £300 for our very old but faithful Citrone Xsara.
Its a great little car, good to drive and feels quite gutsy for a small car.
Thanks to everyone for their ideas and comments.


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## 747 (Oct 2, 2009)

It should be a good car. We are on our second Skoda Roomster (same drive train and floor pan) and are quite happy with them. I don't know if the Fabia is the same but we remove the rear seats and store them in the house. This makes acres of space in the back for the dogs.


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## GMLS (Dec 2, 2010)

Sounds like you got a good deal there. My father swears by Skodas and on his 3rd Fabia (he changes them regularly!)


I used to go out looking for a 1 or 2 year old car to avoid the depreciation hit but now I have a model approach which gets me a brand new car for less than a year old one but with all the benefits of a new one.


1) Use broker websites to get lowest price possible
2)Go to local dealer of choice and ask for their best price. Make it clear it is not an emotional purchase as you are prepared to by Ford, Peugeot, Vauxhall etc and just want the best deal.
3) When they give you their price, ask them to match your broker price. If factory ordered it's going to be exactly the same car, coming from the same factory with the only difference is it get's delivered to a different dealer which might involve a out of area trip (usually to the Midlands)
4) It might take a while but they usually will, other wise go to your next nearest dealer
5) They will then try and offer you finance. This usually comes with a deposit contribution. Borrow the minimum amount possible to get the discount.
6)Collect car and next day pay off load (if funds allow of course or borrow elsewhere at a lower rate and still pay off the loan). You have 14 days to cancel agreement with no penalty.


Using this approach has saved me £10,000's on my last 3 cars the most recent being a factory built £34,000 Merc for £28k. The dealer initially offered £1500 off list. The finance deal saved me £1500 after all the negotiations.Dealer loan was at 6.8%, replaced with a Tesco loan at about 4%


Also took our GAP insurance online for £140 instead of £400 from the dealer for exactly same policy.


I was happy to sign up to their service plan so still expect to maintain a relationship with them.


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