Skoda Octavia - Lease or Buy ?

[screenman]

It's whatever suits.
Mr M is happy and has worked out he will save money long term by leasing.

Maybe he has a different business model to mine, after talking it over often over the last 39 years with different accountants I was always advised not to lease or contract hire. Mind you I have never felt the need to buy a new car, being in the trade I would rather somebody else took the big knock.

I completely agree with you being able to do as you want, I just wanted to point out to others the risks involved.

 

[Levo-Lon]

Id always buy.Steve..if you can.
get gap insurance online NOT off the dealer..i just paid 62quid for 3 yrs gap return to invoice ..
personal loan or 0% if poss

 

[Mrs M]

The Skoda estate is a very nice car.
We had one on holiday as a hire car a couple of years ago and were impressed.

 

[Moodyman]

£6377 over two years to give the car back and have nothing to show for it?

I'm with Screenman on this. Buy 3 or 4 years old used car and rejoice.

 

[NorthernDave]

If you're only going to be doing 8000 miles a year, you'd be financially better off with a petrol engined car rather than a diesel particularly if you're buying it outright.
You need to be doing 14k+ miles a year to get the benefit from a diesel.
I'd also be very wary about sinking £25k into a new diesel now, given that its just been decried as the devils fuel and the powers that be look set to impose a load of extra charges on them...

 

[Andy_R]

£6377 over two years to give the car back and have nothing to show for it?

I'm with Screenman on this. Buy 3 or 4 years old used car and rejoice.

Yup.

We bought a 56plate Occy Estate4 years ago on 32,000miles for £9.5K. It's now on 112,000miles and so far (apart from consumables - tyres, brake pads etc) all we've had to do is get the washer pipe for the rear screen wash fixed - and it's sailed through each MOT. It owes me nowt. Probably the most reliable car I've ever owned, and one of the nicest handling (Golf running gear)

 

[biggs682]

personal rental is ok but as you say you will never own the car

watch the mileage limitations and extra charges

can be good idea if it suits you , i prefer buy 2nd hand and repalce every 5/6 years where poss or before if repairs get expensive

 

[Richard A Thackeray]

We bought a 56plate Occy Estate4 years ago on 32,000miles for £9.5K. It's now on 112,000miles and so far (apart from consumables - tyres, brake pads etc) all we've had to do is get the washer pipe for the rear screen wash fixed - and it's sailed through each MOT. It owes me nowt. Probably the most reliable car I've ever owned, and one of the nicest handling (Golf running gear)

Mine is on roughly 74,000 miles
Bought in March 2012, at 7 months old, with circa 6,000 miles showing


Shown on the day we bought it



How it usually looks
It's clean as it was in the above picture internally, though
I'm not fussed how dirty a car is, but I won't sit in a dumping ground

 

[Andy_R]

If you want a new car every 2 or 3 years with no hassle then it's the way to go.
Says Mr M!

You see, I don't get that. I've always bought a car I really like and hung on to it for as long as possible/feasible. A bit like underpants.

 

[subaqua]

Have her V40 on lease. Paid £1k deposit and pay out £240 a month for 3 yrs then have guaranteed future value of £10 k so we use that as deposit for next one .

No MOT , no worries for bills as warranty covers , includes servicing and tyres . Had we gone no servicing or tyres would have been £235 so doing the sums it works out .

We had a skoda octavia brand new , brill car , we chopped it in for the V40 at 13 . Based on what we spent in servicing tyres and post warranty work not forgetting the finance cost over 5 years it was about the same as the £240 a month.

Plus we get a new car every years

 

[Levo-Lon]

Have her V40 on lease. Paid £1k deposit and pay out £240 a month for 3 yrs then have guaranteed future value of £10 k so we use that as deposit for next one .

No MOT , no worries for bills as warranty covers , includes servicing and tyres . Had we gone no servicing or tyres would have been £235 so doing the sums it works out .

We had a skoda octavia brand new , brill car , we chopped it in for the V40 at 13 . Based on what we spent in servicing tyres and post warranty work not forgetting the finance cost over 5 years it was about the same as the £240 a month.

Plus we get a new car every years

think im either missing something here or you will find your in for a suprise.
1000 deposit and 240 a month for 3 yrs is around 9600 ish..on a 20k car.

so when you go to get the new car in 3 yrs you will just start again ..1000 deposit and 240 again..car is handed back. So if you want the car you pay the 10k and its yours

i used to do this buying method as Mrs M does.. not for me anymore

 

[SpokeyDokey]

think im either missing something here or you will find your in for a suprise.
1000 deposit and 240 a month for 3 yrs is around 9600 ish..on a 20k car.

so when you go to get the new car in 3 yrs you will just start again ..1000 deposit and 240 again..car is handed back. So if you want the car you pay the 10k and its yours

i used to do this buying method as Mrs M does.. not for me anymore

I've had this conversation with several people who think the guaranteed future value is theirs.

The value is simply what it is worth to the dealer to sell it to you at the end of the term. Especially on cars which are in high demand it is better for them not to sell it to the 'lessee'. They would rather sell them new PCP etc for a new car and put the used car into 'new to you' sales with a hefty mark up.

As the guaranteed value is what the car is worth at trade price the 'lessee' effectively funds the depreciation plus any interest charges incurred over the period of time that they have the car. And as for plans that include service costs - there's no such thing as a free lunch and car retailers give precisely zero away to their customers when you look at the totality of any deal.

Clever selling in my view.

 

[NorthernDave]

Leasing only really works if you want or need new car every 3 years.
I bought my previous car new outright for around £10k and ran it for 11 years and 160k+ miles. With the exception of routine maintenance and tyres, all it needed in that time was 1 exhaust, a couple of suspension components, a valve seat clean and an air con repair.
I got £1k when I part exchanged it, so over those 11 years I reckon I got my moneys worth and it work out a lot cheaper than leasing and I didn't have an ongoing monthly payment to make.
But, it's what works best for you.

 

[subaqua]

think im either missing something here or you will find your in for a suprise.
1000 deposit and 240 a month for 3 yrs is around 9600 ish..on a 20k car.

so when you go to get the new car in 3 yrs you will just start again ..1000 deposit and 240 again..car is handed back. So if you want the car you pay the 10k and its yours

i used to do this buying method as Mrs M does.. not for me anymore

The car is classed as the starting deposit again according to the blurb I am reading now because if the car is valued at 15 after 3 years. There is the difference . The finance company own the car so the dealer buys it from them . Whatever happens we are having a new one as it takes the hassle out of having a car when they breakdown. It's in warranty it's not my problem. Have had cars at 4 years old just out of warranty shoot emselves and deliver a £3k nasty while we still had the finance for another 2 years.

Should have been a bit clearer. Will teach me to post pissed

 

[SteCenturion]

Is it for private use or by you for business use Ste?

Sorry for the late reply @Archie_tect

It will be private & business use. I get a monthly payment as it is stipulated in my contract & pay business use insurance premiums but I don't have a business, local authority worker.