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Lease a car or finance? Watch

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    Hello which is a better option and why? Lease a car or finance a car?
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    (Original post by stack__)
    Hello which is a better option and why? Lease a car or finance a car?
    Moved to Cars and Motoring

    I am going to tag our Car expert IWMTom
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    (Original post by stack__)
    Hello which is a better option and why? Lease a car or finance a car?
    It depends on the offer .. do the arithmetic for both options on cars you are interested in.
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    (Original post by Muttley79)
    It depends on the offer .. do the arithmetic for both options on cars you are interested in.
    Ok let's say you earn about 25k a year and u pay £1000 mortgage do you think it's a smart idea to lease or finance ?
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    (Original post by stack__)
    Ok let's say you earn about 25k a year and u pay £1000 mortgage do you think it's a smart idea to lease or finance ?
    It depends - a colleague has a 0% finance deal on her Citigo car. She worked out that was cheaper than a lease.

    You need to look at the car you want and go and get quotes - it depends on the car and the deals out there.
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    It's too simplistic a question. They are both forms of finance. You get a car and they get payments from you over time. Which is better depends on the terms of the respective agreements.
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    (Original post by Sternumator)
    It's too simplistic a question. They are both forms of finance. You get a car and they get payments from you over time. Which is better depends on the terms of the respective agreements.
    But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing
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    (Original post by stack__)
    But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing
    What is better, renting a house or buying one with a mortgage? It depends.
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    (Original post by Sternumator)
    What is better, renting a house or buying one with a mortgage? It depends.
    House is a whole differing thing lol keep houses out of this
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    As I'm sure WoodyMKC will tell you, leasing is generally much more cost effective as the maintenance is all thrown in, unlike generic financing.
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    (Original post by stack__)
    But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing
    PCP finance means you pay off a final sum or trade in for another car.
    It's a third option -

    http://www.moneysavingexpert.com/car...tract-purchase
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    (Original post by IWMTom)
    As I'm sure WoodyMKC will tell you, leasing is generally much more cost effective as the maintenance is all thrown in, unlike generic financing.
    Well said, as usual!
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    (Original post by stack__)
    Hello which is a better option and why? Lease a car or finance a car?
    Save up and buy a car you can afford. Get one at least 3 to 4 years old because the largest chunk of devaluation has already happened otherwise with finance you will be in negative equity until the very end of the term and you''ll be better off not having those monthly payments hanging over you.
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    (Original post by Steljoy)
    Well said, as usual!
    Love you :love:
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    (Original post by Aidan.reed)
    Save up and buy a car you can afford. Get one at least 3/4 years old because the largest chunk of devaluation has already happened otherwise with finance you will be in negative equity until the very end of the term and you''ll be better off not having those monthly payments hanging over you.
    A car that's 3/4 years old will be so expensive
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    (Original post by cherryred90s)
    A car that's 3/4 years old will be so expensive
    Hence 'That you can afford' that was the minimum age. The monthly payments are what are expensive and when it comes to the end of your term or you trade up half way through they take the negative equity across to a new loan at that point you're in the cycle. What can you afford to buy out right and what cars are you looking at on finance?
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    (Original post by cherryred90s)
    A car that's 3/4 years old will be so expensive
    I'm going to hazard a guess the poster meant 3 to 4 years, not three quarters of a year.
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    (Original post by IWMTom)
    I'm going to hazard a guess the poster meant 3 to 4 years, not three quarters of a year.
    Yeah I know, but wouldn't that still be expensive? Like a 2013 car ?
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    (Original post by cherryred90s)
    Yeah I know, but wouldn't that still be expensive? Like a 2013 car ?
    In comparison to a brand new car, no, definitely not. Mileage dependant, it'd be affordable for the vast majority of people - expense is subjective towards your financial situation, though.
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    (Original post by IWMTom)
    I'm going to hazard a guess the poster meant 3 to 4 years, not three quarters of a year.
    Yes I apologise for the confusion I will edit it now
 
 
 
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