Buying or leasing

Honest John Back Room » Motoring discussion
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Fri 20 Feb 2004 20:45
Buying or leasing - jw edinburgh
I am likely to be changing my job in the near future which will require me to become self employed. I will need a car to cover about 40K miles per year for business purposes. I dont wish to buy new becuase of the first year depreciation. Would I be best to buy nearly new or use some form of leasing. Is there any independant source of information on leasing schemes. Any advice most welcome.
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Fri 20 Feb 2004 22:38
Buying or leasing - carayzee
So you need a car to do 120,000 in over 3 years, they all do that these days. What's your budget/criteria?
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Sun 22 Feb 2004 20:29
Buying or leasing - jw edinburgh
I have been running Mondeo estates for many years, and am more than happy to continue with Fords. As far as budgeting I am willing to go with whichever gives me the best deal.
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Sun 22 Feb 2004 20:47
Buying or leasing - Altea Ego
leasing is fine, but you have to tell them how many miles you are going to do, if you fail to do so, sending back a car with excess mileage on it will be £e£x£p£e£n£s£i£v£e£

plus you have to keep it pristine or they hit you with rectification fees too.
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Mon 23 Feb 2004 19:35
Buying or leasing - DavidHM
The other thing is that there can be tax advantages to leasing, so what I would do is find the best deal you possibly can - do you need any particular body shape or equipment specification? Surely you must need a diesel at 40k per year, too. Work out the cost to you to buy it outright, whether cash or on finance.

Normally I am very positive about Alliance and Leicester's Car Purchase Plan, although over three years and 120k you'd have to pay well under £9k for a Mondeo to get back the 40% balloon payment, so in this case it's probably not cashflow effective.

When you have that cost and you've looked at the tax and VAT consequences of buying and running your own car, work out how much the monthly payment would have to be on a lease to come out ahead. If you can't do that, speak to your accoutant, who should tell you soon enough.
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