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- DieselRanger
- Member Since: 12 Oct 2017
- Location: God's Country, Colorado
- Posts: 766
The lease vs buy argument is right up there with truth vs beauty, liberty vs security, blonde vs brunette, whiskey vs beer, and red vs green (that last one might be in New Mexico only). Financing a depreciating asset in any manner is generally a bad idea but who these days can afford to pay cash for a car they really want to drive?
Keep in mind that depreciation is not constant - it's usually steeper in the first year or two and then starts to level off somewhat. In a lease you're only paying for the depreciation of the vehicle for the period you use it, but the majority of the vehicle's lifetime depreciation occurs during the lease term. So the deal should be considered in that light.
If your D4 is free and clear and in good shape and you can scrape a little more cash together, why not finance a purchase instead of a lease? The problem with trading a vehicle you own in on a lease is that the residual value of the car you're trading disappears into the lease. Leases may be different in the UK, but in the US the residual value of the vehicle is set before you sign the paperwork, so if at the end of the lease the vehicle happens to be worth more than the residual, your only option to recover any value is to buy it at the contracted residual price and then either keep it until depreciation catches up, or immediately sell it and pocket the difference.
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- simonej
- Member Since: 01 May 2017
- Location: Wakefield
- Posts: 39
I’d actually be happy with a 6-12 month old car but unfortunately the petrols are few and far between and the used car APR is bordering on ridiculous. I own the D4 outright and did consider a loan to buy the D5 outright but to be honest was going to withdraw some of my equity to put towards a Lotus Evora (currently a TVR owner but could do with four seats!).
On another note I’ve just realised my last five cars have been British and the only cars I seem to look at are British, maybe I should try Italian or something!
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- DieselRanger
- Member Since: 12 Oct 2017
- Location: God's Country, Colorado
- Posts: 766
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You must be a masochist....
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