Brand new or Leased

[2007GTI]

So I missed the quick delivery and cheaper lease deals on GTIs, but I could get one in late Sept / Oct.

Because of the wait, it got me thinking of buying outright again instead, which I am fortune to be in a position to do at the moment.

The lease would be £7950 total cost over two years (only option met paint), and obviously give the car back.  Or buy new outright via Drivethedeal for £25,661.

My question is, is a new one likely to loose more than £7950 over two years?  I do 6-7k a year and I keep my cars in good condition, no pets or kids etc.

Thoughts?

[Watts]

A very rough guide, mine's a 15 plate car which I could've got for about £25k new from dtd. Now, looking at Autotrader, low mileage cars are about £18-20k retail so you'd probably get about 80% of that as a trade in so roughly £15k, meaning a drop of about £10k.

So if it is purely money then it looks like a lease would be the best option. Personally I like the feeling that I'm driving MY car so owning is important to me.

[2007GTI]

Thanks Watts and I totally know what you mean. I've never leased a car, and I just have this feeling that they will try and sting me at the end.

I have been studying Autotrader and HPI valuation tool, which is by no means comprehensive, but it has some handy features and shows private sale, trade in and retail. As you say there is a difference between trade and retail. If only I had a crystal ball...

[Guzzle]

Depends how long you intend to keep the vehicle. If you would only keep it 2 years anyway then the lease will almost certainly work out cheaper. The longer you keep it then the lease will lose value appeal. If 3 years or less i'd go for the lease. Any more than 3 years i'd be tempted to buy.

If buying outright costs you £25k, and leasing costs £8k over 2 years, then you also have the chance to do something else with £17k of your money for 2 years instead of having it 'invested' in a depreciating driveway ornament.

[I wanted a GTi]

Just a thought but would you consider a clubsport, with the right options not only will it not depreciate less but you may want to keep it long term.

Better looking in my view over any other Mk7 Golf, especially in red with 3 doors.

[Gaz W]

If your lease deal is costing you near enough £8k over 2 years, my PCP purchase is costing me not a lot more than that over the same period for the exact model/spec I want including servicing.

The cheap lease deals are great if you aren't fussy but I specifically wanted to add certain options, colour etc and I got a great deal in the end so I think you are in a better position to 'buy' the car, e.g. PCP than lease as you have more flexibility than just pay the rentals and hadn't the car back.

Worth bearing in mind a 2 year lease you're likely to incur any additional maintenance costs e.g. tyres, brakes etc whereas keeping the car longer 3/4 years on PCP you may begin to incur routine maintenance costs.

I think it pays to PCP, but change as often as you can and providing you get a good deal you should have no issues regularly changing the car approx 50% the way through the term.

[2007GTI]

Thanks All.

Gaz, firstly I'm not fussy, I don't need any options and I can live with Black Rubin the only solid colour available.  I'm going to have to disagree with with you regarding maintenance costs.  Doing only 6-7k a year, I won't need to put tyres on it, I'm pretty sensible. Re: brakes, on my Mk5 GTI, I kept it for 8 years, 38,000 miles, never put discs or pads on it, always serviced by VW.

[Gaz W]

Thanks All.

Gaz, firstly I'm not fussy, I don't need any options and I can live with Black Rubin the only solid colour available.  I'm going to have to disagree with with you regarding maintenance costs.  Doing only 6-7k a year, I won't need to put tyres on it, I'm pretty sensible. Re: brakes, on my Mk5 GTI, I kept it for 8 years, 38,000 miles, never put discs or pads on it, always serviced by VW.

If you aren't fussy then a cheap PCH deal will be cheaper for sure, just less flexibility over what you buy and what you do with it once you have it.

There are so many variables when it comes to routine maintenance, as you say if you are sensible low mileage driver then no costs incurred to worry about but day in day out I see tyres and brakes worn out in no time at all, all comes down to driving style and mileage! Also depends on the tyre lottery that Volkswagen now offer with every new car!

[Guzzle]

If you take out PCP bear in mind you will also incur about £1k interest charges in the first year alone, slowly reducing throughout the term.

Your £25k car would therefore need to be worth £19k after 2 years to beat the lease in terms of overall cost. If you settle the PCP early to avoid interest charges you will no longer have the option to hand the car back. PCP's work best when there is equity in the car and you are brand loyal.

[faisal_uk]

If you haven't already gone for the lease - do it quick!
Think there may be a few cars left at the reduced prices.

Way better than the PCP option and yes there are uncertainties over buying new and then trade in values after 2-3 years.
My thinking is that this may be the last chance to get a decent brand new car for under £300 per month before all this Brexit crap happens!
There could be major changes for the car industry in a couple of years - so waiting to see how it plays out.

Will probably go with the 2 year lease and then save up to buy something decent on the 2nd hand market.

No point buying new at the moment - you will get a much better deal on a used MK7 PP or Clubsport (and lose less in depreciation).