I never said you could agree a ten year lease, but to compare the two then it needs to be over a equal and fair period of time. I'd never buy a brand new car anyway but nor would I be keen on leasing. Most of the cars I've bought have been between four and eight years old.
You lot obviously live in a different world to me since I wouldn't pay over £6k on a car never mind the £20k+ that some have mentioned
Enlighten me, how does boredom of a car and having a short attention span tally together...? Plus, three or four months would be a pretty good time period of attention
I know you didn't say you could agree a 10 year lease I was saying that when you start out to calculate costs you can't presume you will still be leasing in 10 years time. If you haven't leased a car before, you need to work out costs at 3 years. I think we're on the same page on this
This is the wrong way to compute this. This expenditure has occurred over several years. 6-8 years? and not in one go. That is not a huge amount to spend over that period. You would spent the same if you had bought cars over the same period. Depreciation and maintenance costs would have accummulated.
Also, people talking about spending £300pcm on a car as if its nothing Albeit, on a much cheaper car but I'm only currently paying £64pcm and that including clearing a £1,500 debt off whilst buying the car Edit: to put that in perspective, my mortgage is only £360pcm
It was 4.5 years actually. The big difference is, at the end of those years I would still have a car! And it's something that happens with hindsight which is why I'm pointing it out to IBWT - should financial circumstances change, as they did in my case, I look back at a lot of money I spent and have literally nothing to show for it. It's worth bearing in mind at the outset. A similar discussion could be had with renting or buying a house [yes I know a house appreciates unlike a car] - at the end of the 6-8 years, you're homeless even though for those years you had a great house. If you were buying at least you have a home to sell.
I never rented mainly for that reason and instead brought my flat when I could... But as you say houses usually appreciate in value so slightly different.
Some jobs come with a car allowance and people use it to buy or lease a car. Sensible people like you would spend some, save some
Youre right. It is hugely different money wise when talking about houses, even accounting for the recession, houses will usually always appreciate [there are exceptions ,no doubt] but it was the feeling of having nothing at the end of the contract that is sort of similar.
24K over 4.5 years is a lot of money agreed. Must have been an expensive car to buy in the first place. But remember that if your car had deprecaited that much over that period then I would have thought the car you had must have been worth £35K+ at the outset.
It's actually very interesting how your car choice changes depending on what stage of life you're at. We had the small family car, followed by the 4x4 to take stuff up and down to uni, now looking at safe cars for baby seats for grandkids
Houses are different because, as Biscan rightly said, houses valuations will only ever increase over a sustained period of time. However, unless you can pay that mortgage off quickly, who benefits from owning your own house? In the short term, renting would see you get something that is probably a bit bigger for a bit less pcm but in the longer term you'll have to continue paying rent for your entire life whereas hopefully you can eventually pay off a mortgage and be free of payments. The main benefit really are your offspring.
