I normally buy used cars, run them for about 3-4 years and then sell and repeat. I always buy with cash at about £5000-10000. No loans, no contracts, no small print to read.
But I'm thinking of leasing a new EV to run for two years. This would replace my Lexus hybrid (15yo RX400h). I spend about £300/month with the Lexus including depreciation, fuel, car tax, allowance for servicing/MOT/etc. And for about that I can get a new Hyundai Ioniq on lease. Not directly equivalent (step down in materials) but acceptable.
But I've never leased a car before. 9+23 deals look OK, paying for maintenance myself is OK because EVs = super cheap servicing. However, what about repair bills at the end of the contract? Gap insurance needed?
Anything else to think of before taking the plunge?
Comments
Lease wise, repairs are only needed if the car is damaged outside of the acceptable guidelines, so things like scratches, badly curbed alloys etc.. there is some allowance for wear and tear. They generally outsource this to someone like the BVRLA - here's an example BMW guide: https://issuu.com/bfwsn67/docs/fwt_2013_issuu_bmw_group_financial_?mode=embed&viewMode=presentation&layout=http://skin.issuu.com/v/light/layout.xml&backgroundColor=FFFFFF&showFlipBtn=true
If you haven't tried OctopusEV already, I'd highly recommend at least getting a quote from them. I used Cyril for my lease, he couldn't have been more helpful to be honest - happy to ping you his details if you want them?
Also factor in your electricity provider, I've made an EV cost to charge calc for all EV's: https://www.witchalls.com/uk-ev-cost-to-charge-calculator/ having had a play with that with your new car, I think you're going to be hard pushed to beat Octopus Energy - If you decide to go with them, using a referral code get's you and the referrer £50 each (mine if you fancy it - https://share.octopus.energy/open-dodo-178)
Also don't forget you are entitled to the government grant towards getting a home charger fitted
Although they’re supposed to allow for FWAT, look out for damage charges which will be levied when you hand it back. Check what they consider acceptable, and what they don’t.
I wouldn’t bother with minor dings and stuff during the period of the lease, instead budget to have it all fixed just before you hand it back. Avoid kerbs, my mate got well stung by Mercedes Leasing for supposed damage to his wheels.
For info: 8000-10000 miles a year. Excess mileage seems to be about 9p/mile, so an extra 1000 miles/pa would be £180 over two years. GAP insurance about £50-80, I think.
Usage pattern and car parking issues will require me to charge at work or at a charge station during the day, so no cheap off-peak electricity There are, at least, workplace charger subsidies available.
Got an online quote from Octopus for the Ioniq and it's about 25% more expensive than via Leaseloco. Will dig deeper on the actual deal...
@crunchman - I had heard of some end-of-lease inspections involving paint-depth gauges for spotting bad 3rd party repairs.
There is a market in putting Tesla engines in classic cars. I watched a YouTube video of someone doing this with a bashed up old Beetle. In reality not that much of the original car remains but with a Tesla engine in it such a small car goes like shit off a shovel. Probably not practical as a family car but it looked fun. Not cheap and not on a lease, obvs.
We all know that Apple will have an EV before long, and that will develop the market. (Although I suspect Apple, being Apple, will announce that their car does not have a steering wheel.)
last couple of years, it’s through a group bargaining scheme. They’ve lost out this year to Shell, same promise on renewable electricity. Two emails and I save £50 or whatever so I’m going to do it. Anyway, Shell Energy obviously trying to be competitive so maybe one for the list.
6,500 up front on a crappy honda e seems a piss take tho?
The assessment of lease vehicles is subject to fair wear and tear and very prescriptive in terms of what is considered acceptable. The company should advise the cost as well. As an example VWs ‘penalty’ for a scuffed alloy is cheaper than getting it refurbished.
The condition report is typically carried out by the auction house (BCA in my experience of two different brands of vehicle) they are quite strict. So...if you think you have been unfairly assessed, you can make representations and I’ve negotiated on areas highlighted as falling below standard, and had the lease co. agree they were actually within acceptable tolerance.
If you look after the car properly, get any repairs outside the FW&T properly sorted I don’t think the potential costs on returning the vehicle are anything to get too concerned about.
I hope I ever have to own a car again. To quote someone else...
If it drives, flies, floats or fucks - lease it.
With a brand-new car under lease, I'm in a different situation, so that's why I've got to think it through. The above experiences are useful to get a feel for the 'gotchas'.
> If it drives, flies, floats or fucks - lease it.
Well, not really! Leasing a new car, and never owning it simply means that I'll just be voluntarily taking on the worst of the depreciation myself, just to have the latest thing. That's not sensible (nor sustainable, etc). The last few cars I have owned:
- Car 1 bought for £1000 ran for 4 years, sold for £1000
- Car 2 £22000 five years ago and now worth £45000
- Car 3 £23000 five years ago and now worth £35000
- Car 4 £6400 two years ago and still worth £6000
YMMV.(I'd still rather buy a 4yo car outright, but I think EV tech is moving too quickly.)
Put on your sunglasses, get the Paracetomol ready and prepare for the trip that is Lings: https://www.lingscars.com/
That included:
Cost of loan per year.
Annual insurance.
Annual breakdown cover.
Annual warranty cover.
1 major service at a main dealers.
+ I guess cars are included in my hobbies so, generally if I can afford it I’ll spend what has to be spent to keep things well oiled.