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Maybe in 20 years we will just be hailing driverless cars but it does seem like leasing an EV is going to be the standard way to have your own vehicle for the interim period. Charging points at the front of houses seem to be popping up all over our estate at the moment.
It's nice to own a car but some lease deals are too good to pass up. Don't fixate on a particular model and start looking as early as possible. Outgoing models particularly are discounted to lease companies in ways personal buyers could only dream of.
But I have read the same point about leasing in general - the best deal may be a different car.
Now, I lack the imagination to predict what sorts of tax/etc may be levied on them and reduce their profit. But they obviously have more imagination than me, and see it as a risk, and they want me to bear it. With HMG likely to be trying to recover CV19 spending in the next couple of years, who knows what might happen.
Or do I have the wrong end of the stick, and this is some standard risk-free clause?
Plus, as you have pointed out, if you pick the right car you can essentially have cost free motoring.
You now get £2500 off an EV under £35,000. Last week this was £3000 off an EV under £50,000.
@chrisj1602 On the subsidy change, the clause as-written doesn't allow for the lease company to claw back that £500.
Which is of course why the car industry want us all to switch to leasing.
I’ve typically paid about £5K for a car and got at least 5 years out of it, sometimes close to twice that, with maintenance costs of up to about £1K a year, but often less than half that. Probably about £1K a year on average. Can you even lease a car for that?
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
The increasing benefit of leasing, is it removes the depreciation risk. If you're happy to have an older vehicle, that's not so much a problem. The issue is, would you be happy to have an older electric vehicle, and risk a major repair bill or the vehicle being uneconomical to repair?
I'm seriously considering leasing my next van, as nobody can really predict what's going to happen to used prices over the next 3-5 years.
I wouldn't have an older EV at the moment, which is part of the reason I'm sticking with ICE cars while I'm allowed to.
I've always just brought cars outright, normally high milage because I'm not afraid of repairs and servicing and high milage shaves thousands of the price. I brought an XJR once with 138K on it and put another 30K on it with no hassles at all. I brought my wife's car with 140K on it. I think this is probably the opposite of what you're meant to do though
I don't really get the leasing thing. I have loads of friends who pay £300 ish every month and then when the lease runs out they just get another car at £300 a month. You can spend 30K in 10 years and still not really own a car !
It sounds hugely expensive compared to what car ownership is currently costing me though. Depreciation is almost irrelevant to me since I tend to buy cars in the second half of their value band and don't expect them to be worth anything at the end - so it's simply the purchase price divided by the length of ownership, and if that's less than a grand a year then I'm happy. That's for relatively large cars too, I needed them for work and family reasons, but both of those are changing now so I'm thinking of something smaller when the current one goes.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
But, I want to switch to a bEV, but those on the market at the price I would buy (typically £5000) are not great. And the leasing figures do make sense - I will spend less over a 2-yr lease than on running the current petrol hybrid. I could spend more - £15000 on a much newer bEV, but then I'd most likely be losing on depreciation.
It's that annoying bit of small print that's making me doubt. What it says seems quite clear, regardless of normal leasing practice. We are not in normal times. I will call the leasing co with my concerns and report back...
If you had a quote for a car sub £35k car up to the 17th, the grant would have been £3,000, 18th onwards only £2,500. Crudely calculated, that’s £21 a month increase in lease costs over a 24 month agreement. If the car is £35k-50k then then £125 a month increase.
I work in the industry and it has caused chaos.
I would like an electric or a hybrid of some sort when the Renault needs replacing - and I still hope to get another few years out of it - but given what's said above I just don't think the economics stack up yet even if I want something a lot smaller than a Scenic.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
Leasing and used car ownership are both minefields in and of themselves, but I have had a much less stressful time running new cars on lease agreements than I have had with some of the used cars that I have run. I'm on a car scheme with work so I have to have something of a maximum age, but I'm considering buying rather than leasing next time. Ultimately though it's a numbers game. A nearly new car with manufacturers warranty on it, for the right net monthly cost after maintenance, consumables, depreciation? Sure! But if there's a lease deal which gets close to that after 2 years, I'll take the brand new car (sorry to the environment).
Lease companies can secure deals that a private consumer can't get near.
So, it appears I was worried about nothing more than the overly-general wording.