Lease New Iq Or Keep Old Megane?

[Bug]

Hi,

Sorry to drag any readers into my quandry but any opinions on this would be dead handy as i am tying my head up in knotts.

Basically money is very tight which is why i havent jumped in to take on a lease car in replacement for my current ’96 Megane as I would feel irresponsible however, as far as i can see a new lease IQ would work out the same/marginally cheaper and i get no maintenance costs.

If I spend a conservative £1000 per year on MOT, maintenance and repairs, my road tax, RAC cover and fuel of (60litre tank £71 to fill) a tank a week (approx 490 miles=37mpg) then that totals over a 52 week year £5,456

If I lease a new IQ from work, no MOT or maintenance charges, no road tax, no RAC required, £227 a month lease cost and fuel of (38litres tank £45 to fill) a tank per week (alleged figures of 58mpg) then that totals over a 52 week year £5410

Am I missing something? It’s a four year lease but my current car wont last 4 years and I cannot buy a new one personally or used even. I do approx 25k miles per year so garage costs are currently frequent. £1000 is a very conservative figure as I did £679 in Feb, £200 in Dec (tyres), £200 Nov (brakes), £300 Sept (exhaust) £400 Aug (rad and MOT bits) etc. There was more but just provided a very brief list.

The MPG on the IQ will be a big variable, is 58mpg easily attainable? I have been reading through posts and it seems most do get that, driving like Angels no doubt but surely one would have to try hard to get the MPG down to the Meganes 37mpg?

I am afraid of stitching myself up by going for the lease car and afraid to have a monthly bill where there sort of isn’t one right now however, from the figures it looks as if the IQ actually costs less and is the sensible option as I cant be caught out anymore by surprise bills, they are all included!

I have a nice spreadsheet of this if anyone is more interested in how I got to the conclusion but experience shows the longer the thread the less likely anyone is to respond so wanted to keep it light.

Thanks

Natalie

[stormuk]

Hi

As long as you like the IQ which is the main thing IMO

You might want to look at a Toyota PCP instead of the lease.

If you go for the Red Base model £10,000

You should be able to get discount of around £600

Add in the mystical £100 for 3 years three servicing -£100

Reduce by £500 PCP deposit

Five Years Warranty wich means depending on mileage nothing to pay for three years.

Free AA first year and then discounted there after

Use the toyota pcp quote to find how much you could get one for - Id look but just about to log off and go home :)

I did the same thing with a legacy and even though I do little mileage Ill be better off with the newer car over three years - and in addition to discount

I managed to get more than my coar was worth aswell in PX.

You can have my spreadsheet to compare if you want :)

[Bug]

Hi Stormuk,

Yup, i do like the IQ. Originally i would have preferred the Yaris but thats a bit more and as i said, its all about the money at the mo.

With the five year warranty does that mean you pay for tires and wear and tear things? With the lease i pay the fuel and insurance and anything that costs me over £10 will be refunded.

I will look at the Toyota deals but to be honest, because the state of my finances i doubt i would get more credit. Only reason i would with the lease is thats its through my work so i dont see it having the usual checks, comes straight from wages.

Um, sorry to be dumb what what is PCP?

Nat

[IronIron]

I looked at leasing and PCP before buying my IQ outright.

The reasons I didnt go for the others are as follows:

Leasing

When you hand back after leasing you get a bill for everything wrong cosmetically with the car. Before anyone jumps in and disputes that, I should rather say you can get a bill. There is a dent in X, thats £500 you owe us is quite possible on handing back the lease car at the end of your term.

There is a solution: Use a company that prepares cars for handing back after leasing.

Either way its an unknown bill at the end of the term and I didnt want that. All my previous cars have attracted scrapes and dents through no fault of my own. Under leasing you will have to fix all of these perfectly else pay dearly on hand back. They wont make you pay for every little mark, companies have different rules. They might let you have one or two light dents per panel, but get three and they make you pay for a whole panel re-spray.

PCP (Explanation)

The only reason I can see to do PCP at all is because your car will be worth more than the guaranteed value at the end of the term and gives you a deposit for the next car. I checked PCP for the IQ with my Toyota dealer and the guaranteed value was set so high I could not convince myself that I would get a guaranteed return at the end.

I also created a big spreadsheet and compared the various options. Over 3 years both leasing and PCP cost significantly more than buying new and selling (or trading) it yourself at the end of 3 yrs.

If you cant save up and buy in cash, then I would go for PCP, Bank Loan, Leasing (in that order).

[Bug]

Hi IronIron,

Thanks, that link was pretty comprehensive for PCP!

As long as the MPG is achievable on the IQ then it seems its time to do away with the Megane (another £180 yesterday on MOT, another £100 on Road Tax from Aug). The £100 fuel saving in the IQ, no tax or RAC saves £29 a month, no budget of £88 for Maintenance (£1000/12 months) all quickly adds up to negating the actual finance cost. MOT advisory yesterday had Excessive corrosion on chassis so next year it will cost far more or be dead and i'll be without a car then so this does seem a time to do it (as the cambelt is due to be replaced in 13k miles(£249)).

Thanks for both your thoughts, i am now a bit concerned about the faults the lease company could find on hand back, makes sense to be weary.

If anyone else has any somments would be greatly appreciated before Monday.

Thanks

Natalie

[IronIron]

This is what scared me away from leasing: The Lease Car Guide

I highly recommend you read it before taking on a leasing contract.