Yes, simply by registering a new car and driving it away you will have suffered from ‘depreciation.’
Yet some makes and models depreciate faster than others but, generally speaking all new cars loose money depreciating faster and faster the more and more miles you add. For those owners who come to sell their old car or trade in for a newer model within 3/4 years, some particular makes and models of cars may go on to create true disappointment and substantial financial loss for owners.
By leasing a new car instead of buying a new car, maintaining, owning or driving around in that shiny, brand-spanking new BMW or face-lift model new Ford for the next 2-4 years doesn’t have to be like this, in fact it is possible to even save money via leasing a new car.
Leasing a new car allows drivers to save money when compared to the typical 50% depreciation seen in many makes and models.
So, you have seen that new BMW X4 that you have always wanted. Great car, great engine and a fantastic four wheel drive system for the winter months (read review of the X4) but, just how much will it cost you to drive away this vehicle?
List price: £37,935
Depreciation after year 1: £31,700 (83.56%)
Depreciation after year 2: £26,050 (68.67%)
Depreciation after year 3: £21,400 (56.41%
According to What Car? the X4 will depreciate by 56.41% in 3 years, in other words it will drop £21,399.13 in value. Add in car finance £2845.12 interest (at 2.5% per year) and you are looking at £24,244.25 total cost to own and then get rid of your old X4 after 3 years.
All the above prices include VAT so to compare buying a new car with leasing an new car (like with like,) CarLease UK have compared the Personal Contract Hire figures for the same car.
Over 3 years, paying 6 payments in advance, the total number of payments is the initial 6 + 35 months, in other words 41 total.
To compare like with like, £24,244.25/41 = £591.32, lease the same car for 41 payments of just £473.68 per month for a top of the range BMW X4 and save £4810 over 3 years.
Does it apply to electric cars as well?
Does it ever!! A new Nissan Leaf, the single best selling electric car in the world will cost you £28,030 to drive away in from a Nissan dealer and will, according to What Car? depreciate by 68.3% over two years.
Yet you can lease the same car at Carlease UK for less than £529.27. A total of £5197.09 saving on a two year lease! This will once again include 6 payments in advance, but then will have 23 monthly payments, a total of 29. The monthly cost to a customer is therefore £708.48.
Family cars are better though, right?
You must be joking. A Vauxhall Zafira 1.6CDTi will cost you £28,450 and over 3 years, according to What Car? will depreciate by 72.1% in just 3 years time.
A 3 year lease will again be made up of 6 initial payments and 35 monthly payments, or 41 total. This equates to £552.33 per month whereas you can lease the same car for £325.50 per month and save £9300.03 over three years.
Is it any wonder that 61% of our car leasing deal savvy customers are repeat or referred by a friend???