Have found due to massive depreciation on a new ev at present ,only one vehicle where your safe to buy outright keep 3 yrs say, and not lose a bundle compared to leasing it instead , INFACT although i dont have a glass ball i do beleive you might buck the trend and be a couple of grand ahead when selling on after 3 yrs .
Ellis rochlin
Well do spill the beans then please!
I do think a lot of people who own their cars, rather than lease, must be both buying and selling very badly if leasing is ending up cheaper for them though! Leasing is a for profit business, not a charity and the total lease cost should be all the cars depreciation and a profit on top for the lease company. This should almost always be more cost then buying yourself, running for a number of years, then selling.
I suppose if someone buys at full retail and then sells at low trade, leasing might beat that situation. Someone buying with savvy though, say a pre reg new car with massive discount, who then sells it on properly after three years with a decent private advert and a little effort will be way better off than the leaser was, apart from the odd case where the leasing company have totally screwed up with the depreciation model they used. I suppose the vast majority are too lazy to sell privately though.
I do think a lot of people who own their cars, rather than lease, must be both buying and selling very badly if leasing is ending up cheaper for them though! Leasing is a for profit business, not a charity and the total lease cost should be all the cars depreciation and a profit on top for the lease company. This should almost always be more cost then buying yourself, running for a number of years, then selling.
I suppose if someone buys at full retail and then sells at low trade, leasing might beat that situation. Someone buying with savvy though, say a pre reg new car with massive discount, who then sells it on properly after three years with a decent private advert and a little effort will be way better off than the leaser was, apart from the odd case where the leasing company have totally screwed up with the depreciation model they used. I suppose the vast majority are too lazy to sell privately though.
Lots of OEMs are pushing demo EVs to dealerships that will never sell. So you end up with lots of them available all at the same time. They can use this to "hold" the residual on your lease.
Personally, its abit silly to buy a new EV, after 2/3 years it's going to be so out of date compared to what's coming down the pipe. I think alot of old school brains are going to get bit hard by their undesirable now valueless EVs. Thinking to wil be worth 15k when it will be more like 4k. Selling privately has been an absolute time waster for at least 5 years now, the extra grand or so isn't worth the hassle at all.
Personally, its abit silly to buy a new EV, after 2/3 years it's going to be so out of date compared to what's coming down the pipe. I think alot of old school brains are going to get bit hard by their undesirable now valueless EVs. Thinking to wil be worth 15k when it will be more like 4k. Selling privately has been an absolute time waster for at least 5 years now, the extra grand or so isn't worth the hassle at all.
I bought my Vivaro 'ex demo' (really pre-reg and left for a year) for cash, and I've still not seen one as cheap. So doubt I'll lose much on it come the cheap E-transit sport RT models.
You've just got to snipe the right vehicle.
You've just got to snipe the right vehicle.
I got a 19.6% discount on my e208 with only 10 miles on the clock, as a pre-registered dealer car. There were three other e208s on the forecourt, all pre-reg' and no more than 300 miles on the clock. And no, there weren't similar prices for anything in petrol/diesel form.
I'm not saying that discounted cash purchase is right for everyone, every time. I've used leasing and dealer financing when they looked the best option for my use profile. All I'd say is that there's a tacit assumption, pushed by finance companies, that renewing every 3-4 years is the baseline. While this was a 'sweet spot' for ICEVs, I don't think it's the same for EVs.
For an ICEV, 3-4 years often represented the best point in time to change in terms of mechanical reliability. But EVs don't have that immensely complex mechanical drivetrain. So perhaps make any EV cost comparisons on the basis of a longer period of ownership.
I'm not saying that discounted cash purchase is right for everyone, every time. I've used leasing and dealer financing when they looked the best option for my use profile. All I'd say is that there's a tacit assumption, pushed by finance companies, that renewing every 3-4 years is the baseline. While this was a 'sweet spot' for ICEVs, I don't think it's the same for EVs.
For an ICEV, 3-4 years often represented the best point in time to change in terms of mechanical reliability. But EVs don't have that immensely complex mechanical drivetrain. So perhaps make any EV cost comparisons on the basis of a longer period of ownership.
Surely it all depends if you can do something better with your capital. But you are being taxed on interest earned you might as well buy rather than pay depreciation plus interest.
Leasing for me. Let them take the hit then buy it if you like.
On my third lease now, an X Power, the lease company got 40% discount from MG so the car to them was about £23k .
My 2 year lease is costing me all in £6500 and BCA re marketing have already estimated a sell to me price of £17k if i want it.
Last car was a model 3. 40k new at time. Lease plus purchase £36k.
Flexibility, my MG lease is 2 years i can extend to 6 years , i do not know what future holds, what will and will not be available so option to extend on if nothing going.
Also if want to buy, of course get a value then a cost to extend lease another year and estimate cars value at 3 years old so if it is in your favour then lease a further year and then buy it at the new lower price.
Leasing for me is all about flexibility but you have to follow the deals,’i wanted an X Power and watched deals for 9 months before Sept 24 came along and the deals were crazy, cheaper to lease than an MG4 SE.
Since then as my broker said and before then the deals have never been even close to what mine was, £215 a month, 6 down.
On my third lease now, an X Power, the lease company got 40% discount from MG so the car to them was about £23k .
My 2 year lease is costing me all in £6500 and BCA re marketing have already estimated a sell to me price of £17k if i want it.
Last car was a model 3. 40k new at time. Lease plus purchase £36k.
Flexibility, my MG lease is 2 years i can extend to 6 years , i do not know what future holds, what will and will not be available so option to extend on if nothing going.
Also if want to buy, of course get a value then a cost to extend lease another year and estimate cars value at 3 years old so if it is in your favour then lease a further year and then buy it at the new lower price.
Leasing for me is all about flexibility but you have to follow the deals,’i wanted an X Power and watched deals for 9 months before Sept 24 came along and the deals were crazy, cheaper to lease than an MG4 SE.
Since then as my broker said and before then the deals have never been even close to what mine was, £215 a month, 6 down.
I've asked you for financial advice??? You are getting confused methinks. Is it not too early to be drinking already at 8.30am? 😉
As a high rate taxpayer with access to a salary sacrifice scheme, then leasing through that scheme is cheapest for me. Sometimes not by much after dealer offers and lease company profit margins, but it works out best for me.
My first EV a Kia E-Niro which I've had for nearly five years still serves me well and to be honest I've not found anything that prompts a change or beats it yet, even the new Kia offerings. So if it ain't broke I ain't fixing it.
Exactly. There is this common misconception that EV tech is evolving rapidly in short timescales that renders 2 or 3 year old (let alone 5 year old) models obsolete/obsolescent. That may have been true in 2018 or 2019 when mainstream was small battery and still relatively expensive Zoe’s and Leafs.
Let’s check mainstream EVs in 2025.
Range: nope, roughly similar compared to 3 years ago at ~ 250 - 350 summer and 200 - 300 winter. This is with the typical battery sizes. You want more range, well a bigger battery will be the way to do it.
Charging: Nope, still anything from around 18 - 45 minutes (depending on car) at a rapid to go from ~20% - 80%.
Battery capacity: Nope, still around the 60kWh to 77kWh for mainstream EVs.
Battery tech: Nope, no big improvements there and nothing coming in the next few years for mainstream purchase.
Efficiency: Same old deal really, big SUVs sit at about 3-3.5 mi/kWh average. More efficient designs about 4 -4.5 average. Note I am looking at all year average over all weather conditions.
Let’s check mainstream EVs in 2025.
Range: nope, roughly similar compared to 3 years ago at ~ 250 - 350 summer and 200 - 300 winter. This is with the typical battery sizes. You want more range, well a bigger battery will be the way to do it.
Charging: Nope, still anything from around 18 - 45 minutes (depending on car) at a rapid to go from ~20% - 80%.
Battery capacity: Nope, still around the 60kWh to 77kWh for mainstream EVs.
Battery tech: Nope, no big improvements there and nothing coming in the next few years for mainstream purchase.
Efficiency: Same old deal really, big SUVs sit at about 3-3.5 mi/kWh average. More efficient designs about 4 -4.5 average. Note I am looking at all year average over all weather conditions.
Been looking to buy a new car and the 43 month old trade in would have cost me £78 per month more on PCP at the time as against the bank loan I used.to buy it outright. I know it’s now history and not relevant to todays market but I’m not tempted by PCP deals from my experiences but could be proved wrong in 2028.
Less than nothing to be fair, I’ve saved an absolute fortune compared to my previous van and it was written off a couple of years ago for which I got a £6k payout after opting to keep the van.
It’s getting pretty beat up now and I don’t think anyone would buy it but it’s certainly served me well and I’ve no reason to believe that it won’t continue to do so.
Having to start paying around £350 a year road tax from next year tings a little though! ☹
It’s getting pretty beat up now and I don’t think anyone would buy it but it’s certainly served me well and I’ve no reason to believe that it won’t continue to do so.
Having to start paying around £350 a year road tax from next year tings a little though! ☹
Not if you buy used from pre April 2025.
I have a friend who won’t go EV until he is forced to. He says EVs are not a proven technology and will be replaced by synthetic fuel cars or hydrogen. He watches a lot of GBNews for his “news”.
I told him my wife and I have saved about £8,000 in fuel costs over the past 5 years plus with our two EVs. If we factor in less servicing and lower tax for both EVs, then about £10,000.
That was enough to have him change the subject.
I have a friend who won’t go EV until he is forced to. He says EVs are not a proven technology and will be replaced by synthetic fuel cars or hydrogen. He watches a lot of GBNews for his “news”.
I told him my wife and I have saved about £8,000 in fuel costs over the past 5 years plus with our two EVs. If we factor in less servicing and lower tax for both EVs, then about £10,000.
That was enough to have him change the subject.
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