A lot of the benefit seems to be tax efficiency. After running new vehicles for years and looking at the depreciation and general cost I decided to run second hand and do something else tax efficient with the money. Like buying machinery which doesn’t drop like a stone the minute you sit in it.
I think it really depends what you want. Some people really like new cars and are happy to pay through the nose to drive one. If I was buying new again it still wouldn’t be leasing as it’s still the most expensive way to run a car.
Anyone heard the new hi lux ad on the radio at the minute? Only £199/month? Yep after £10,500 up front you can do max 24,000 miles then a further £12,000 if you want to buy it after the 4 years.
My maths make that minimum cost of approx £15,000 for the first 24,000 miles. Then you’ve still got to pay tyres, brakes, service, getting the scratches sorted before you hand it back. Paying the admin fee because you don’t want to buy at the end and the admin fee at the start to get the thing in the first place. Must work out about 80p mile before you even put fuel, insurance and a man in.
tje person who buys it at the auction pays £10-14,000. Probably could do another 100,000 miles, service when they want themselves, not worry about scratches etc and still sell it four years later for £5-8. So they get four times the mileage for a third of the price.
and the pleasure of not dealing with idiots at the franchised dealer!