Our last car, a brand-new Skoda Octavia we used to pay monthly to cover the cost. At the end of the three years of payments we had the choice of an optional final payment to keep the car. Yes, it’s great we have the car at the end (I guess!). But we still have a fair bit left to pay on our last payment as we put it on our credit card. We just didn’t have that kind of money available to us in one lump sum! Now the car is getting older its needing more work on it. We are juggling the cost of maintaining it. I wonder whether we did the right think sticking with the car or whether we should have considered leasing from the offset instead.
Looking at the benefits of leasing I wish we had done a bit more research first! Although I do understand why I stuck with our Skoda. As it was brand new, we had more flexibility over the customisable choices when it was first built. We wanted rear air bags for the kids which most cars don’t have and that safety feature came at a cost as it meant taking on a new car.
Minimise the effect of depreciation
As soon as our new car left the forecourt its value plummeted. It’s quite a scary thought really if it hadn’t been for the fact we had such a safe car according to EURO NCAP I think I would have cried! With leasing the impact of depreciation is much smaller just for the lease term you take out rather than the full value of the car.
Don’t worry about maintenance costs
I know with leasing you hand the car back after the term finishes but then you can move onto another new car without panicking about the raising costs of taking your car to be fixed at a garage. Cars start to have more faults due to wear and tear as the years progress.
Keep control of your finances
With leasing you pay a set amount each month, so you know where you are. With our car now the costs vary dramatically depending on whether it’s having a good month reliability wise! I don’t like the uncertainty of this. With leasing I would know exactly how much I had to pay each month. Looking at car leasing companies it would seem I could lease the Skoda Octavia from £101.63 a month. There are other costs factored in like the initial rental cost and a processing fee but on balance it still would have worked out cheaper for us.
No need to book the MoT
If you take a short lease term you don’t have to worry about the cost of booking your cars MoT. I always worry our car will pass and pray it won’t need too many expensive repairs!
Our car is now four years old and there is probably new technology out there to keep us safer on the roads. We have committed to this car now as we chose to make that final payment. If we had been leasing, we would have already moved onto our next car!