Some years ago, whilst working in Scotland I was introduced to the son of a Laird. A bit of a stereotypical playboy really, he had everything. I recall going out with him and my cousin in Aberdeen; it was like walking with a woman magnet. I was almost led to believe that people of such standing do not suffer the same pains as us mortals, however, that next morning when we all met up in his uncle’s castle for some breakfast, he too was nursing a hangover, which just goes to show we are all human. This man had every toy you could think of, including an incredible scalextric set spanning two completely separate and very large rooms, a kite that once launched took its operator with it, and the most remarkably quick VW Golf, that back then was of a specification that put most super to shame. It was simply awesome!
As possibly one of the most eligible bachelors in Scotland at the time, it appeared to me that this one was actually quite lonely. My cousin and he were both helicopter pilots and I was informed that he was actually quite miserable due to his infamy and marital status. I guess having everything is not actually always what it’s cracked up to be.
Our friendship was cut short due to circumstances; I was posted back to England, and his company offered him a desirable career move to the Scottish aisles. We were both (and I still am) in that category of person whom are quite useless at staying in contact with people. Not a very endearing quality I know and therefore it was almost inevitable that we would lose contact quite quickly.
I am thankful that we met, and in the brief time that we knew each other he taught me a few things;
Firstly, that you’re never too old to play scalextric!
Secondly, that if you’ve become airborne with the kite you were supposed to be flying, it’s best to hang on!
Thirdly, if you want to own the best cars on the market, it’s best to lease them!
I only ever signed up to two of those ideas!
I can understand businesses that can benefit from the tax breaks associated with leasing, and perhaps individuals with high disposable incomes may view this as quite a good way forward, as anybody who leases a vehicle has varying levels of hassle removed from the equation i.e.
- You don’t pay the road tax
- If involved in an accident you will get a new car the same if not next day
- The servicing costs are absorbed by the leasing company
- Vehicle recovery services are included
- Apart from fuel, you will only be required to pay a single monthly payment
- The costs are tax deductable
The above may seem like a very good reason never to buy a car again, but I couldn’t sign up to this. To me owning a car makes it a part of the family unit and associated routine. The novelty of washing somebody else’s car every weekend would wear off as quickly as if I was to change the nappies of somebody else’s child for any length of time yet I would no more wish to be accompanied by a child with constantly dirty nappies as I would drive a continually dirty lease car. Perhaps not the most PC of anecdotes but nevertheless, I am a fan of the word "clean" and would wish that any car I use would remain in as such!
Also, whilst I do aspire to own an Aston Martin, I am a realist and it would take a quite dramatic change in my finances for that to become a reality. The lease costs associated with such a car run into thousands of British pounds per month and therefore leasing takes me no closer to realising my ambition.
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Once a
car lease expires the car is returned to the leasing company, with some leases you are no worse off (unless there are associated balloon fees incorporated into the contract), but you are also no better off either. If you buy a car, you may initially need to borrow money to
finance the purchase, but there is a residual value which doesn’t disappear just because you have finished paying off the loan. The car is yours!
Lease companies are going concerns and highly profitable, it is always worth remembering that as no business becomes profitable by giving things away that the DIY method, in this case purchasing a car may offer up more benefit to you. The ultimate benefit in leasing a car has to be convenience and the leasing companies cash in on that by charging a premium on the monthly payments. I suggest that in most cases the monthly fee far outweighs the benefit listed in 1-7 (above) alone.
I will be looking at another car as soon as finances allow, which could be some time. Just to put the record straight, I will be
buying and not
leasing for the foreseeable future.
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