Car Leasing option

[Welly]

Just had a Fax through at work advertising a brand new Citroen C1 1.0 VTR for £109.00/month inc VAT over 2 years.

There's a £750.00 deposit first then 23 months, then get another one or walk....

Comparing her indoor's Astra:

Road Tax = £230.00 (C1 = £20.00 )
Fuel based on 5500 miles = £1230.00 (C1 based on 7000 miles, assuming 52mpg, - I'd use it at weekends instead of the Volvo = £826.00)
Yearly service + MOT/repairs = £300.00 (C1 = £150.00? no MOT needed, might only need a 2-yearly service?)
Insewerance = £270.00 (C1 is group 2 so might only be £200.00?)

So already we're seeing savings of £834.00/year in running costs alone.

The Lease would cost £1628.00/year (less saving above) = £794.00/year or £66.00/month

If I've got my maths right she could get a new C1 for a net additional cost of £66.00/month

I might put this to her later, then post back tomorrow when she says no in a typical "how can you spend money to save money?" kinda way

What prompted this was the Astra MOT yesterday and basic oil change, and a new brake pipe (fail) all at a cost of £170.00. On top of this I know the Air Con has crapped out and needs a new conny/pipework so it's all looking kinda expensive soon.....

[rapport25]

I would lease Welly.

I know you never own it. But the idea of a new motor every 2-3 yrs has its benefits.

Been considering selling both of mine and leasing. Ling cars has some great deals.

[Welly]

I looked at leasing something before buying the Volvo and had about £250.00 per month as a budget and could have had one or two cars I'd have never been able to finance myself but then thinking of 3 grand a year going out and never owning it kinda stopped me.

This offer though is attractively cheap and pretty low risk. I've spoken to the lease company this afternoon to quote me on a lower mileage. Get this - they said if I chose one without Air Con it would cost more to lease because the residual would be less. I'm guessing they're betting on these tiny cars being worth more than usual in a couple of years to coincide with the rising cost of fuel etc. so punters just pay the cost of (improving) depreciation.