Tag Archives: depreciation

Car leasing versus outright purchase

couple_convertible_pinkWhen we get such favourable feedback from females about a local car leasing business, we have to find out more.

For example, this is what Club member Jen in Chichester has to say about Pinksauce Leasing.

Fantastic service! I can’t recommend Chris and Lyndsay enough. I went to them needing a new car for a new job which involved a long commute. Not having any idea what make or model I wanted. They did all the research for me on MPG, showed me a lot of pictures and advised on several suitable cars. They were friendly and approachable and didn’t make me feel silly for knowing next to zero about cars! Talking independently about the best car for me rather than pushing certain makes due to commission. Simply fantastic!

And this is what Club member Shelley in Basingstoke tells us about them.

I couldn’t recommend Pinksauce Leasing enough! Lyndsay was extremely helpful, offering great advice and service, backed up with sound knowledge, expertise and experience. The deal I was offered was of fantastic value and through every step she was honest, fair and informative with great communication. Top lady!

Why Car Leasing is so popular

Car leasing has boomed over the last few years and for good financial reason.

Of course you can still buy a new car using finance and/or cash but when you come to sell it, you will take a seriously heavy depreciation hit which is hard to calculate and therefore too often ignored at the car shopping stage.

Just to give you a clue about the figures, according to research by CAP Automotive, depreciation will cost the typical motorist three times as much as they spend at the petrol pump. That brings it home, a potential loss of some 15-35% in the first year and up to 50% or more over three years. Or, in hard cash terms, buy a medium sized family car and three years later it’s worth c£12k less.

Whereas leasing of sorts means you pay a fixed monthly amount over an agreed term then either walk away at the end of the contract, buy the car off, or choose another car and sign a new contract. It’s certainly more transparent and easier to budget for! No wonder so many younger drivers are opting for this method.

Either way, it’s important to choose the best car for the job in hand which is where FOXY can help Club members, of course, with their car shopping choices.

For example, Personal Contract Hire (or Business Contract Hire) is based on a fixed annual mileage agreed when you take out the contract. You need to decide how many miles you are likely to drive each year before quotations can be obtained. Once you say how many miles you drive in a year and the car you’d like, the leasing business can prepare a quotation for you and advise where necessary.

About Pink Sauce

Pink Sauce Leasing is based in Chichester and run by Mr and Mrs Pink. No it’s not just a case of colouring their website pink to give it girl appeal – the name is for real! That’s Chris (Dad) and Lyndsay (Mum), covering new car leasing requests for motorists across Sussex and Hampshire.

Chris worked for several manufacturers and leading car dealership groups for some 20 years before deciding to do something about the treadmill approach of many businesses to selling cars. This is why he and Lyndsay decided to go solo, explains Chris.

“Some customers mentioned their purchase experience felt like being on a corporate conveyor belt which upset me because any new car purchase, bearing in mind these are always high ticket ones, should make a customer feel very special and yet few do. Whereas we look after all the boring stuff which the car dealers and finance partners need to allow our customers to enjoy a stress free car shopping experience.”

We’re pleased to meet you on our patch, Chris and Lyndsay.

For More Information

You can find out more about Pink Sauce Leasing here.
Website: http://www.pinksauceleasing.co.uk
Tel: 01243 767121
Email: info@pinksauceleasing.co.uk

For advice and hand holding support throughout the car shopping experience you would do well to join FOXY Lady Drivers Club in advance.

Depreciation, not fuel economy, is the real cash killer

Photo ack: which.co.uk
Photo ack: which.co.uk

Those of us who focus on fuel economy when buying a brand new car are wasting our time and money apparently.

The real cash-killer is depreciation according to experts in this field CAP Automotive.

Consumer research consistently encourages us to consider the cost of filling up with fuel. But choosing a car that holds its value delivers much bigger savings over time than fuel efficiency alone.

According to CAP’s unique car ownership cost figures, the average cash value lost by the typical medium family car bought 3 years ago is £12,559 – and rising.

Less presumably the discount you negotiated at the time of sale?

Whereas the same cars, driven 12,000 miles a year, have only burned an average of £4,000 in fuel.

Ford of Europe's Easy Fuel SystemUsing this example CAP suggests that depreciation has cost the typical motorist 3 times as much as they have spent at the pumps.

“The problem is that motorists think there is nothing they can do about depreciation” said Philip Nothard, CAP’s Retail & Consumer expert.

According to CAP’s free ‘Total Cost of Motoring’ calculator the total expenditure on fuel over 3 years for a typical medium family car ranges from around £1,600 for a super-efficient hybrid to around £5,700 for a performance coupe in the same ‘lower medium’ car sector.

But depreciation in the same sector ranges from about £8,000 over 3 years for one car that delivers standard mpg to more than £23,000 for a car that boasts unbeatable fuel economy.

For example CAP figures reveal that the least thirsty plug-in hybrid costs around £1,500 at the pumps over 36,000 miles. In contrast, a standard-engine Ford Mondeo 1.6 Graphite costs much more to fill up, at £5,000 over the same distance.

This means the Mondeo owner will only lose about £10,000 in depreciation over 3 years while she who diligently saved at the pumps in her expensive hybrid will wave goodbye to a whopping £34,000 when she comes to sell or trade her car in.

Sound advice we say. In a nutshell it makes sense to put depreciation on your new car buying homework list, especially when CAP’s ‘Total Cost of Motoring’ tool is free to use at their website. Alternatively if you buy a used car that’s more than 3 years old, someone else has likely paid the depreciation, so we’re back to looking keenly at mpg, VED and insurance groups to save a welcome bob or two.