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Old 09.10.2011, 16:08
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Car Leasing - Brand New vs Occasion

Hi All,

Just need your thoughts on this.

After weeks of reading and weighing the pro's and con's etc. I finally decided i want to lease a brand new car worth 32,500 chf (2011 Model) including the descent extras etc.

So i went to a dealer to find out how much is the monthly installment for this car and the guy told me it will be around 300-350 chf per month on 48 month lease. He also told me there is no deposit needed, so i said to my self this is Brilliant!

However, while walking aroud the dealers site, I spotted the same car (with same extras too) parked on the corner labelled as Occasion now valued at 19,900 chf. A closer inspection on the label and it was registered on May 2011, has 20,000 km on the clock plus winter rubber.

This bugged me a lot, because i think the car i want to get has very low Re-Sale value. Imagine after 4 years, it will be worth nothing.

So my question is.. Is it worth leasing the Brand New Car or get the Occasion instead?

Also is there a difference in leasing brand new to leasing occasion? because the guy can't tell me how much is the installment if i was to get the occasion because he said it depends on the bank??

Your input is much appreciated.

Thanks in advance.
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Old 09.10.2011, 16:17
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Re: Car Leasing - Brand New vs Occasion

personally leasing a new car is not a good idea except if you have a company (or could use the lease for tax purposes).

Last year I went through the same process and in the end settled for a 4 years old model for almost half the price of the new.

IMHO, 3-4 year old car is a good deal.

Also you might also consider a personal loan (upto 20K) and buy in cash, this means you own the car and will have more flexibility. Migro bank offers good deal.

good luck
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Old 09.10.2011, 16:30
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Re: Car Leasing - Brand New vs Occasion

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personally leasing a new car is not a good idea except if you have a company (or could use the lease for tax purposes).

Last year I went through the same process and in the end settled for a 4 years old model for almost half the price of the new.

IMHO, 3-4 year old car is a good deal.

Also you might also consider a personal loan (upto 20K) and buy in cash, this means you own the car and will have more flexibility. Migro bank offers good deal.

good luck
Plus, AFAIK, the interest on the loan can be deducted from the tax-bill.
It will also help you avoid buying a car that is actually too expensive to own for you....
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Old 09.10.2011, 16:32
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Re: Car Leasing - Brand New vs Occasion

And, of course, a lot depends on what car (manufacturer, model) it actually is.
A four year old Ssang Yong has a different resale value than a four year old Volkswagen Passat....
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Old 09.10.2011, 16:38
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Re: Car Leasing - Brand New vs Occasion

I suppose, leasing an old car would possibly need a deposit as against the new car which needed no deposit as the original post states?

I have never leased a car and hence the following question - at the end of lease, is it better to pay the difference and buy the car or just return the car and look for the next one? I know a lot would depend upon the make of the car, but what are the general thoughts?
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Old 09.10.2011, 16:44
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Re: Car Leasing - Brand New vs Occasion

The no deposit 'new' car offer is rather expensive as you can see. Far better to by the used one. If you cant afford the deposit you really cant afford the car.
I know someone who had a Ford for 99 a month for 3 years, as the car was not in perfect condition at the end of the lease she ended up buying, it cost her 299 a month for the next 3 years.
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Old 09.10.2011, 17:09
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Re: Car Leasing - Brand New vs Occasion

For 20k CHF, let's say downpayment is 2000 (up to 10%) and the interest rate is a bit higher than leasing new vehicles. For this amount, the diference shouldn't be significant. At least you do a downpayment and you know for sure your monthly payment will be lower. And 20k vs. 32k (OMG - 12k discount for 20.000km only???) should already give you the right direction. Good luck!
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Old 09.10.2011, 17:23
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personally leasing a new car is not a good idea except if you have a company (or could use the lease for tax purposes).

Last year I went through the same process and in the end settled for a 4 years old model for almost half the price of the new.

IMHO, 3-4 year old car is a good deal.

Also you might also consider a personal loan (upto 20K) and buy in cash, this means you own the car and will have more flexibility. Migro bank offers good deal.

good luck
Thanks for the input.

Does migro bank loan money to someone who's only been here for a year?

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Plus, AFAIK, the interest on the loan can be deducted from the tax-bill.
It will also help you avoid buying a car that is actually too expensive to own for you....
Thanks for the reply.

How do you mean the interest on the loan can be deducted from the tax bill?

Last edited by Longbyt; 10.10.2011 at 10:26. Reason: same poster, consecutive posts
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Old 09.10.2011, 17:28
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Re: Car Leasing - Brand New vs Occasion

It depends on what you want. If the used car has the same specs you want buy/lease the used one.

But be sure you are talking about the same car. The used car should have the new price on it as well as the amount of options it has.
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Old 09.10.2011, 17:28
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Re: Car Leasing - Brand New vs Occasion

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Thanks for the reply.

How do you mean the interest on the loan can be deducted from the tax bill?
If you fill in a tax return you have the option. If you earn less than 120K you may or may not have the option of doing one.
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Old 09.10.2011, 17:29
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And, of course, a lot depends on what car (manufacturer, model) it actually is.
A four year old Ssang Yong has a different resale value than a four year old Volkswagen Passat....
You are absolutely right. This is why when i went to BMW Dealer, i said to my self i might as well go for the new one after seeing the prices on the second hand vehicles.

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I suppose, leasing an old car would possibly need a deposit as against the new car which needed no deposit as the original post states?

I have never leased a car and hence the following question - at the end of lease, is it better to pay the difference and buy the car or just return the car and look for the next one? I know a lot would depend upon the make of the car, but what are the general thoughts?
Same here.

Can someone kindly verify if leasing a second hand car requires deposit? this doesn't make sense if that's the case.

Thanks

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The no deposit 'new' car offer is rather expensive as you can see. Far better to by the used one. If you cant afford the deposit you really cant afford the car.
I know someone who had a Ford for 99 a month for 3 years, as the car was not in perfect condition at the end of the lease she ended up buying, it cost her 299 a month for the next 3 years.
Exactly what i thought. But do you have rough idea what percentage is the deposit for leasing a second hand car?

Thanks

Last edited by Longbyt; 10.10.2011 at 10:26. Reason: same poster, consecutive posts
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Old 09.10.2011, 17:35
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Re: Car Leasing - Brand New vs Occasion

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Same here.

Can someone kindly verify if leasing a second hand car requires deposit? this doesn't make sense if that's the case.

Thanks
Almost certainly does. A manufacture may offer special terms, which accounts for the depreciation. Nothing in life is free.
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Old 09.10.2011, 17:37
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For 20k CHF, let's say downpayment is 2000 (up to 10%) and the interest rate is a bit higher than leasing new vehicles. For this amount, the diference shouldn't be significant. At least you do a downpayment and you know for sure your monthly payment will be lower. And 20k vs. 32k (OMG - 12k discount for 20.000km only???) should already give you the right direction. Good luck!
Exactly what i thought. This is why i am more convinced of getting the Occasion instead. Since its only a couple of months old, and for sure it still under the 3 year warranty etc on it.

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It depends on what you want. If the used car has the same specs you want buy/lease the used one.

But be sure you are talking about the same car. The used car should have the new price on it as well as the amount of options it has.
I think i am now in favor of leasing the second hand car. And yes the car has exactly the same specs and extras apart from the seat. The new one has all leather whereas the second hand one has part leather.

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If you fill in a tax return you have the option. If you earn less than 120K you may or may not have the option of doing one.
Thanks for the valuable info.

Last edited by Longbyt; 10.10.2011 at 10:27. Reason: Please do a search for ' Multiquote '!
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