Strategy
Choosing a car: lease, budget or premium
You always have a car; the only question is how you pay for it. Lease it for one steady monthly cost, or buy one of three tiers. The catch: a cheaper car costs less to buy and more to own, so the sticker price is only half the story.
Four ways to have a car
- Lease — one all-in monthly cost, no upkeep, no depreciation, no breakdown risk. You own nothing, and you pay a premium for the peace of mind.
- Budget (~£8k) — cheap to buy, but thirstier to run, quick to lose value and the most likely to break down.
- Mid-range (~£18k) — a sensible balance of price, running cost and reliability.
- Premium (~£35k) — dear up front, but cheapest to run, slowest to depreciate and the most reliable.
Total cost of ownership, not sticker price
An owned car carries a yearly running cost, loses value through depreciation, and can break down. Add those up over the years you keep it and the budget car's price advantage shrinks, because it runs dearer and breaks down more.
Breakdowns and write-offs
Each year an owned car rolls for a fault, and the odds rise as it ages. Most faults are a repair bill; occasionally the car is a write-off, its value gone, and you fall back to a lease until you buy again. Cheaper, older cars fail more often, which is the reliability cost the sticker price hides.
The budget car is rarely the bargain it looks: higher running costs and breakdowns eat much of the saving. A lease is peace of mind at a steady premium. Mid-range is usually the sweet spot. And whatever you pick, don't tie up cash you might need for an emergency in a fast-depreciating car.