Owning a more expensive car

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#2661924 23-Feb-2021 18:43

Has anyone on here tried Mercury's EVDrive leasing system? It seems an interesting way to have a reasonably new car for a well-define TCO. Also a good way to dip your toe into EV ownership without a long term commitment

Handle9

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#2661927 23-Feb-2021 18:54

If you are looking at going offroad you'll find most decent 4x4 vehicles will hold their value pretty well, especially Toyotas. It's one of those things, if you want nice toys they do cost money.

Mitsubishis (Triton, Pajero, Pajero Sport) are generally a cheaper way to enter but will depreciate faster. I have a Pajero and they are very robust, simple cars. If you are doing reasonable off-roading you will find maintenance and repairs add up but I view it as a hobby rather than a means of transport.

I wouldn't touch a Landrover with air suspension, it's a nice idea and they drive very well but not something you want failing when you are in the back of beyond.

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#2661937 23-Feb-2021 19:57

shk292:

Has anyone on here tried Mercury's EVDrive leasing system? It seems an interesting way to have a reasonably new car for a well-define TCO. Also a good way to dip your toe into EV ownership without a long term commitment

I've looked into it as well and while it includes insurance and maintenance, it still seems kinda pricey - I also don't think they're new. The monthly 12 month subscription cost of a Gen 4 Leaf from them is not that much more than my performance specced Model 3 + insurance. A new Model 3 SR+ would probably be less.

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shk292

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#2661986 23-Feb-2021 22:27

Obraik:

shk292:

Has anyone on here tried Mercury's EVDrive leasing system? It seems an interesting way to have a reasonably new car for a well-define TCO. Also a good way to dip your toe into EV ownership without a long term commitment

I've looked into it as well and while it includes insurance and maintenance, it still seems kinda pricey - I also don't think they're new. The monthly 12 month subscription cost of a Gen 4 Leaf from them is not that much more than my performance specced Model 3 + insurance. A new Model 3 SR+ would probably be less.

I was comparing with the TCO of my current (albeit expensive European) car, which I reckon is close to $1k per month if I'm realistic about depreciation. So $599 for a Leaf, knowing there are no fuel charges, depreciation, road tax etc etc is an interesting comparison. You're right though, this isn't for a new one

What costs for your Tesla are you including for comparison?

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#2661993 23-Feb-2021 23:12

shk292:

Has anyone on here tried Mercury's EVDrive leasing system? It seems an interesting way to have a reasonably new car for a well-define TCO. Also a good way to dip your toe into EV ownership without a long term commitment

Firstly they have the Nissan leaf generation's wrong. The old shape is the first generation, and the current shape is the 2nd generation. Nissan have yet to produce a 3rd of 4th generation.

Whole website could do with a review.

Obviously kind of expensive. for a 2014 leaf, Even on a 12 month term its 599/mo

My 2014 leaf cost $12,000 + about $1000 in costs to get it how I like it. Add $500 a year in maintenance and $600 a year in insurance, and my car will cost $15,200. Break even point is only 25.4 months, and it's not like the car will depreciate to zero in that time.

Prices are higher for shorter terms. Arguable owning the car outright would be more flexible than leasing on a 12 month term. If you needs change in 6mo you can allways sell the car an buy something else.

As such it is likely to appeal to the following:

People with medium term vehicle needs. I.e. Family that only normally need one car, with a family member seconded to a different workplace for 3 months.
People who want to trial in EV for a month.
People with long commutes that are costing them big $$ in petrol that can't raise finance to buy an EV in their own right.

In the last case, somebody doing a 200km round trip commute 5 days a week could easily be spending $40 a day or $840 a month in fuel. A leaf would use around $120 in power at my user rate. For such a person getting a 40kWh leaf incl maintenance & insurance for $1099 a month could well be very attractive given they would be clocking up maintenance expenses quickly at around 50,000km a year, along with rapidly depreciating their vehicle. Few other lease car options will grant unlimited mileage.

Obraik

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#2662095 24-Feb-2021 09:51

shk292:

I was comparing with the TCO of my current (albeit expensive European) car, which I reckon is close to $1k per month if I'm realistic about depreciation. So $599 for a Leaf, knowing there are no fuel charges, depreciation, road tax etc etc is an interesting comparison. You're right though, this isn't for a new one

What costs for your Tesla are you including for comparison?

On top of what I pay for the car loan, I was adding on tyres and insurance. I hadn't included depreciation

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afe66

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#2662155 24-Feb-2021 12:04

I wonder if people would be do keen on buying cars if we had the leasing system for new cars they have in uk.

It seems actually buying cars is now much rarer than here and people upgrade their cars every 3 years to a newer leased model with more safety and features.

I wonder if we look at cars as assets because they are things we have to buy and own outright and so tie up a fare amount of cash in.

Often when I look at EV leading programes in uk, its with a sense if I wish we had that here...

My uk friends are all driving cars less than 3 years old and leased vrs my 2014 leaf and 2006 focus.

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Fred99

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#2662284 24-Feb-2021 18:18

afe66: I wonder if people would be do keen on buying cars if we had the leasing system for new cars they have in uk.

It seems actually buying cars is now much rarer than here and people upgrade their cars every 3 years to a newer leased model with more safety and features.

Salting the roads in some areas and the "MOT test" kicking in after 3 years might be a significant factor in this.

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#2662377 24-Feb-2021 22:09

My cars have all been cheap and old due to limited finances and an unwillingness to spend much on them. I have had variable results. One of the worst was a luxury Mazda. The best was a high mileage Corona that never cost me anything for maintenance (no surprises there). Surprisingly, the Diamante I have had for years is also low maintenance. With old cars it is just potluck, but with old ones the financial risk is not great. I find it a worthwhile trade-off.

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afe66

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#2662597 25-Feb-2021 11:20

Fred99:

afe66: I wonder if people would be do keen on buying cars if we had the leasing system for new cars they have in uk.

It seems actually buying cars is now much rarer than here and people upgrade their cars every 3 years to a newer leased model with more safety and features.

Salting the roads in some areas and the "MOT test" kicking in after 3 years might be a significant factor in this.

Possibly.

Both my current 2014 leaf and ford focus 2006 are ex uk. When I lived in the uk I didnt find their MOT testing any more onerous that nz. In fact I wish we had the particulate testing bit to get rid of the crap smoky nz diesels I see everyday driving up a nearby hill.

We dont have the leasing options because we are a small market with lesser room for economy of scale. Not going to get one company leasing 1000 cars..also I think our tax system isnt quite as advantageous to leasing as UK.

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#2662614 25-Feb-2021 11:48

Rikkitic:

My cars have all been cheap and old due to limited finances and an unwillingness to spend much on them. I have had variable results. One of the worst was a luxury Mazda. The best was a high mileage Corona that never cost me anything for maintenance (no surprises there). Surprisingly, the Diamante I have had for years is also low maintenance. With old cars it is just potluck, but with old ones the financial risk is not great. I find it a worthwhile trade-off.

I had a Mitsubishi Diamante as a company car. While is was reasonably peppy and comfortable the rubbers around the doors kept falling off. This started in its first few months and continued on a regular occurrence until it was swapped for a Falcon.

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#2662725 25-Feb-2021 17:16

MikeB4:

I had a Mitsubishi Diamante as a company car. While is was reasonably peppy and comfortable the rubbers around the doors kept falling off. This started in its first few months and continued on a regular occurrence until it was swapped for a Falcon.

I expect issues with Diamantes. Mine must just be a rare reverse lemon.

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jonb

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#2665916 28-Feb-2021 20:33

Thanks for the feedback, it seems like if choose wisely the TOC is about the same with a newer car, after the initial cost, with all the benefits of a modern car and being able to explore NZ more. As well getting up to ski field on a powder day, would be great to start 4x4 on easier tracks like e.g. Mt Bathans track and get to out of the way huts for tramping start points.
The Mercury scheme is hard sell for someone from a cheap car background, for like 10k a year would be well more than current car cost.

shk292

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#2665932 28-Feb-2021 21:23

jonb: Thanks for the feedback, it seems like if choose wisely the TOC is about the same with a newer car, after the initial cost, with all the benefits of a modern car and being able to explore NZ more. As well getting up to ski field on a powder day, would be great to start 4x4 on easier tracks like e.g. Mt Bathans track and get to out of the way huts for tramping start points.
The Mercury scheme is hard sell for someone from a cheap car background, for like 10k a year would be well more than current car cost.

Agreed re Mercury - it looked interesting just because my current car is so blimming expensive, but actually it would make more sense to swap it for something less so (the current plan)

I also had ads from a Sixt lease scheme which makes Mercury look really cheap - think $2.5k per month for a new and expensive car. Too rich for my blood

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#2665943 28-Feb-2021 22:11

jonb: Thanks for the feedback, it seems like if choose wisely the TOC is about the same with a newer car, after the initial cost, with all the benefits of a modern car and being able to explore NZ more. As well getting up to ski field on a powder day, would be great to start 4x4 on easier tracks like e.g. Mt Bathans track and get to out of the way huts for tramping start points.
The Mercury scheme is hard sell for someone from a cheap car background, for like 10k a year would be well more than current car cost.

Even if running a 4x4 does cost more (on TCO basis), if it is something you want and can afford it will be worth it for you. Consider it a recreational expense rather than a transport one.

If you are going to do more than very basic offroading, you will also need to budget for:

Recovery points (frount & rear unless there is a tow hitch receiver)
A/T or M/T tires
Basic Recovery gear: Snatch strap (or better a kinetic snatch rope), Heavy Bow shackes, tow strap, tire deflator, recovery tracks, shovel
Compressor if you will be airing down a lot, and want to pump the tires up before hitting sealed roads, rather than waiting until the next gas station.
A CB if you will be doing club stuff (a good idea if it is your first off road experience)

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