Best lease car deals available?
Discussion
RYH64E said:
Does anyone know why the 35 and 47 month deals tend to have higher monthly rates compared to 23 month deals? It seems counter intuitive, surely depreciation is higher in the first two years so the costs must be higher?
1) The cars depreciate more in the third and fourth years, as they have gone/are going out of warranty?2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
webwysard said:
I have £300/month including deposit to play with (2year lease), but can't see any decent lease deals on cars like M135i or Golf R.
Not too bothered about mega mileage as it will be weekend car but has to petrol.
If it's weekend car then buy a modern classic.Not too bothered about mega mileage as it will be weekend car but has to petrol.
Doesn't need to be reliable plus low mileage keeps price up
talksthetorque said:
1) The cars depreciate more in the third and fourth years, as they have gone/are going out of warranty?
2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
The only one of your points that makes sense is 4, IMO.2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
RYH64E said:
talksthetorque said:
1) The cars depreciate more in the third and fourth years, as they have gone/are going out of warranty?
2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
The only one of your points that makes sense is 4, IMO.2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
Whilst I'm in question mode I'll ask another, why have lease deals got so cheap?
Back in 2009 I paid £650 per month for a £35k Mercedes, I've just taken on a £46k Mercedes for about half of that. I know that interest rates have fallen but depreciation hasn't, and the monthly payments on my current car (£287+vat per month 6+23) are not likely to add up to half of the depreciation costs over 2 years let alone interest and profit for the lease company.
Back in 2009 I paid £650 per month for a £35k Mercedes, I've just taken on a £46k Mercedes for about half of that. I know that interest rates have fallen but depreciation hasn't, and the monthly payments on my current car (£287+vat per month 6+23) are not likely to add up to half of the depreciation costs over 2 years let alone interest and profit for the lease company.
RYH64E said:
Whilst I'm in question mode I'll ask another, why have lease deals got so cheap?
Back in 2009 I paid £650 per month for a £35k Mercedes, I've just taken on a £46k Mercedes for about half of that. I know that interest rates have fallen but depreciation hasn't, and the monthly payments on my current car (£287+vat per month 6+23) are not likely to add up to half of the depreciation costs over 2 years let alone interest and profit for the lease company.
Interest rates, mostly. And lease companies have got bigger and better at spreading risk over their portfolio. 'Premium' manufacturers now also pad the RRP a lot more. Nobody pays £46k for your Merc. Back in 2009 I paid £650 per month for a £35k Mercedes, I've just taken on a £46k Mercedes for about half of that. I know that interest rates have fallen but depreciation hasn't, and the monthly payments on my current car (£287+vat per month 6+23) are not likely to add up to half of the depreciation costs over 2 years let alone interest and profit for the lease company.
RYH64E said:
talksthetorque said:
1) The cars depreciate more in the third and fourth years, as they have gone/are going out of warranty?
2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
The only one of your points that makes sense is 4, IMO.2) The further away the depreciation occurs from the time of calculation, the harder to predict accurately, so there's a bit of arse covering going on?
3) Gazillions of companies have their fleet cars for three years so there's a saturation in the used market of 3 year old cars?
4) The manufacturers want two year old cars in their approved used schemes to resell again, so put more in the deals from their end?
All IMHO of course
webwysard said:
Had couple of quotations for M135i as a personal lease and unable to understand why am I being asked to be either company director or in receipt of company car or fuel allowance to qualify. Now that is F***ing confusing.
i don't understand what the car/fuel allowance is to do with the lease co, it doesn't tell them anything about you surely? If you're being asked if you're a company director in order to qualify i'd be tempted to walk as they sound like they're bending the rules and trying to get you through on business lease. Again!Is it with Arval? Some of the leasing companies want to see proof of business miles/car allowance/goateed directorship for a personal lease, don't ask me why because even they couldn't answer that question when I asked them. It doesn't mean the broker is trying to do something underhand to fudge you through a business lease
My understanding on the reason for the 'company director' type stipulations is a by-product of how the manufacturers want to segregate the car buying market.
I was told by an employee of car finance company that, if a manufacturer wants to promote a particular model, they often prefer to do this via business only leases.
Basically, they can 'hide' a discount on the price in the form a subsidised lease rate. By restricting to business only, they are trying to limit the effect on the private new car buying market, and as a result limit the impact on the residuals on existing cars, which would make the manufacturer unpopular.
The private leasing companies of course have no such concern about the car company's neat market segmentation. Hence they look for loopholes which will satisfy the leasing rules, but at the same time allows the offer to be made available to as large a number of people as possible.
Hence why you end up with strange stipulations from leasing companies, which don't appear to make any sense.
I was told by an employee of car finance company that, if a manufacturer wants to promote a particular model, they often prefer to do this via business only leases.
Basically, they can 'hide' a discount on the price in the form a subsidised lease rate. By restricting to business only, they are trying to limit the effect on the private new car buying market, and as a result limit the impact on the residuals on existing cars, which would make the manufacturer unpopular.
The private leasing companies of course have no such concern about the car company's neat market segmentation. Hence they look for loopholes which will satisfy the leasing rules, but at the same time allows the offer to be made available to as large a number of people as possible.
Hence why you end up with strange stipulations from leasing companies, which don't appear to make any sense.
Fast Bug said:
Is it with Arval? Some of the leasing companies want to see proof of business miles/car allowance/goateed directorship for a personal lease, don't ask me why because even they couldn't answer that question when I asked them. It doesn't mean the broker is trying to do something underhand to fudge you through a business lease
No its with applied leasing but that's the second time I've been asked for this. Does it mean that I can't qualify for a personal lease or shall I keep trying with other lease companies ??
Would really like to know this from the members who have leased cars.
Applied Leasing will be the broker and not the funder, you'll probably find that they're all going through the same funder hence why you're being asked the same question. I know that some of the funders will accept copies of work contracts if they state that you get X amount back per mile for any business miles that you may do in your own car, so worth checking that.
If they won't accept that, you're probably going to hit a brick wall with getting one approved unless you do something moody. It's nothing to do with hiding discounts or anything like that, it's just part of their underwriting criteria. Some companies want it, some don't care as long as you're credit worthy.
If they won't accept that, you're probably going to hit a brick wall with getting one approved unless you do something moody. It's nothing to do with hiding discounts or anything like that, it's just part of their underwriting criteria. Some companies want it, some don't care as long as you're credit worthy.
Blown2CV said:
is the implication that if you aren't a director and you don't get a car allowance or do business miles, you don't qualify for the personal lease? Or are these just extra info they may find useful for marketing etc...
Yes, to qualify you need to be either company director or in receipt of fuel allowance.If your employer has a policy that if you happen to drive your personal car for work purposes (e.g. to visit another site) that you can claim mileage allowance for that then that can be enough, even if it never actually happens. It was for me 
Talk to the lease company and find out exactly what they require, then go from there. If you don't meet the criteria you don't meet it, there will always be another deal.
Talk to the lease company and find out exactly what they require, then go from there. If you don't meet the criteria you don't meet it, there will always be another deal.
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