Best lease car deals available?

[msport123]

anonymous said:

[redacted]

I'm not sure I will I'll be in such a minority. AUC 335d's at 2 years old are advertised at 27/28k even with a good haggle, you wouldn't walk away without spending much less then 25k at best. There's still a 3k difference between the two.

A private sale 335d at £22k compared with an advertised AUC car at £27k+ would get my interest for sure.

Anyway, I don't want to derail the thread, the only point I'm trying to make is not to discount the idea of buying outright if you have the resources to do so and the skills to negotiate a good deal.

Truth of the matter is I think the minority is the cash buyer who's in the position to buy new.

Edited by msport123 on Monday 10th August 22:39

[Al U]

Pickled Piper said:

I wait with baited breath.

Slightly dramatic.

[mattman]

There's the old saying, if it appreciates, buy it
If it depreciates rent it...

I've just taken out my first lease as its over £150/mth cheaper than financing the same car. I don't have a huge chunk of cash sitting in the bank to buy outright and even if i did,I'm not sure it's the best use to spend on some that depreciates so heavily

[Sheepshanks]

msport123 said:

With the added flexibility of owning the car come the end of the two year period and higher mileage allowance, I think I would rather buy outright compared to the lease deal above.

With all these ''perceived' crazy low lease deals about, I think it's easy to forget the option of an outright purchase. If the lease deal is low, there will be a good chance you can buy the same car very keenly.

You have to weigh the deal but the residual value is a big unknown - outside of PH, how much demand is there for used 335d's? I have no idea, maybe it's huge - but I'd be surprised. A neighbour just got one for his wife through a work car scheme and reckons the 335d was cheaper than the 320d.


On other cars, I'm looking at a £30K Tiguan. I can lease it for 3yrs for £10.5K. PCP, even with £2750 VW support, will cost me £17.5K over 3yrs. GFV is about £12,500.

I think I'm pretty unlikely to be able to get the extra £7K back either in p/x or by buying the car and reselling it.

[foreverfalling]

That CVUK offer for the 335d- I can't see it on their site.
It's exactly what I'm after though.

Can someone forward me the email? I'm on their list but I didn't get this one.

Thanks.

[nickfrog]

mattman said:

There's the old saying, if it appreciates, buy it
If it depreciates rent it...

I've just taken out my first lease as its over £150/mth cheaper than financing the same car. I don't have a huge chunk of cash sitting in the bank to buy outright and even if i did,I'm not sure it's the best use to spend on some that depreciates so heavily

Only slight issue is that a car depreciates exactly at the same rate irrespective of payment method.

If you think the overall lease cost is lower than buying cash, then great, go for it, I would. But not always the case when comparing like for like, ie the best lease deals and the highest cash discount (usually through a broker). Actually, it's quite rare in my experience.

M135i is a case in point - £200/month typical depreciation so far over the first 3 years (if bought properly). There were lease deals at £300 for a little while but even then, keeping your cash at 2% pre-inflation on an ISA vs saving 33% by paying cash ? Tough one that !

Edited by nickfrog on Tuesday 11th August 01:25

[msport123]

Sheepshanks said:

You have to weigh the deal but the residual value is a big unknown - outside of PH, how much demand is there for used 335d's? I have no idea, maybe it's huge - but I'd be surprised. A neighbour just got one for his wife through a work car scheme and reckons the 335d was cheaper than the 320d.


On other cars, I'm looking at a £30K Tiguan. I can lease it for 3yrs for £10.5K. PCP, even with £2750 VW support, will cost me £17.5K over 3yrs. GFV is about £12,500.

I think I'm pretty unlikely to be able to get the extra £7K back either in p/x or by buying the car and reselling it.

Which model of Tiguan would that be?

Your example is a little out of proportion, your comparing the list price of the Tig (which you shouldn't be paying in the first place) with the total financed cost (original post was all about 'if you had the cash at your disposal') and then also throwing the GFV in there which is surely low balled as a dealer buy back.

For reference the cheapest Tig would cost you 19k and the most expensive super duper model no more than 27k.

[msport123]

nickfrog said:

M135i is a case in point - £200/month typical depreciation so far over the first 3 years (if bought properly). There were lease deals at £300 for a little while but even then, keeping your cash at 2% pre-inflation on an ISA vs saving 33% by paying cash ? Tough one that !

Edited by nickfrog on Tuesday 11th August 01:25

That is a tough one!

[msport123]

nickfrog said:

M135i is a case in point - £200/month typical depreciation so far over the first 3 years (if bought properly). There were lease deals at £300 for a little while but even then, keeping your cash at 2% pre-inflation on an ISA vs saving 33% by paying cash ? Tough one that !

Edited by nickfrog on Tuesday 11th August 01:25

That is a tough one!

[theboss]

msport123 said:

nickfrog said:

M135i is a case in point - £200/month typical depreciation so far over the first 3 years (if bought properly). There were lease deals at £300 for a little while but even then, keeping your cash at 2% pre-inflation on an ISA vs saving 33% by paying cash ? Tough one that !

Edited by nickfrog on Tuesday 11th August 01:25

That is a tough one!

Where's that £200/month depreciation figure come from? Can we see some examples? £7.2k cost over 3 years sounds wildly optimistic to me.

[silverous]

theboss said:

Where's that £200/month depreciation figure come from? Can we see some examples? £7.2k cost over 3 years sounds wildly optimistic to me.

Agreed, I can't think of many BMWs where you get to walk away after three years at £7.2k. Most cars seem to depreciate by 50% after 3 years at best and there's no way you are buying a 135i at £15.5k.
Take a look at any car on what car's depreciation calculator and you'll see it fall by approx 50% after 3 years.

Broadspeed has a discounted base m135i at circa 28k. Let's be kind and assume the 50% depreciation is down from the list price of £33k. So it will be worth £16,500 after 3 years on that basis. If you bought at 28k (discounted) then you will have lost £11,500 which is about £319 a month. With lease/pcp there will be a deposit up front so you'll be down some of that perhaps if my maths is right....

[silverous]

mattman said:

There's the old saying, if it appreciates, buy it
If it depreciates rent it...

I've just taken out my first lease as its over £150/mth cheaper than financing the same car. I don't have a huge chunk of cash sitting in the bank to buy outright and even if i did,I'm not sure it's the best use to spend on some that depreciates so heavily

I think that old adage probably applies best if you think you can do better with the money in your hand than buying something with it (after factoring in the cost of renting i.e. the cost of borrowing the money/asset). If you take out a car loan that costs 6% but you only get 4% interest on your savings you are clearly better off spending your savings on the car than paying 2% extra for the car loan.

The depreciation hits you whether you buy it or someone else buys it and you cover their depreciation plus their cost of lending the money to you. The only way I think lease or pcp makes sense is if you can see it being cheaper or roughly the same over the period than buying e.g. some of the great least deals on here. I think that adage was probably first put out (often attributed to warren buffet I believe) by businesses that had plans to make more money with the cash than the cost of renting the asset.

[MrOnTheRopes]

Fast Bug said:

No fees as Jon said.

I'm not sure if it's a business or personal quote, but on a 3+35 10k pa

SE £251.94 business - £288.71 personal
AMG (Night) £295.48 business - £325 personal

All plus VAT

Hi, how can someone get in touch? Got a mate who may be interested. Cheers.

[WestyCarl]

Pickled Piper said:

WestyCarl said:

arun1uk said:

Anyone seen an good Jag XE deals? Expecting some competitive pricing to get them on the road to challenge the BMW/Merc/Audi brigade.

No chance due to high demand at the moment, they are currently more expensive than the BMW 3 and A4. I expect when the new BMW + Audi are out next year the pricing will reduce.

This is where Jag have got it badly wrong in the past. If they are serious about taking business from the big three Germans then they will have to match the lease costs pound for pound.

I wait with baited breath.

Business lease rates are available (Leaseplan), they are more expensive than the equivalent 3/ A4 at the moment.

[Fast Bug]

Emeye said:

Does anyone know if the merc business only deals are available to people claiming business miles from work the way some other finance companies accept?

With MBFS that would be personal as the finance agreement isn't in a company name or sole trader trading as etc

MrOnTheRopes said:

Hi, how can someone get in touch? Got a mate who may be interested. Cheers.

Just drop me an email via PH.

I do fleet sales and end user only, but can quote and get someone here in the office to look after personal deals

[Sheepshanks]

msport123 said:

Sheepshanks said:

On other cars, I'm looking at a £30K Tiguan. I can lease it for 3yrs for £10.5K. PCP, even with £2750 VW support, will cost me £17.5K over 3yrs. GFV is about £12,500.

I think I'm pretty unlikely to be able to get the extra £7K back either in p/x or by buying the car and reselling it.

Which model of Tiguan would that be?

Your example is a little out of proportion, your comparing the list price of the Tig (which you shouldn't be paying in the first place) with the total financed cost (original post was all about 'if you had the cash at your disposal') and then also throwing the GFV in there which is surely low balled as a dealer buy back.

For reference the cheapest Tig would cost you 19k and the most expensive super duper model no more than 27k.

It's a Match 150PS DSG with metallic and cruise as only options - list OTR is £29,585. I mentioned that as a reference point - the lease and PCP figures both have discounts / support in them.

If you had the cash you could take VW's £2750 contribution to the PCP and then settle immediately so that would give a total discount in the region of £5K. So how does £25K play against £10.5K - would 3yr Tig be worth (in p/x or private sale) £14.5K? My reading is the dealer GFVs aren't far out, however much you want the car to be worth more.

[sidekickdmr]

Im seriously eyeing up a Skoda Octavia VRS estate at the moment, best deal I've found is with Freedom on a 6+23 at £209 inclusive of VAT.

However it seems there isn't any stock and its factory order only, I've tried calling a couple of dealers with new VRS's in stock but they don't even seem to know what a lease is, and keep trying to sell me PCP.

Anyone got any ideas/contacts?

Ideally id find a dealership with a stock car that can match the deal.

[loudlashadjuster]

sidekickdmr said:

Im seriously eyeing up a Skoda Octavia VRS estate at the moment, best deal I've found is with Freedom on a 6+23 at £209 inclusive of VAT.

However it seems there isn't any stock and its factory order only, I've tried calling a couple of dealers with new VRS's in stock but they don't even seem to know what a lease is, and keep trying to sell me PCP.

Anyone got any ideas/contacts?

Ideally id find a dealership with a stock car that can match the deal.

Hughes Skoda were good at hunting down a stock or near-shore car for me.

All dealers have access to the same stock and build lists so in theory should be able to give you the same info, if they can be bothered (they don't make as much from a lease).

[arun1uk]

WestyCarl said:

Business lease rates are available (Leaseplan), they are more expensive than the equivalent 3/ A4 at the moment.

To give an update - I drove an R-Sport 180 Diesel over the weekend.

First thoughts, looks good - a bit inconspicuous from the back.
Lovely interior, good use of leather, supportive seats however costs extra to get elec/lumbar support.
Dash covering is faux leather, gearbox surround (especially for the auto) and some switchgear feels a bit cheap. Buttons kind of feel like an old Goodman's hifi...not nice to touch. Reasonable in the back but slightly reduced headroom.

Great standard kit, inc sat nav, leather, heated seats, cruise, bluetooth (inc streaming), HIDs, rear parking sensors, keyless go.

Visibility is not great but it's quite a nice place to be, you sit quite low - but that's because they've raised the central console - feels nice though with good driving position with lots of adjustment.

I drove the 8 speed auto - which was extremely smooth and changed ratios seamlessly if a little relaxed - manual shifts were very quick. It's quite an expensive option (>£2k) but increases CO2. The engine does sound a little gruff as low speeds (and defo noticeable as a diesel) - probably due to reduced sound deadening and a little noisy when driving compared to a 320d or C220.

Boot is smaller than rivals, quite deep but not as wide - still usable though.

Overall, impressive - Seriously strong contender. Think I'll get one if decent deal appear - i.e. http://www.lookers.co.uk/jaguar/new-offers/jaguar-...

[nickfrog]

silverous said:

theboss said:

Where's that £200/month depreciation figure come from? Can we see some examples? £7.2k cost over 3 years sounds wildly optimistic to me.

Agreed, I can't think of many BMWs where you get to walk away after three years at £7.2k. Most cars seem to depreciate by 50% after 3 years at best and there's no way you are buying a 135i at £15.5k.
Take a look at any car on what car's depreciation calculator and you'll see it fall by approx 50% after 3 years.

Broadspeed has a discounted base m135i at circa 28k. Let's be kind and assume the 50% depreciation is down from the list price of £33k. So it will be worth £16,500 after 3 years on that basis. If you bought at 28k (discounted) then you will have lost £11,500 which is about £319 a month. With lease/pcp there will be a deposit up front so you'll be down some of that perhaps if my maths is right....

M135i has not followed the normal route for depreciation for a number of reasons. Discounts for cash have been 20%/21% but only a few have benefited as most people go the lease/pcp route so very little impact on residual as dealers have done a good job yield managing the cars returning from 24 month deals and very few cars are outside the network. Early cars change hands quickly at around £20k at the moment, actually down less than £7k from £25k new when bought cash then. How long will this continue, I don't know but with the LCI, well worth a punt compared to £350 lease, even with the (modest) opportunity cost.