Best lease car deals available?
Discussion
Sheepshanks said:
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.
What's the mileage allowance on your 3yr lease?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.
A quick scout around shows a 3 year old Tig at trade value (webuyanycar) comes in at £15,200 with 25k mileage, lets say £15k. That same car is being retailed at just under £18k. I think you'll agree that a private sale would yield more than 15k, but we will work with that figure as an absolute worse case.
So as you say, GFV and trade in value not a million miles away. To buy your model with options shouldn't cost anymore than £25k as you say, so there's a 10k cost in running this car for the 3 years. Your lease is costing £10.5k over the same period with what I assume will be a lower mileage allowance maybe? and obvious inflexibility at the end of the lease. There's nothing in it - if I had the cash lying around and it wasn't earmarked for any other purchase or entrepreneurial activity, then I would still buy cash in this instance.
nickfrog said:
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.
So you are saying I can have a 135i for 5k for 3 years if I buy in cash ? I can't believe it, do you have one that you bought for 25k? That seems more than 20% off list. Have you got experience of a dealer giving 20k to buy one back (as opposed to offering 20k p/x which is always going to be tainted because of the potential for them to massage the figures on the car you are buying) ? silverous said:
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.
Well said. We've all heard the saying, but in reality what does it mean for most of us in a real life situation. It's all good saying that you're going to put the money to better use by investing it, but you need to be sure what your investing into and accept that you will be risking your capital too. 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.
that is hilariously cheap for running a spanking new bmw. Its no wonder there are doezens of these 320d knocking around
J99kke said:
My apologies btcc123...Updated inc Admin fee
For anyone wanting a breakdown (inc VAT):
Doc Fee: £180
Deposit: £2400
Monthly Payments 23x£140.99 = £3242.77
Total amount paid over 24months = £5822.77
£5822.77/24months = An all in all spend of £242.61 per month
For anyone wanting a breakdown (inc VAT):
Doc Fee: £180
Deposit: £2400
Monthly Payments 23x£140.99 = £3242.77
Total amount paid over 24months = £5822.77
£5822.77/24months = An all in all spend of £242.61 per month
silverous said:
nickfrog said:
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.
So you are saying I can have a 135i for 5k for 3 years if I buy in cash ? I can't believe it, do you have one that you bought for 25k? That seems more than 20% off list. Have you got experience of a dealer giving 20k to buy one back (as opposed to offering 20k p/x which is always going to be tainted because of the potential for them to massage the figures on the car you are buying) ? They're good cars, but they're not that good. They will continue to drift down just like anything else, especially once they hit 3 yrs old and the dealers aren't interested in controlling prices.
James_P said:
Just about to finalise my first lease car for my wife, a discovery sport, e capability,hse spec, on 9+23 @ £289/month Inc VAT. There is a £299 fee on top of this, what are thoughts on this, works out at £422/month over 2 yrs
Cheers
James
James seems like a good deal - where is this from please? Thanks BCheers
James
Vladikar said:
On a business lease our limit is £200p/m
Current dilemma:
Golf GTD with Winter pack vs Tiguan Match 150 vs BMW 318i
Ideally I'd like a 320d on a 3+23, 2 years 10k miles but can't get it for close to £200 at that figure.
Any suggestions?
That's a pretty low rate. Skoda Octavia 2.0 TDi VRS from freedom comes in at £195.99 on that basis. Current dilemma:
Golf GTD with Winter pack vs Tiguan Match 150 vs BMW 318i
Ideally I'd like a 320d on a 3+23, 2 years 10k miles but can't get it for close to £200 at that figure.
Any suggestions?
http://www.freedomcontracts.com/Skoda-Octavia-2.0-...
msport123 said:
A quick scout around shows a 3 year old Tig at trade value (webuyanycar) comes in at £15,200 with 25k mileage, lets say £15k.
I saw that £15K value too (for a DSG) but I also looked at same age / mileage 2WD manual and that was £10K so I don't trust the higher figure - that's too big a difference.Lease seems easier as I certainly don't want to run one of these outside warranty. Obviously I could just hand it back at the end of the PCP too, but then that route would be more expensive.
Sheepshanks said:
I saw that £15K value too (for a DSG) but I also looked at same age / mileage 2WD manual and that was £10K so I don't trust the higher figure - that's too big a difference.
Lease seems easier as I certainly don't want to run one of these outside warranty. Obviously I could just hand it back at the end of the PCP too, but then that route would be more expensive.
Plus all of the PCP deals that i've been offered or taken out have been engineered to give you a chunk of "equity" (i hate that term when applied to cars!!) so that they can get you on a conveyor belt of repeat business.Lease seems easier as I certainly don't want to run one of these outside warranty. Obviously I could just hand it back at the end of the PCP too, but then that route would be more expensive.
Walking away from the deal would mean ditching that, unless the GFV was set higher to get your business and/or the market has dropped unexpectedly.
Vladikar said:
On a business lease our limit is £200p/m
Current dilemma:
Golf GTD with Winter pack vs Tiguan Match 150 vs BMW 318i
Ideally I'd like a 320d on a 3+23, 2 years 10k miles but can't get it for close to £200 at that figure.
Any suggestions?
Surely the Golf is a no brainier on that basis? Current dilemma:
Golf GTD with Winter pack vs Tiguan Match 150 vs BMW 318i
Ideally I'd like a 320d on a 3+23, 2 years 10k miles but can't get it for close to £200 at that figure.
Any suggestions?
msport123 said:
Sheepshanks said:
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.
What's the mileage allowance on your 3yr lease?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.
A quick scout around shows a 3 year old Tig at trade value (webuyanycar) comes in at £15,200 with 25k mileage, lets say £15k. That same car is being retailed at just under £18k. I think you'll agree that a private sale would yield more than 15k, but we will work with that figure as an absolute worse case.
So as you say, GFV and trade in value not a million miles away. To buy your model with options shouldn't cost anymore than £25k as you say, so there's a 10k cost in running this car for the 3 years. Your lease is costing £10.5k over the same period with what I assume will be a lower mileage allowance maybe? and obvious inflexibility at the end of the lease. There's nothing in it - if I had the cash lying around and it wasn't earmarked for any other purchase or entrepreneurial activity, then I would still buy cash in this instance.
I can imagine that Merc will be doing some big lease deals on the new C class some time soon.
I also can see the new 2 series bmw grand tourer thing being shifted this way as well.
the c63 deals of a few years ago are bound to return ? Just wait until merc turns the tap on ? As it is I read about the laughable lease deals on the e63s - cheap as chips as no one would dare buy them outright with a massive depreciation curve.
I also can see the new 2 series bmw grand tourer thing being shifted this way as well.
the c63 deals of a few years ago are bound to return ? Just wait until merc turns the tap on ? As it is I read about the laughable lease deals on the e63s - cheap as chips as no one would dare buy them outright with a massive depreciation curve.
speaking of which I see Merc uk themselves are doing
Sl400
obviously desperate to sell them
PCP
0% finance
£750 * 36
7499 deposit
£34499 to 3 years cost
after 3 yrs you can buy for £32k... is it worth that (£73k start price)
OR
£30700 to lease it on business for 3 yrs.
but then again on a lease you are tied in pretty much so perhaps the extra costs on the pcp are safer for an early exit strategy!
I have to say £30k to rent a car like that does not make good sense to me...
Sl400
obviously desperate to sell them
PCP
0% finance
£750 * 36
7499 deposit
£34499 to 3 years cost
after 3 yrs you can buy for £32k... is it worth that (£73k start price)
OR
£30700 to lease it on business for 3 yrs.
but then again on a lease you are tied in pretty much so perhaps the extra costs on the pcp are safer for an early exit strategy!
I have to say £30k to rent a car like that does not make good sense to me...
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