Golf R Values

[davyvee]

Why do people think BMW/VW offered the M135I/Golf R on such attractive deals to start with anyway?

I assume to get volume of sales?

Someone must be profiting somewhere.

[RS Grant]

Lucas Ayde said:

Pennyroyal Tea said:

I find it odd that someone could feel different about their car simply by how it's paid for

If you were to buy a car outright, you're more than likely paying for its depreciation in the first two/three years anyway, and hence you've still paid the same as you would have to lease it; only with this option you're still liable for a depreciating asset after such period.

Apart from which, most people don't hold onto their car for more than two/three years anyway, regardless of how it's funded, so I'm at a loss as to why you'd brandish your car thus, simply because you know you're handing it back from day one.

I've leased cars, bought cars and PCP'd cars. Why would you treat them any differently?

Seems obvious to me- if you buy a car outright it's clearly your property and you don't really know when you will be selling it on. If you are leasing or buying on PCP with the intention of giving it back come balloon payment time, then you are essentially just renting it as you know at date x/y/z you will be handing it back. People generally tend to treat their own possessions better than rented stuff and so if you buy an ex-lease/PCP, you have an increased chance that someone mistreated the car mechanically.

As for 'most people' not holding onto their car for more than two or three years, I don't believe that's yet the case and the trend for more people changing every 2/3 years has come from the increasing use of PCH/PCP which works by incentivising you to keep changing.

People don't seem to understand that they pay for depreciation one way or the other and continual PCH/PCP deals just leave you permanently funding max levels of depreciation without ever really owning the car outright.

I wouldn't rule out a lease if I knew at the outset that I would only want the car for 2 years but so far that's never been the case for me and I prefer to buy and hold until such time as I feel the need to change - which so far has been between 5 to 8 years on previous motors (both new and secondhand purchases). My intention is to keep my current car (which I bought new) until it's at least 5 years old.

Totally agree, for someone like yourself then leasing definitely doesn't sound like it would fit your needs/requirements... I have a habit of changing my car at regular intervals, so a two year lease is actually quite a long period for me to hang onto a car, so it fits my needs almost perfectly.

There are two main reasons why I keep my car clean and treat it with basic mechanical sympathy even though it's 'rented' rather than something which I have bought.

Firstly, as I said above, I enjoy driving/looking at a clean and tidy car rather than a neglected car which has mud/swirls/dog hair covering it. But that goes for anything I drive, even my Transit Connect van is also usually pretty clean and tidy.

Secondly because when it comes to handing it back to VW, I'd rather not risk being hit with penalty charges for something which they deem outside 'acceptable wear and tear' levels. I'd rather be confident that they won't be able to pick up/charge me for rectifying dents/marks/scuffs which a less cared for car is more likely to have accumulated over the 2 year lease.

Is that being overly cautious?? Perhaps, but being my first lease.. I'd rather err on the side of caution than be hit with a bill which would take the shine off my ownership experience and also bump up the overall cost of my lease.


Cheers,
Grant

[Lucas Ayde]

davyvee said:

Why do people think BMW/VW offered the M135I/Golf R on such attractive deals to start with anyway?

I assume to get volume of sales?

Someone must be profiting somewhere.

In the case of the Golf R I suspect that the early lease deals were offered based on predicted high residuals for the first couple of years. It was a new model (no existing pool of secondhand stock available), very well reviewed and a long waiting time to take delivery. Hence, very good residuals meaning you could offer a keen finance deal which of course helps you shift volume too.

Now that the car has been out for a few years, the waiting time is much shorter, and lots of ex-lease cars are coming on the market, residuals on a new one aren't nearly as good hence the deals aren't as good. OTOH, you can get a very good discount if you are buying new.

[davyvee]

Lucas Ayde said:

OTOH, you can get a very good discount if you are buying new.

Yes. About 20%.

Almost as much as two years leasing. Thanks VW scandal

[aspirated]

Interesting thread, given that 5 door DSG 50k mile R's can be had for circa £16k now within the trade

[TJC46]

MrDan said:

Just a complete random post

I have 2 months and 2000 of 20,000 miles left on my lease.

The car is 2014, 3 Door Lapiz with DSG, DRC, Winter Park and Camera

I have spent £9400 to date and the lease company just offered to sell me the car now for £22k

So that`s a total cost of 31k which is the original OTR cost before options...

I was thinking of buying a Golf R end of Jan early Feb and was following,[mainly on line] British Car

Auctions.

Called in at the Bellvue site of B.C.A just in time to see a 5 door, bright red, D.S.G. 64 Plate and 8000

miles sell for hammer price of £18,900.

Now im not a trader so auction costs of approx another 1k on top would have had me owning the car.

There has been an absolute glut of these cars going through the auctions since January and the prices have

reflected this.

Did I buy one?........No I followed the lease thread on here and jumped at the Scirocco R 280.

At the prices being offered to lease, it was stupid not too.

Edit to add car was in immaculate condition.

Edited by TJC46 on Thursday 9th March 12:26