Discussion
You will need to inform your insurance company that you are not the registered Keeper for starts. Other than that you are obliged to ensure the car is serviced in accordance with the manufacturer that you can do by either selecting an M-Power service package for 5yrs/60,000 miles for £1000 or pay it as you go. you can also select a maintenance contract that covers servicing and tyres also.
At the end of the contract the car must be handed back and the lease company are within their rights to charge for any rectification that is not deemed "wear and tear" and ofcourse there is a mileage penalty for exceeding the stipulated agreen mileage.
However there is no better and cost effective way to run a New M3 for a fixed period, the deals are just crazy just now for personal contract hire which over a 30 month or 36 month contract wouldn't come close to even covering the depreciation on the car.
Greg
At the end of the contract the car must be handed back and the lease company are within their rights to charge for any rectification that is not deemed "wear and tear" and ofcourse there is a mileage penalty for exceeding the stipulated agreen mileage.
However there is no better and cost effective way to run a New M3 for a fixed period, the deals are just crazy just now for personal contract hire which over a 30 month or 36 month contract wouldn't come close to even covering the depreciation on the car.
Greg
Wow they are trying to shift them aren't they? I have just finsihed my lease and paid off the final balloon which was stupidly cheap considering what current dealer cars are going for. All in all I paid about 1k more than list price going the lease route over three years. Was well worth it and now I need to start down the modifing route 
These are contract hires, not purchases, so APR is not relevant.
Basically, you pay 3 or 6 payments up front, followed by monthly payments.
Road tax is usually included.
At the end, you hand the car back.
But don't be fooled into thinking you're driving these cars for less than the depreciation if you were to buy one...they're well over-priced in the first place!!!
You will pay out a significant sum of money and have nothing to show for it later down the line.
Methinks a wise man would buy a used one!!
Basically, you pay 3 or 6 payments up front, followed by monthly payments.
Road tax is usually included.
At the end, you hand the car back.
But don't be fooled into thinking you're driving these cars for less than the depreciation if you were to buy one...they're well over-priced in the first place!!!
You will pay out a significant sum of money and have nothing to show for it later down the line.
Methinks a wise man would buy a used one!!
Or not.
Lets say it will cost me £17,000 for two and a half years.
This will cover me:
RFL, Services, and warranty for the period. Maybe 1x brakes & 1x tyres.
Buying a used one:
2.5 years of RFL to pay for, Warranty, services, who knows its's history and deprecation. Plus tyres may not be in new condition and brakes.
If you looked at both for a 2.5 year period, you start to realise how cheap that lease deal is, and it's a new car.
Go figure!
Lets say it will cost me £17,000 for two and a half years.
This will cover me:
RFL, Services, and warranty for the period. Maybe 1x brakes & 1x tyres.
Buying a used one:
2.5 years of RFL to pay for, Warranty, services, who knows its's history and deprecation. Plus tyres may not be in new condition and brakes.
If you looked at both for a 2.5 year period, you start to realise how cheap that lease deal is, and it's a new car.
Go figure!
rjm8282 said:
Or not.
Lets say it will cost me £17,000 for two and a half years.
This will cover me:
RFL, Services, and warranty for the period. Maybe 1x brakes & 1x tyres.
Buying a used one:
2.5 years of RFL to pay for, Warranty, services, who knows its's history and deprecation. Plus tyres may not be in new condition and brakes.
If you looked at both for a 2.5 year period, you start to realise how cheap that lease deal is, and it's a new car.
Go figure!
Spend £17k on a 'cheap' lease for 2.5 years and at 2.5 years +1 day you will wake up and realise you have no car to drive because it's gone back to the lease company, but your always have memories of your brand new car (£17k worth). Spend the same amount on a used car and at 2.5 years + 1 day your wake up and decide to what ever you like to the car because you actually own it Lets say it will cost me £17,000 for two and a half years.
This will cover me:
RFL, Services, and warranty for the period. Maybe 1x brakes & 1x tyres.
Buying a used one:
2.5 years of RFL to pay for, Warranty, services, who knows its's history and deprecation. Plus tyres may not be in new condition and brakes.
If you looked at both for a 2.5 year period, you start to realise how cheap that lease deal is, and it's a new car.
Go figure!
I see your point Gangzoom,you will never own the vehicle. If I bought a used M3, to get what I want I would have to spend roughly £35k, this for me will be a 60 month hp agreement. With the lease, I'm only tied in for 2.5 years financially with no other costs to worry about and the monthly payments would be very high on a 35k, 60 month term.
For some people it suits, others not. http://www.pistonheads.com/gassing/imgs/4.gif
For some people it suits, others not. http://www.pistonheads.com/gassing/imgs/4.gif
I don't agree with that £35K figure.
M3s are ten-a-penny and haemorrhage money (love them).....it's a buyer's market for sure and there are great deals to be had, even on AUC cars.....why not focus on this key fact and use it to your advantage?
You seem hellbent on leasing one, but I don't think, from what's been posted, you know what's going on financially.....I don't mean that in a patronising, piss-taking way either.....you need to be very, very careful.
I hope you see sense and don't do it!
M3s are ten-a-penny and haemorrhage money (love them).....it's a buyer's market for sure and there are great deals to be had, even on AUC cars.....why not focus on this key fact and use it to your advantage?
You seem hellbent on leasing one, but I don't think, from what's been posted, you know what's going on financially.....I don't mean that in a patronising, piss-taking way either.....you need to be very, very careful.
I hope you see sense and don't do it!
I agree with the original poster. Whether you realise 17k loss by leasing the car and waking up on the 1st day after 30 months and not having a car or you buy a car outright and suffer and then crystallise the depreciation after 2 years of ownership by selling the car is the exactly the same.
Example: My E61 M5 - I own it outright. if I am to hit a dealer bid next August, after 2 yrs of ownership, I think I would have to take a £15k depreciation hit. How is that better vs. leasing the brand new M3? Ah, yes, I wanted a M5 Touring. But the financial pain is just the same, regardless.
Example: My E61 M5 - I own it outright. if I am to hit a dealer bid next August, after 2 yrs of ownership, I think I would have to take a £15k depreciation hit. How is that better vs. leasing the brand new M3? Ah, yes, I wanted a M5 Touring. But the financial pain is just the same, regardless.
Jazzer said:
You seem hellbent on leasing one, but I don't think, from what's been posted, you know what's going on financially.....I don't mean that in a patronising, piss-taking way either.....you need to be very, very careful.
I hope you see sense and don't do it!
.......... Erm, he removes all risk around deprecation 100% and locks into a defined figure he knows 3 years in advance and you think he's not being financially careful?I hope you see sense and don't do it!
On a brand new car.....
Are you sure he's the one hellbent .....?
R5YUP said:
.......... Erm, he removes all risk around deprecation 100% and locks into a defined figure he knows 3 years in advance and you think he's not being financially careful?
On a brand new car.....
Agree with this ^^^On a brand new car.....
Some people just prefer a new car. The history is known, it comes with warranty, roadside recovery, servicing etc. all included. If you purchase, whether for cash or on finance, there is an unknown about depreciation which is probably the biggest cost on a high end new car, so to lease in this way can make sense.
At the end of the day, we all have a certain amount we feel comfortable spending on a car each month/year and you can spend that budget in many different ways. Although I don't personally lease, I know quite a few well off and savvy financial people who do prefer to pay for their cars this way.
R5YUP said:
Jazzer said:
You seem hellbent on leasing one, but I don't think, from what's been posted, you know what's going on financially.....I don't mean that in a patronising, piss-taking way either.....you need to be very, very careful.
I hope you see sense and don't do it!
.......... Erm, he removes all risk around deprecation 100% and locks into a defined figure he knows 3 years in advance and you think he's not being financially careful?I hope you see sense and don't do it!
On a brand new car.....
Are you sure he's the one hellbent .....?
I posted in a respectful manner, trying to give the OP the benefit of my wisdom in this area.
You see, I've been there, bought that T-shirt and very much lived to regret it.
It's interesting how you missed my point, a key point, about understanding what's going on financially.
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