Purchasing leased car - expected cost?

[TheFungle]

My Renaultsport Megane is due to go back in December after 3yrs and like many, I'm not sure I'm ready for the reality of 2023 prices.

Having never considered purchasing a leased car before, what can I expect?

Will the cost be based on the 2020 predicted 3 yr value or more likely, the actual 2023 value?

[DrEMa]

I thought about doing the same when my lease ended last April (cupra st 4drive). They wanted £28.6k for it, so definitely the current, at the time pricing. Ended up handing it back and getting a 140i instead as I couldn't justify to myself, putting that much in to a car I'd already paid over 8k in fees on when it was a 31k car brand new.

[loskie]

I leased an Audi Q5 from March 20 handing it back in Feb 23.

I could have bought it outright new in 2020 for £33k discounted price.

PCP was similar with a guaranteed future value of £18000 after 3 years and 54000m Similar payments to leasing.

BCA/Audi Finance wanted £28k when it came to the end of the lease. I'd paid for 54000m but it had 32000.

So that would have cost me a total of £44k for that car which I wasn't prepared to pay.

I saw it for sale for £29.5k.

What I would say for you car, look at dealer approved cars and knock what you think is a decent margin off. Bear in mind though that buying approved used will give you warranty, freshly serviced car (hopefully) and chance to get dealer to rectify small issues.

Buying your ex lease (although you know the car which can count for a lot) gives you no protection whatsoever.

[South tdf]

TheFungle said:

My Renaultsport Megane is due to go back in December after 3yrs and like many, I'm not sure I'm ready for the reality of 2023 prices.

Having never considered purchasing a leased car before, what can I expect?

Will the cost be based on the 2020 predicted 3 yr value or more likely, the actual 2023 value?

It will be priced on current market value. From experience the lease company tend to ask more than trade prices.

[Sheepshanks]

TheFungle said:

Having never considered purchasing a leased car before, what can I expect?

Do you know if the leasing company will sell to you? Many leasing companies simply don’t allow it.

[mrpbailey]

We had an Alfa Stelvio on lease from Feb 20 to Feb 23 with Leasy’s.
Had a price to buy it for £24.5k, which was very similar to the value WBAC put on it. Didn’t take it, and it’s now up for sale at a main dealer for £29k.

[Edible Roadkill]

I’ve bought 2 ex leases in the past, back when car values were normal.

It’s generally market price you’ll pay.

As said not all financiers allow it, my most recent car was through Lex and they don’t allow you to purchase.

[J1990]

Sheepshanks said:

TheFungle said:

Having never considered purchasing a leased car before, what can I expect?

Do you know if the leasing company will sell to you? Many leasing companies simply don’t allow it.

^ This is what I have just run in to, Hyundai finance will not provide a purchase price at the end of the lease. I found it rather surprising but evidently they'd rather either send it to auction or move it on at a dealership than offer a purchase price, even if that price was unrealistically high.
The market isn't appealing right now and we couldn't get the iPace or Polestar 2 to work for the dogs when the amazing pricing was on last month, so we've extended the existing lease informally for another 12months and if something comes up during that time we'll submit our one month notice.

As others have noted, unlike with a PCP, if you are provided with a purchase price then it will be based on current value and not the expected value when you took out the lease.

[Sheepshanks]

J1990 said:

^ This is what I have just run in to, Hyundai finance will not provide a purchase price at the end of the lease. I found it rather surprising but evidently they'd rather either send it to auction or move it on at a dealership than offer a purchase price, even if that price was unrealistically high.

You (at least, the person leasing the car) can't buy it because of the tax treatment of leases. However some will sell to another person (even your partner).

Some firms have disposal arrangements in place and will be contracted to send them all their cars. VWFS, for example, sell through a 3rd party company.

[Rich135]

I'm in a similar predicament, and I think they quote similar to market value if you were buying from a dealer, maybe a little less, but certainly more than the trade in or webuyanycar price.

Does anyone have any experience with whether you are able to counter their price with a lower offer? I am leasing through Leaseplan and the price is still a little more than I would want to pay.

[Axionknight]

Rich135 said:

I'm in a similar predicament, and I think they quote similar to market value if you were buying from a dealer, maybe a little less, but certainly more than the trade in or webuyanycar price.

Does anyone have any experience with whether you are able to counter their price with a lower offer? I am leasing through Leaseplan and the price is still a little more than I would want to pay.

Leaseplan wouldn't budge for me at all, this was on a Ford Focus back in June 2021.

The guy who collected it told me that in his experience/from what he has been told many times they were more often than not disinclined to negotiate, and that if I wanted to buy from them after a future lease then wait until it turned up at auction.

[Rich135]

Axionknight said:

Leaseplan wouldn't budge for me at all, this was on a Ford Focus back in June 2021.

The guy who collected it told me that in his experience/from what he has been told many times they were more often than not disinclined to negotiate, and that if I wanted to buy from them after a future lease then wait until it turned up at auction.

Thanks very much, that's helpful. I will give it a try and report back.