Finance Example Private Leasing - Advise welcome!

[matt21]

Wondering if somebody could help interpret this.

Seen a couple month old Cooper S for £19,987 and have a two grand deposit.

Playing around with MINI Select to see if it is much worse than just buying the thing and with a £2000 deposit coming in at £467/month for 35 months for 20,000 miles pa.

However, the optional final payment of £5,900 interests me. Can I really get the car when it will be 3 and a quarter years old and say 60,000 on the clock for less than £6,000. If the car has a market value of £10,000 I could sell on and pocket the £4,000??

The interest rate scares me(!) but getting possibly "cash back" at the end is appealing. Am I missing something?

Full details below.

MINI Select MINI Purchase
36Term of Agreement: - - -Term of Agreement:
£467.12 35 monthly payments - - -- - - monthly payments
£19,987.00 On the road price: - - -On the road price:
£2,000.00 Total deposit: - - -Total deposit:
£17,987.00 Total amount of credit: - - -Total amount of credit:
£290.00 Credit arrangement fee*: - - -Credit arrangement fee*:
£10.00 Option to purchase fee**: - - -Option to purchase fee**:
£5,955.89 Optional final payment: - - -Total amount payable:
£24,455.09 Total amount payable: - - -Rate of interest:
20,000 Contract Mileage: - - -Representative APR:
3.42p Excess mileage charge per mile:
12.01% Rate of interest:
12.9% Representative APR:

[LukeSi]

Yup tis true. If the car is worth 10k at the end but your agreed final price is say 6k then you have got a dam cheap car which you can either keep or sell on.

[sinizter]

LukeSi said:

Yup tis true. If the car is worth 10k at the end but your agreed final price is say 6k then you have got a dam cheap car which you can either keep or sell on.

EFA

[CaptainSlow]

Yes, but remember that you've already paid the difference in your rental so you're just getting your money back.

To be honest the deal doesn't look great, have a look at a PCP deal from one of the leasing cos.

[Chrisw666]

The deals rely on the buyer wanting to PX the car at the end of the term when you may get upto £1k as a deposit towards your next car from the same dealer.

If you don't do that they hope you won't want to drop nearly £6k on a car you have already for three years and that they get the car into stock while you walk away.

[nixon1]

Have I missed something here?
I calculate a total amount payable of £25072.21 (assuming you buy it at £6k at the end).

Edited by nixon1 on Sunday 15th May 19:03

[matt21]

Top spec (leather, nav etc.) 57 plate Cooper S are still worth a good £10,000?

Next question is how far off the claimed 49mpg will it be?!

[MagicalTrevor]

I'd advise haggling over the interest rate, compared to other dealers that offer much lower finance rates. I'd suggest that nearer the 7% mark would be more appropriate.