Best Lease Car Deals Available? (Vol II)

Best Lease Car Deals Available? (Vol II)

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imdeman87

870 posts

90 months

Monday 11th July 2016
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sider said:
Can I pitch a question on these cheap Golf R's / Leon Cupra's etc.

Say, the deals are circa £200-250 a month - which they seem to be? This being on say 8-10k a year over 2 or 3 years with 6 or 9 down.

So, say:

9+35 x £200 on Leon Cupra = £8,800 cost.

Car is circa £28k or so now.

Assume finance firm gets 10% off - say cost = £25.2k

Is the finance firm/dealer really saying that the car is going to be worth more than £25.2-£8.8k [£16.4k] to them?

I know this is how leasing generally works.

However, I reckon £16400 for a 3 year old Leon Cupra with say 24-30k on it may be a tad ambitious?

I'm all for seeing more hot hatches on the road but reckon that the more good offers that appear like this, the worse the depreciation will be. Catch 22 really - cheap deals mean more cars and better affordability, but also lead to worse depreciation which ultimately drives down value and means lease deals will only get more expensive.

I don't work in finance or the car trade so am probably wrong, but that's just my initial take on it.
I don't work in finance or the car trade but here's my educated guess....smile

The Cupras are actually £30k list price. Joe Bloggs can buy this car for £23k (£7k discount). I suspect the cars are bought by the finance company/VWFS for about £21k due to the large numbers they order. 2 year lease cost, based on 5k pa, nets the finance company £5.5k. So net value of car at the end of the lease is around £15.5k.

I'd say 2 year old Cupras with 10k miles on the clock would have a sticker price of £19k on the forecourt (possibly more) plus add in a hefty finance deal...I can certainly see where the money's made. Add to that increased public awareness of the cars on the road, car factories are kept busy, better control of 2nd hand car market, etc.

adaM3

510 posts

201 months

Monday 11th July 2016
quotequote all
Hitch said:
I have a Golf R estate confirmed with Vindis and they promote you tracking your car. Mine is due to be build mid-Aug and should arrive mid-Sept.

I'll probably have to tell the wife at some point.
Ditto (all round!!)

jonwm

2,214 posts

97 months

Monday 11th July 2016
quotequote all
imdeman87 said:
sider said:
Can I pitch a question on these cheap Golf R's / Leon Cupra's etc.

Say, the deals are circa £200-250 a month - which they seem to be? This being on say 8-10k a year over 2 or 3 years with 6 or 9 down.

So, say:

9+35 x £200 on Leon Cupra = £8,800 cost.

Car is circa £28k or so now.

Assume finance firm gets 10% off - say cost = £25.2k

Is the finance firm/dealer really saying that the car is going to be worth more than £25.2-£8.8k [£16.4k] to them?

I know this is how leasing generally works.

However, I reckon £16400 for a 3 year old Leon Cupra with say 24-30k on it may be a tad ambitious?

I'm all for seeing more hot hatches on the road but reckon that the more good offers that appear like this, the worse the depreciation will be. Catch 22 really - cheap deals mean more cars and better affordability, but also lead to worse depreciation which ultimately drives down value and means lease deals will only get more expensive.

I don't work in finance or the car trade so am probably wrong, but that's just my initial take on it.
I don't work in finance or the car trade but here's my educated guess....smile

The Cupras are actually £30k list price. Joe Bloggs can buy this car for £23k (£7k discount). I suspect the cars are bought by the finance company/VWFS for about £21k due to the large numbers they order. 2 year lease cost, based on 5k pa, nets the finance company £5.5k. So net value of car at the end of the lease is around £15.5k.

I'd say 2 year old Cupras with 10k miles on the clock would have a sticker price of £19k on the forecourt (possibly more) plus add in a hefty finance deal...I can certainly see where the money's made. Add to that increased public awareness of the cars on the road, car factories are kept busy, better control of 2nd hand car market, etc.
I was told by a dealer that I didn't buy from that in brief:

No one walks into Seat and puts £30k plus cash on his desk for a Cupra, in fact they don't sell that many at all, mainly have them as demos or managers cars.
This recent campaign is all going through VWFS, so the above is correct "we" pay the depreciation for them, then they sell for £20k probably financed through a PCP or similar again with VWFS so a double bubble for them, which is why they don't like you buying them at the end.

Big Al.

68,038 posts

241 months

Monday 11th July 2016
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