Buying a car at the end of lease ?

[Kananga]

What are people's experiences of being offered to buy the car at the end of the lease?

I know that the person leasing can't buy, for tax reasons, but it can be bought by a family member instead.

Just wondering if the leasing companies offer the cars at attractive prices (e.g. close to trade bid prices?)

[marathonic]

I believe VWFS made offers to allow purchase of their bargain Golf R lease cars at the end of the associated lease - and had no problems making the offer to the person that had the lease.

[Kananga]

md4776 said:

Never heard that before. What tax reasons?

Something to do with the VAT treatment of the car. Apparently some benefits to the leasing company will be removed if the person leasing buys the car.

[marathonic]

Kananga said:

Something to do with the VAT treatment of the car. Apparently some benefits to the leasing company will be removed if the person leasing buys the car.

Possibly only applies to business leases because, like I say, plenty have bought their Golf R's at lease-end.

[Kananga]

marathonic said:

Possibly only applies to business leases because, like I say, plenty have bought their Golf R's at lease-end.

Could be, was given the feedback above by the dealer who is supplying my new (leased) Alfa.

[Sheepshanks]

marathonic said:

Possibly only applies to business leases because, like I say, plenty have bought their Golf R's at lease-end.

You can buy your company ex-lease car - as you're not the agreement holder.


If it's PCH then VWFS specifically say you can't do that. They will, however, quote a price to anyone you refer them to - so your spouse/partner/random other person can buy it.

"We are unable to sell the vehicle to the agreement holder. If you know of a third party interested in buying the vehicle, they can get a quote by clicking here."
https://www.vwfinance.co.uk/en/privatecustomers/ho...

[Kananga]

Sheepshanks said:

You can buy your company ex-lease car - as you're not the agreement holder.


If it's PCH then VWFS specifically say you can't do that. They will, however, quote a price to anyone you refer them to - so your spouse/partner/random other person can buy it.

"We are unable to sell the vehicle to the agreement holder. If you know of a third party interested in buying the vehicle, they can get a quote by clicking here."
https://www.vwfinance.co.uk/en/privatecustomers/ho...

Yup. That sounds correct. So can't be sold to the person/entity on the lease.

[TJC46]

Kananga said:

Sheepshanks said:

You can buy your company ex-lease car - as you're not the agreement holder.


If it's PCH then VWFS specifically say you can't do that. They will, however, quote a price to anyone you refer them to - so your spouse/partner/random other person can buy it.

"We are unable to sell the vehicle to the agreement holder. If you know of a third party interested in buying the vehicle, they can get a quote by clicking here."
https://www.vwfinance.co.uk/en/privatecustomers/ho...

Yup. That sounds correct. So can't be sold to the person/entity on the lease.

Stand to be corrected but if it is a personal lease as against a business lease,you have paid the vat in the monthlies, so you can purchase at the end of lease term no problem.
I have a scirocco on a personal lease and was told that VWFS would be in touch before the lease term end, with an offer for me to purchase it direct. No mention of any third party names to use to purchase.

[Kananga]

Ok. So I'm back to being confused again.

In terms of the purchase price, is it usually based on trade valuation ? (Ie the price a dealer would pay based on CAP values ?)

[Sheepshanks]

TJC46 said:

Stand to be corrected but if it is a personal lease as against a business lease,you have paid the vat in the monthlies, so you can purchase at the end of lease term no problem.

Of course the proper answer would be for people to check for themselves.

I thought that VAT issue was to do with the finance company not paying VAT because they're a business - but I'm really not sure about that.

I did enquire about buying a 2yr old Golf GTD my brother had but the price was full forecourt retail.

[Kananga]

Sheepshanks said:

Of course the proper answer would be for people to check for themselves.

I thought that VAT issue was to do with the finance company not paying VAT because they're a business - but I'm really not sure about that.

I did enquire about buying a 2yr old Golf GTD my brother had but the price was full forecourt retail.

That's a shame. Was hoping lease companies would be happy to sell at trade!

[Sheepshanks]

Kananga said:

That's a shame. Was hoping lease companies would be happy to sell at trade!

Again, YMMV.

Buying 3yr old cars would be even worse vs from a dealer. No warranty, whereas an approved used one would be at least a year and often two.

[Kananga]

Sheepshanks said:

" YMMV "

Your Mileage May Vary ?

[Sheepshanks]

Kananga said:

Sheepshanks said:

" YMMV "

Your Mileage May Vary ?

Yep - you may get a price you're happy with.

[rich146]

TJC46 said:

Stand to be corrected but if it is a personal lease as against a business lease,you have paid the vat in the monthlies, so you can purchase at the end of lease term no problem.
I have a scirocco on a personal lease and was told that VWFS would be in touch before the lease term end, with an offer for me to purchase it direct. No mention of any third party names to use to purchase.

Hi.Ive got a Scirocco R on Personal Lease. its coming to the end of its lease in October. At what point of your lease did they inform you they would be in touch? Cheers

[culpz]

Kananga said:

Yup. That sounds correct. So can't be sold to the person/entity on the lease.

That was definitely my experience last year, just before my Scirocco went back. I, personally, couldn't buy it but they would allow a friend or family member to have a quotation to purchase the car. It was on a personal lease.

[TJC46]

rich146 said:

Hi.Ive got a Scirocco R on Personal Lease. its coming to the end of its lease in October. At what point of your lease did they inform you they would be in touch? Cheers

I arranged my lease through Windrush VW in Slough and went in person to collect.

Whilst waiting for the car i was chatting to Richard Gibson, the business development manager who had arranged my deal, and i asked him what happened

to the lease cars at the end of the term ?

He said the majority go off to auction, but VWFS would accept enquiries to purchase.

I would suggest you contact VWFS maybe 3 months before the lease end and see what they come back with.

Im sure many of us on here, including myself, would appreciate feedback on your outcome.

[docf1]

I was quoted 18k to buy my 65 plate golf gtd with 9k miles on it. Not worked out if that is worthwhile or not yet.

[loskie]

Surely the best bet is to follow it to the auction and buy it there. You have an advantage over the other punters in that you know the car.

[Gareth1974]

loskie said:

Surely the best bet is to follow it to the auction and buy it there. You have an advantage over the other punters in that you know the car.

Good idea, but I still can't work out why they wouldn't sell the car to the leasee at the end of the term for the same price, saving themselves auction fees and the cost of transporting the car there.