Buying your Golf R when the lease ends?

[Captain Caveman]

Having leased before, I know you get the opportunity to buy your car from the lease company at the end of the lease, which for them is better than disposing of it at auction. The asking price from the lease company can vary, but is normally somewhere between retail and trade value of the car.

What experience do any of you have in terms of the offer price at the end of the lease on your Golf R? What sorts of prices are people being offered?

I am debating whether to go PCP with guaranteed balloon, versus Lease, with the gamble of maybe buying at the end, but have no idea what the lease company might expect for the car? Webuyanycar value a 2 year old, 15k mile car at £19k, and the retail value is between £21-£23k for a base spec car.

I have seen new cars being advertised as low as £24k-£25k, meaning that even if it was only worth £19k after 2 years, I'd only lose £5k, versus the £7k that I'd spend on a lease, but with greater flexibility.

What are people's real experiences who have been through the 2 year lease deals?

[adaM3]

I didn't think a lease gave you the option to buy?

[jimi]

adaM3 said:

I didn't think a lease gave you the option to buy?

The option is available. Its in all the paperwork you get from VWFS and also its on their website. It's a service called Driver Sales. Have a look for it.

The price offered will be quite high though, they don't give them away.

[adaM3]

jimi said:

adaM3 said:

I didn't think a lease gave you the option to buy?

The option is available. Its in all the paperwork you get from VWFS and also its on their website. It's a service called Driver Sales. Have a look for it.

The price offered will be quite high though, they don't give them away.

Shame they don't offer them at a good price - it would encourage people to keep them (and perhaps look after them more) and would save them putting them through auction.

I could run the world me...

[Captain Caveman]

I am assuming with the volume of Golf Rs that have gone through on lease, there must be quite a few people who purchased at the end of the deal. Obviously, there is no guaranteed future value, and they can't openly advertise the purchase option for VAT reasons, but as the cars all go to auction at the end, it's in the leasing company's financial interest for you to buy it.

So who's actually bought their Golf R, or requested a price to purchase?

[acme]

[I have seen new cars being advertised as low as £24k-£25k,
[/quote]

[acme]

Captain Caveman said:

I have seen new cars being advertised as low as £24k-£25k,

This is a serious question.....really, can you point me in the direction please?

Appreciated

[Jonno02]

acme said:

This is a serious question.....really, can you point me in the direction please?

Appreciated

£25,680

https://www.drivethedeal.com/buy-a-new-car/VOLKSWA...Nav75528.html?Capid=75528&type=discounted

[jimi]

Captain Caveman said:

Obviously, there is no guaranteed future value, and they can't openly advertise the purchase option for VAT reasons, but as the cars all go to auction at the end, it's in the leasing company's financial interest for you to buy it.

Not necessarily. The finance company will owe the manufacturer a residual value at the end of the lease term, this is the price you will be offered the car for so they clear their liability.

Also - most if not all of these cars will be sold at BCA closed auctions where the buyers will all be from VW dealers, this way they can control the used car pricing by setting the reserves close to the residual value to minimise losses.

[Captain Caveman]

jimi said:

Not necessarily. The finance company will owe the manufacturer a residual value at the end of the lease term, this is the price you will be offered the car for so they clear their liability.

Also - most if not all of these cars will be sold at BCA closed auctions where the buyers will all be from VW dealers, this way they can control the used car pricing by setting the reserves close to the residual value to minimise losses.

Surely they will try and profit form the deal, rather than just expecting to get back what the car owes them?? A two year old base car is worth about £18-19k at auction, so I would expect them to ask for say £19-£20k at least?

[jimi]

Captain Caveman said:

Surely they will try and profit form the deal, rather than just expecting to get back what the car owes them?? A two year old base car is worth about £18-19k at auction, so I would expect them to ask for say £19-£20k at least?

Like I say, it depends who is at the auction - in a closed dealer group auction they will sell for over £20k. Even if they are only worth £19k market value - this is the manufacturer keeping the residuals high.

[jonwm]

I heard VWFS don't like you buying them, not sure if its something to do with the other PCP deals they run.

I have a company car and my last one (61 plate 318d M Sport 125k miles) was offered to me for £6700 similar on auto trader were £11k, one stipulation in the paperwork was that it was not to be sold within 6 months, not sure how they check though

[va1o]

I've heard people mention that BCA will offer to sell it to you for a fixed price at the end of the lease. As otherwise they will be handling the collection and subsequent auctioning of the car, so easier just to sell it to the 'driver'.

[xjay1337]

I think the idea is that after the 2 year lease there are loads of low mileage, dealer serviced cars which can then be all sold for a fairly standardised price. Assuming they are all within the VW Dealer Network.
It doesn't seem to have worked though, I can't see how you can buy (err, hire) a car of that performance, quality etc, and have it lose only £250 a month. Just doesn't.

While Mk6 Golf R are still well over the £15k (a quick look reveals only a handful on Ebay and they are all 2011/2012 models between £15 and £18k) , I can see the Mk7 R rapidly falling towards this valule, and I think in 18 months the Mk6 R will be a more valuable car!

Scary thought.

[Captain Caveman]

The car has been for sale for 2 years, and despite lots of supply, used prices seem to have held up pretty well. Even base spec cars are still retailing around £22-£23k, despite being able to buy a new one for £25-£26k.

The continued cheap lease deals suggest past performance is giving VW and leasing companies confidence about the residuals, allowing them still to maintain the deals knowing that the car will still be worth plenty after the lease period ends. Cheap lease deals either mean the leasing companies are achieving massive discounts, i.e. 30%, or the residuals are high.

[Rscut]

xjay1337 said:

I think the idea is that after the 2 year lease there are loads of low mileage, dealer serviced cars which can then be all sold for a fairly standardised price. Assuming they are all within the VW Dealer Network.
It doesn't seem to have worked though, I can't see how you can buy (err, hire) a car of that performance, quality etc, and have it lose only £250 a month. Just doesn't.

While Mk6 Golf R are still well over the £15k (a quick look reveals only a handful on Ebay and they are all 2011/2012 models between £15 and £18k) , I can see the Mk7 R rapidly falling towards this valule, and I think in 18 months the Mk6 R will be a more valuable car!

Scary thought.

They make their money from the finance package. You don't see many APRs under 10% for used cars. If you put 5k down and borrowed 15k over 4 years at 10%, you would pay £3261.12 in interest alone. That's going to recoup some of the initial lease rental money, plus they won't have paid anywhere near 25/26k for the car! There's 5k in vat straight away!

[rllmuk]

Funnily enough was reading about this in my paperwork that turned up the other day - says you're welcome to buy it you just call them for a price at the end. It does say you buy it without a warranty however though, which I thought was interesting (2 year lease, no 3rd year warranty from the dealer network I presume).

[acme]

Jonno02 said:

£25,680

https://www.drivethedeal.com/buy-a-new-car/VOLKSWA...Nav75528.html?Capid=75528&type=discounted

Thanks. Link doesn't seem to work but I'll take a look.

Cheers

[va1o]

rllmuk said:

Funnily enough was reading about this in my paperwork that turned up the other day - says you're welcome to buy it you just call them for a price at the end. It does say you buy it without a warranty however though, which I thought was interesting (2 year lease, no 3rd year warranty from the dealer network I presume).

That doesn't sound right to me, all UK supplied VWs have the 3-year/ 60k miles warranty attached to the car.

Maybe they just mean they aren't offering any additional warranty, i.e. if it was a 3-year lease and you bought at end they wouldn't be giving you a warranty. Unlike an approved used car where you would be given a 1-year warranty.

[Emeye]

Who is going to be buying all these ragged 2 year old Golf Rs from the dealers for £20-odd grand when you can buy a new one for not much more or lease one for peanuts?