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?)

[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.

[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.

[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.

[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 ?)

[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!

[Kananga]

Sheepshanks said:

" YMMV "

Your Mileage May Vary ?