Wanna: Lease hire a car

Mr_P_5

Hi guys,

I am for the first time been offered a company car and am looking between a a3 or Scirroco (Later the preference ).

I was wondering are there any companies that will finance a specific car i am looking at - looking at what is maybe 6months old on a forcourt with a few 1000 miles on + extras at the same price as a bog standard model.

if so can someone point me in a good direction?

thanks

Nile

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

PMSYORKS

Any independent contarct hire broker can do what you want, but, there realy is no point, I have spent a few years in the game myself and have never being able to source a used car lease cheaper than a brand new model. Main reasons are,

Dealer profiit on used vehicle, and low price paid by lease companies for new cars, due to their huge buying power, major lease players like Lombards, lloyds, Arval etc will always pay less for new cars than regular delaers pass used ones on for.

Have a look at CHAL (contracthireandleasing.com) an see what rates you can find.
The only time doing what you wants to do works is if you want a rare model that has a large waiting list and you dont mind paying a large premium.

Mr_P_5

Nile wrote: »

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

where has it been moved to?

Mr_P_5

PMSYORKS wrote: »

Any independent contarct hire broker can do what you want, but, there realy is no point, I have spent a few years in the game myself and have never being able to source a used car lease cheaper than a brand new model. Main reasons are,

Dealer profiit on used vehicle, and low price paid by lease companies for new cars, due to their huge buying power, major lease players like Lombards, lloyds, Arval etc will always pay less for new cars than regular delaers pass used ones on for.

Have a look at CHAL (contracthireandleasing.com) an see what rates you can find.
The only time doing what you wants to do works is if you want a rare model that has a large waiting list and you dont mind paying a large premium.

Thanks for your help.

Must say I thought it would be cheaper?! for example i have spoke to a company who would offer me a standard Scirroco 2.0 GT TDI for £259 +VAT PM based on 6mth deposit then 36 payments. this is on a factory model so has nothing "extra" on it. the value of the car is £23,450.

looking at my local dealer i can get the same car circa £19,950 - £22,000 depending on what extras it has along with millage (none done more than 10,000 miles).

i would have thought the finance/payment per month would be cheaper especially if the differance is £3k?

thanks

AdrianHi

Mr_P wrote: »

Thanks for your help.

Must say I thought it would be cheaper?! for example i have spoke to a company who would offer me a standard Scirroco 2.0 GT TDI for £259 +VAT PM based on 6mth deposit then 36 payments. this is on a factory model so has nothing "extra" on it. the value of the car is £23,450.

looking at my local dealer i can get the same car circa £19,950 - £22,000 depending on what extras it has along with millage (none done more than 10,000 miles).

i would have thought the finance/payment per month would be cheaper especially if the differance is £3k?

thanks

So your picking up a car 6 months old and as much as 10,000 on the clock and only getting a discount from new list price of £1500+
Realistically you could get that new one for £22500 or less so the discount is as little as £500 possibly up to £2500 which is better.

Is it worth it?
I would break it down as an avergage monthly expense until the car is 36 months old and judge it on that monthly figure.
When the car is 30 months old you have fewer months to spread the depreciation over so you need to start with a lower price.
Assume the car is worth £12,428 trade in at 36 months for this excercise (what car 53% 3 year residual - beleive it when I see it).
Brand new £22500 purchase you loose 279.77 a month depreciation.
6 months old £19950 purchase and you loose £250.73 a month depreciation. If you paid £20821.60 for the 6 month old car you would be no better off than buying it brand new. The difference in finance charges would be negligible.
That lease is 304.33 inc. VAT, the lease deals on more desirable cars like VW are not usually as good as for Vauxhall / Ford et. al. where leasing really can be cheaper due to the discounts the lease companies can get.

Mr_P_5

The difference wouldn't be £1500... With the cars i have seen include various extras for eg. car colour = £430, alloys = £660, Met paint = £430,. those 3 alone is another £1500.

10k miles is seriously worst case! i was looking at what has maybe been a reps car for 6months or ex display that is more than just the basic model. To me my choice is:

Get new base model @ 22500 cost = £259 + vat a month.

or

get 2nd hand for £19500 with £1500 extras included = ££cheaper a month??

Is that wrong?

thanks again

AdrianHi

Does make the picture look better.
OK I tell you where my thinking comes from.
I mix with a lot of people online who buy BMW's nearly new up to 6 months old. Like the Scirroco these are cars alledgedly hold their value well and rarely leave the factory in basic specification usually having say £1500+ of extras on board. Depends on what the "extra" is but often they are worth nothing come resale which makes any residual value % you see quoted "suspect".
As a rule of thumb people like this negotiate for and usually get 25%+ knocked off the original list price of an up to 6 month old car like this.

So if you like the sound of their approach take the Scirroco with £1500 of extras list £25,000 get 25% off that and you should be trying to get it for £18750. That would translate into a monthly figure lower by enough to make it worth not going for new or lease.
I don't beleive the £25K with extra's Scirroco is going to retain 53% of it's value at 36 months old as What Car claims.
Also a base model will be harder to sell. I think we both know Scirroco buyers will want alloy wheels and metalic paint as a minimum.

Mr_P_5

Thanks Adrian,

much appreciate your thoughts. Its easy when you see the price quoted by the lease company but as it is for the basic model it soon racks up when you want a few things - interestingly getting alloy wheels increases the residual value and so doesn't effect the monthly cost - well with the dealer i spoke with did!

i will bare the -25% off as seems a sensible way of looking at it.. again it will be finding the car i want with the extras i want.


Do you know any good finance companies to get quotes off or should i just go to a standard leasing company who will offer finance on a car i pick?

thanks again

PMSYORKS

basically, the problem with leaseing new cars V leasing low mileage used comes down to purchase cost and residual value. Your discount of £1500 on a used Scirrocco is way less than a finance company will get on a new one - they will get at least 10% ( and free metallic paint as it boosts the resale value) plus what ever extra percentage you can get off the supplying dealer - I routinely got another 2% on top on most of the VAG range.

Second problem comes at disposal time. The lease market works on depreciation, ie, the lease company calculates the difference between what they pay for the vehicle and what they get for it when the agreement is up and they sell it. This figure, plus a bit of interest and some profit margin is what determines your monthly payment.

So when they come to sell a used lease car (bought used) they will have paid more fot it than a new one, and, they will get less for it as it is at least a 2 owner car.Urgo, it costs you more to lease and isn't worth it from anybodies point of view.

PMSYORKS

Asa an extra point, go on CHAL as I mentioned earlier, find the 3 best deals available on the car/equipment package you want, contact the borkers and tell them what you want to pay, be firm, stick to your budget and see what they can do. Let them know you are serious and ready to place an order. Play one off agianst the other and watch the prices tumble. Give them a week to do it then order your car.
Now is a good time, near the end of the month and many will be keen to hit the first target of the year.