Ex company / lease cars

Arklight

Gwendo40 wrote: »

Well people try to dismiss it as a conspiracy theory, but I believe I'm correct in saying that something like 80%+ of all new car ''sales'' are some form of lease/PCP deal, and I'd imagine with a large proportion of those deals the customer will take the option of a another new car at 3 years old as they can't afford/don't want to buy the car outright.

Surely this means the market should be awash with cheap secondhand 3 year old cars by now? And yet in fact, the cost of those type of secondhand cars has generally risen over time with the proliferation of leasing/PCPing.

If the car industry is sitting on thousands of 3 year old cars not wanting to sell them, then before long it will be sitting on thousands of 4 and 5 year old cars that are going rusty with flat tyres and dead batteries.

The longest they can eke out a 3 year old car and sell it is 51 weeks.

motorguy

Gwendo40 wrote: »

Well I suppose these 3 year old cars appear to be ''cheap'' in comparison to the price of new cars... but that's only because the rrp of new cars has been greatly inflated by the proliferation of cheap and easy credit through pcp, leasing etc etc.

They appear cheap because they are cheap. You can buy a 3 year old Golf with average miles or less for under £10K.

A new one, even after all discounts is £20K+

motorguy

Arklight wrote: »

If the car industry is sitting on thousands of 3 year old cars not wanting to sell them, then before long it will be sitting on thousands of 4 and 5 year old cars that are going rusty with flat tyres and dead batteries.

The longest they can eke out a 3 year old car and sell it is 51 weeks.

And in that time its depreciated approx £200+ per month (depreciation isnt calculated yearly), they've had to pay to store it and they've not being able to use that capital thats tied up for that duration.

Thats a hell of a gamble to take that you're going to recover all that and more at some point down the line. :eek:

Penelopa.Pitstop

Gwendo40 wrote: »

Surely this means the market should be awash with cheap secondhand 3 year old cars by now? And yet in fact, the cost of those type of secondhand cars has generally risen over time with the proliferation of leasing/PCPing.

It is from time to time in case or rarer models. To give you example: Audi S8. When cars started to come back from lease after 2 years, at the end of 2017 and beginning of 2018, market was flooded with them. Suddenly more than 50 cars showed up on Autotrader, and prices of used ones went down 20%.

It doesn't happen in case of popular models, because there's plenty of them on a market any way.

[Deleted User]

One of my neighbours had a motability car but the whole family treated it like a family pool car. Then one day I saw it for sale at a local second hand car place marked up as ex motability - one lady owner.

Never trust what they say.

Scrapit

Deleted_User wrote: »

One of my neighbours had a motability car but the whole family treated it like a family pool car. Then one day I saw it for sale at a local second hand car place marked up as ex motability - one lady owner.

Never trust what they say.

I'm always amused at ads with this sort of thing, "one lady owner", "Doctor former keeper" etc. How much does that add in value? 50 pounds, a thousand? Only a fool would give that any attention at all. Buy on condition.

AdrianC

...plus, of course, the inherent contradiction in "ex-motability, one lady owner". No, one corporate owner.

Ganga

There was a garage/dealership near us that was awash with "3 year old cars " all returned under lease/pcp deals,i was told they went bust!could not shift them on.

AdrianC

Ganga wrote: »

There was a garage/dealership near us that was awash with "3 year old cars " all returned under lease/pcp deals,i was told they went bust!could not shift them on.

Then they were buying too expensively.

vansboy

PierremontQuaker03 wrote: »

The last two cars I have had were 3 year old company cars and both have been great cars.

There was a time....20 years ago when I had my site ... ex company/fleet/lease cars WERE a good buy, for everyone!


The fleet owner had bought at a discount, the service bays earned well, as higher mileages, meant regular servicing, which the lease contract enforced, the trade could buy at good prices, compared to 'low milage private owner' stock and the new owner who used it at average mileages, found that it would still be worth as much as a private owned model, come trade in time.


Not so much same market now, as you might have had only a couple of oil services as the on board gizmos would dictate, rather than a fleet service manager. The FULL services would need the new owner to make the rest of the car have some sort of inspection.


VB