Car lease expiring

Arunmor

I ran a few lease cars a number of years ago and my calculations to know what a good was.  Take the total sum to be paid Deposit and monthly lease cost, add it all up and divide by the term to give you the real monthly cost.  If that sum was less than 100th of the OTR price then you had a great deal if it was an 80th the it was probably an OK deal.

The one big change these days of course is interest rates but spending a little time running the sums on cars of interest would soon highlight, great deals, from OK deals, from overpriced deals.  Once you know what numbers your are look at you can do the sums in a matter of seconds.

One caveat the OTR price versus what discount you can get make it a bit trickier.  Great lease deals are a way for manufacturers to shift hard to sell stock without killing the residuals that year hoping for better sales figures going forward.

Phil_82

Manufacturer-backed lease deals can be a great way to get a bargain, especially on models they need to move. Discounts on the OTR price can muddy the waters a bit, but as long as you’re factoring everything in, your method still holds up well.

Do you find that certain brands or models consistently offer better lease deals than others?

If found some leasing companies were really helpful such Compass Vehicle Services Ltd and ended up saving more money as they helped me understand the process,

Arunmor

Phil_82 said:

Manufacturer-backed lease deals can be a great way to get a bargain, especially on models they need to move. Discounts on the OTR price can muddy the waters a bit, but as long as you’re factoring everything in, your method still holds up well.

Do you find that certain brands or models consistently offer better lease deals than others?

If found some leasing companies were really helpful such Compass Vehicle Services Ltd and ended up saving more money as they helped me understand the process,

Back in the day I ended up with a Chrysler 300C Estate followed by a Jeep Grand Cherokee at fantastic prices but as with most American cars they were not very popular (Chrysler disappeared from the UK market shortly afterwards) but you do sometimes get deals on quality makes but they are like hens teeth and you have to move fast.

Looking at the market for pre-reg cars sub 100 miles suggest that EV MGs should be good value and the Mazda MX30 (small battery but would some people) but will these filter down to the lease market?

I suspect the manufacturers are burying their head in the sand as EV cars are not selling to private buyers and prices may have further to fall. 

Phil_82

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

Ectophile

Phil_82 said:

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

The experience of EVs over the years is that the battery won't come close to failing within the lease period.  You're unlikely to find a battery with less than 7 years manufacturer warranty, and it could be as much as 10 years now.

Arunmor

Ectophile said:

Phil_82 said:

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

The experience of EVs over the years is that the battery won't come close to failing within the lease period.  You're unlikely to find a battery with less than 7 years manufacturer warranty, and it could be as much as 10 years now.

And how do they defy physics?  Do you know the answer?  

Ectophile

Arunmor said:

Ectophile said:

Phil_82 said:

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

The experience of EVs over the years is that the battery won't come close to failing within the lease period.  You're unlikely to find a battery with less than 7 years manufacturer warranty, and it could be as much as 10 years now.

And how do they defy physics?  Do you know the answer?  

No physics defying needed.  If you want a lithium battery to last, you have to look after it.

Most mobile phones don't, and wreck the battery in a few years.  Charging them from flat to full every single day does that.  That said, my Samsung Galaxy M31 came with an over-sized battery that lasts several days.  Even after 4 years, it's saying the battery health is Good.

But EVs take really good care of the battery.  When it says 100%, it isn't.  They won't let you charge that last few percent.  Similarly 0% charge isn't really flat either.  The battery charge rate is carefully monitored, and as you approach 100%, it gets slower and slower.  Almost all electric cars have active battery cooling on a hot day, so you won't cook them while rapid charging on a hot day.

And if a car has a range of 200 miles and the average person averages 20 miles a day, the battery will only need charging once a week.

The Chinese, who are ahead of everyone else, are now developing million kilometer lithium iron phosphate batteries for commercial use.

Arunmor

Ectophile said:

Arunmor said:

Ectophile said:

Phil_82 said:

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

The experience of EVs over the years is that the battery won't come close to failing within the lease period.  You're unlikely to find a battery with less than 7 years manufacturer warranty, and it could be as much as 10 years now.

And how do they defy physics?  Do you know the answer?  

No physics defying needed. 

Over time, the battery's capacity will degrade due to chemical aging, usage and number of charging cycles. To account for this, manufacturers design the battery with a slightly larger total capacity initially, ensuring that the usable capacity remains close to the advertised level for a longer period.

It's all about physics.

MattMattMattUK

Arunmor said:

Ectophile said:

Arunmor said:

Ectophile said:

Phil_82 said:

Leasing companies tend to be cautious about EVs, primarily due to concerns over battery lifespan and depreciation. Unlike traditional combustion engine cars, electric vehicles rely on batteries that degrade over time, and replacement costs can be substantial. This uncertainty makes it harder to predict residual values, which affects lease pricing.

I live in the uk and Peugeot and Kia offer some great deals. I remember at one point being able to lease a Fiat Punto for £99 a month - Those days are long gone now sadly.

The experience of EVs over the years is that the battery won't come close to failing within the lease period.  You're unlikely to find a battery with less than 7 years manufacturer warranty, and it could be as much as 10 years now.

And how do they defy physics?  Do you know the answer?  

No physics defying needed. 

Over time, the battery's capacity will degrade due to chemical aging, usage and number of charging cycles.

They do, but that rate is remarkably low for a properly cared for battery. Data from the early Tesla Model S cars, the oldest being 12 years now, indicates that a 6-10% loss of capacity after ten years and 200k miles. The wider data indicates that is similar across the whole of the Tesla range and for most other well made EVs as well. A friend has an eight year old 24kWh Nissan leaf with 80k miles on the clock, it still has 92% battery capacity and that is an EV with no battery cooling and very basic wear levelling. 

The vehicles that suffer most are usually hybrids, the batteries are a lot smaller and get deep cycled regularly which is the worst thing for a Lithium battery, keeping them in the 20-80% range most of the time and rarely running them below 5% or up to 100% make a huge difference to wear, which as previous users have pointed out is the problem with phone batteries, they are small and are continually deep cycled.

Arunmor said:
To account for this, manufacturers design the battery with a slightly larger total capacity initially, ensuring that the usable capacity remains close to the advertised level for a longer period.

They have a larger total capacity to account for both variances in capacity which happens in battery packs and to also give the headroom that the previous poster mentioned, a flat EV will have 2-5kWh still in the battery, because flattening the battery entirely can cause a lot of damage, they do not release that capacity to the user, it is there as a safety net. 

Arunmor said:

It's all about physics.

It is more about chemistry than physics.

born_again

Arunmor said:

Over time, the battery's capacity will degrade due to chemical aging, usage and number of charging cycles. To account for this, manufacturers design the battery with a slightly larger total capacity initially, ensuring that the usable capacity remains close to the advertised level for a longer period.

It's all about physics.

Check our RSEV on utube.
He has just bought a 3 year old Tesla with 200K+ miles & a 10 year old Leaf.
Look at the results on the state of the batteries...

Worry about batteries degrading. Not a chance 🤷‍♀️They are lasting for longer then the 2,3, 6 years the doom slayers would have.