Car finance / lease, talk to me!

[Gareth-W]

It was contract cars https://www.contractcars.com/car-lea...contract-hire/
It is actually an E63 estate saw the offer earlier and misread but think that makes a better deal

Will struggle to get that deal Andy as MB have stopped making that model sometime ago ahead of the new one coming out shortly.

Also the no. 1 rule of leasing is not to take what you see on line as gospel. Always need to pick the 'phone, get it in writing and (rule number 2) ensure its from guaranteed funded allocated stock or factory build slots as well rule 3 that it's price protected....

[ach5]

This is a very good thread.

Not knowing anything about this sort of thing, I have always scoffed at people who leased rather than buying outright (due to my pathological aversion to debt of any kind), but I think I see the logic now.

I really want a new car (dont need a new car - just at a point where I fancy something new and perhaps a bit fancy as I have always had very simple and basic economy cars - paid for in cash), but the thought of spending £30k in cash in one go has stopped me buying the nice new car I'd really like, even though I have that cash on hand. I just get "the fear" whenever I spend big money (so I basically never do!).

I think leasing now actually seems the sensible way to go.

The leasing websites often have this; "24+9+3 deal" (or similar) but with no explanation of what this means, even when searching the FAQ sections of the lease websites - can someone explain this please?

I have been looking at the new Kia Sportage - the top spec version with the panoramic sunroof, but price wise they arent a million miles off an Audi Q3 or Q5, and on lease the latter becomes much more of a realistic option.

Also, when you buy, can you spec the car with exactly what options you want, or do you have to take whatever the lease company has? And do you collect the car from the lease company, or from the car dealership as if you'd bought it yourself? How does it work on a practical level?

Cheers!

[JP28]

I have been looking at the new Kia Sportage - the top spec version with the panoramic sunroof, but price wise they arent a million miles off an Audi Q3 or Q5, and on lease the latter becomes much more of a realistic option.
!

Out of that choice definitely pay the extra for the Audi. I have spent a fair bit of time in both recently and while I am not an Audi fan at all, it is way better than the Kia. The Kia looks good I agree and comes well spec'd but the engine, gearbox and suspension are a real let down.

[ach5]

Oh, one other question - can I part-ex my old car which I will no longer need, or will I have to sell that privately separately? (something I dread having to do).

I have spent the afternoon comparing Q3 vs Q5, and for me I think the Q3 has it, but the cost of optional extras soon adds up!!

[Devonian]

Oh, one other question - can I part-ex my old car which I will no longer need, or will I have to sell that privately separately? (something I dread having to do).

I have spent the afternoon comparing Q3 vs Q5, and for me I think the Q3 has it, but the cost of optional extras soon adds up!!

You'll have to sell that privately.

[Gareth-W]

To answer your questions ach5;

The quoted payment profile (9+23 for example) refers to the following and let's assume £300 a month figure for the car in question - deposit is 9 payment X £300 = £2,700 followed by X 23 monthly payments of £300 = your commitment coat wise for the 2 years.

Caveat is these costs exclude fuel/servicing in the tern and other consumables unless you pay extra for a maintenance package on top of that £300 monthly example. Also you'd have to agree a yearly mileage figure and if you exceeded that you'd have a (modest) penalty to pay.

You can chose to take a stock car if it exists physically and to your requirements or factory order a car and wait for it to come through. Adding options over and above the base car will increase the monthly rentals and as a very rough guide you add up the total cost of the options selected and then divide that by the payment profile (9+23 = 32 as per our earlier example) so you can assess the worth of that additional cost each month.

There are loads of ways to sell your current car and it doesn't need to be a private sale (which is often a real ball ache) to get it sold.

The Q3 is a tidy little car and a far superior product to the latest Kia Sportage.

Hope that helps and happy to answer any other questions.

[Gareth-W]

You'll have to sell that privately.

Not necessarily mate.

Options are;

Private sale
Trade sale
Part exchange
Car buying sites

[Devonian]

Not necessarily mate.

Options are;

Private sale
Trade sale
Part exchange
Car buying sites

By private I mean that he would have to sort the selling out himself - not sure if a lease company would do a part exchange. Think you would have to lease it through a main dealer.

- - - Updated - - -

http://www.dailymail.co.uk/money/cars/article-3541638/Even-footballers-buy-cars-finance-speak-man-helps-wealthy-buyers.html

Even footballers are at it :-)

[Gareth-W]

By private I mean that he would have to sort the selling out himself - not sure if a lease company would do a part exchange. Think you would have to lease it through a main dealer.

- - - Updated - - -

http://www.dailymail.co.uk/money/car...hy-buyers.html

Even footballers are at it :-)

Any decent lease company (which is a rare thing in itself......) will be able to assist but in reality these days it is not difficult to sell a saleable car via one of the routes mentioned.

[Devonian]

Any decent lease company (which is a rare thing in itself......) will be able to assist but in reality these days it is not difficult to sell a saleable car via one of the routes mentioned.

Try selling a car with one of the lease companies online or over the phone and see how far you get.

[Gareth-W]

Try selling a car with one of the lease companies online or over the phone and see how far you get.

I do this for living for clients so have a pretty good idea how do it thanks...

[Devonian]

I do this for living for clients so have a pretty good idea how do it thanks...

You don't need to thank me. I don't agree with what you've said . Move on mate...

[Gareth-W]

You don't need to thank me. I don't agree with what you've said . Move on mate...

It's ok, I was well brought up and believe beng polite is best.

Have a nice week mate.

[~dadam02~]

Great thread abd something I'm considering now having seen my 2nd hand Audi A3 depreciate through the floor over the last few years. Having applied some back of envelope calculations the leasing route seems much more sensible.

Maybe an obvious question but assume lease companies are best to hit around month end / quarter end as they have targets to hit etc and may have decent deals then?

[doebag]

Great thread abd something I'm considering now having seen my 2nd hand Audi A3 depreciate through the floor over the last few years. Having applied some back of envelope calculations the leasing route seems much more sensible.

Maybe an obvious question but assume lease companies are best to hit around month end / quarter end as they have targets to hit etc and may have decent deals then?

Correct, and also look for cars undergoing mid cycle refreshes or new generation models imminent - about three months ago there were some astonishing deals to be had on the then outgoing E-Class.

[Brighty]

Another lease question, how does it all work with getting a new lease when current one ends?

We're 18months into our first lease on the wifes car, so 6 months to go.

When some new lease deals are immediate delivery and others are 3 months or more, when do we need to start looking? If a car is ready before we need it, do we get them to sit on it till old lease is up, or do you have to take it when it's ready and hand back the old car early? What if new car is delayed?

Brighty

[Superal]

For me, it's simply a matter of guaranteed residual value (pcp) or known cost. I purchased a z4m coupe from new, sold 2 yrs later and would have saved a fortune if I had financed it!

[AndyMilts]

Another lease question, how does it all work with getting a new lease when current one ends?

We're 18months into our first lease on the wifes car, so 6 months to go.

When some new lease deals are immediate delivery and others are 3 months or more, when do we need to start looking? If a car is ready before we need it, do we get them to sit on it till old lease is up, or do you have to take it when it's ready and hand back the old car early? What if new car is delayed?

Brighty

Lots of ways, you can start to look now, but most better deals are quarterly based, so they will want delivery before the end of a certain month. My Q7 was before the end of June otherwise the financials will change because of subsidies from the manufacturer. You can also talk to your existing supplier and they may also let you be flexible, but can be hard to get a perfect swap over especially as things can change. So I would from recent experience be aiming to get the new car delivered at least a week before the old car goes back.

[Pitch3110]

Lots of ways, you can start to look now, but most better deals are quarterly based, so they will want delivery before the end of a certain month. My Q7 was before the end of June otherwise the financials will change because of subsidies from the manufacturer. You can also talk to your existing supplier and they may also let you be flexible, but can be hard to get a perfect swap over especially as things can change. So I would from recent experience be aiming to get the new car delivered at least a week before the old car goes back.

Ditto but my Q7 was in May.

How are you finding it.?? It is the most quietest, smoothest most comfortable motor I have had. Yes, it's BIG and not a looker but I am on the vast inside looking out. Tech is amazing.

Pitch

[AndyMilts]

Ditto but my Q7 was in May.

How are you finding it.?? It is the most quietest, smoothest most comfortable motor I have had. Yes, it's BIG and not a looker but I am on the vast inside looking out. Tech is amazing.

Pitch

It's coming on Friday looking forward to it

[steviefleming]

I'm in your camp, what am I missing?

Did you read above before commenting 👆

[smithdj10]

Did you read above before commenting

I honestly can't remember now, seems ages ago.


Sent from my iPad using Tapatalk

[steviefleming]

Well it does help ......it's kinda the idea of a thread .

Read it and you'll find out what your missing ......although I think I can guess that

[Pitch3110]

It's coming on Friday looking forward to it

You will be very impressed that I am sure of.

I secured mine through the nuts PCH deals for the 218ps engined S Line. Super quiet, pulls like a train and has been doing 40+ mpg. The virtual dash is very impressive.

Pitch

[MB2]

For me, it's simply a matter of guaranteed residual value (pcp) or known cost. I purchased a z4m coupe from new, sold 2 yrs later and would have saved a fortune if I had financed it!

I get how the monthly cost is low because they charge low interest rate and you are not financing all of the car but surely you are simply financing the depreciation (all be it capped) on a new car constantly as when you give it back they can only sell at its depreciated value

[AndyMilts]

I get how the monthly cost is low because they charge low interest rate and you are not financing all of the car but surely you are simply financing the depreciation (all be it capped) on a new car constantly as when you give it back they can only sell at its depreciated value

Because the deals are often subsidised my the manufacturers. Got an email today a VW Toureg for £249 plus vat per month.

[Gareth-W]

Because the deals are often subsidised my the manufacturers. Got an email today a VW Toureg for £249 plus vat per month.

To be fair you can get ANY car for £249 a month so it depends on the full context Andy....

[AndyMilts]

9+23 plus Vat sorry should have been more specific

[Pitch3110]

I get how the monthly cost is low because they charge low interest rate and you are not financing all of the car but surely you are simply financing the depreciation (all be it capped) on a new car constantly as when you give it back they can only sell at its depreciated value

But as said the manufactures some how subsidise also certain campaigns on models hence if you hit the right deal on or maybe on not stock cars the deals are unbelievable.

For me if wanting a new or new (ish) car and can get your head around not actual owning it makes real sence. As I posted earlier in the thread I have two very nice new cars costing me diddly squat compared to if I had purchased and a pile invested.

[thattallchap]

9+23 plus Vat sorry should have been more specific

The main issue with this type of deal is mileage, as this is always the key contributor to depreciation. I'm assuming your deal is 8k PA or less, Andy?

[AndyMilts]

The main issue with this type of deal is mileage, as this is always the key contributor to depreciation. I'm assuming your deal is 8k PA or less, Andy?

It was 10k, but the excess charge was 9p which is not too bad.

[Gareth-W]

The main issue with this type of deal is mileage, as this is always the key contributor to depreciation. I'm assuming your deal is 8k PA or less, Andy?

It was 10k, but the excess charge was 9p which is not too bad.

With VWFS their excess mileage charges are the lowest in the industry....to the point it's actually less expensive to take a lower mileage contract and pay the excess than take a higher one and pay more on the monthly rental.

That's not always the case but is with, for example VWFS and ALD Automotive. 9 pence per mile (which is subject to to VAT) is not bad at all and standard for the VW Touareg - on a VW Golf it's just 6ppm plus VAT for example....

[Crazytrain]

The excess mileage on my Polo gti is either 4.8 or 6.9ppm, can't remember which but it's pretty much an irrelevance at either price for my usage.
So far I'm about 3 months in to my first lease and loving it. The Polo is a proper bit of kit, fast enough to embarrass many in 'faster' cars yet very sensible and over 40mpg when not in hooligan mode...

[Pitch3110]

Wifeys Golf R is about 7ppm and my Q7 is 10ish ppm. Like Gareth said I just took the Q on 10k pa as the deal was nuts and another 5000 miles is only £500ish.

[neebsta]

I can never get these lease or PCP deals to work for me due to the mileage I do (Circa 40k a year). I find these deals work if you are operating within the mileage guides of circa 10k. Beyond that they simply look far less appealing.

I take my chance on 3 year old Audi's with about 60k miles on the clock and run them up to 150k to 200k miles, so far I'm on my 4th and I've yet to have any major mechanical issues (crosses fingers).

[Superal]

I get how the monthly cost is low because they charge low interest rate and you are not financing all of the car but surely you are simply financing the depreciation (all be it capped) on a new car constantly as when you give it back they can only sell at its depreciated value

It's the capped piece that interests me now, having been burnt in the past.
I currently lease a Ghibli but think I will go back to PcP next time, unless I can find a great deal like those being mentioned.

[~dadam02~]

Question, I really want to pick up a new VW Tiguain R-line which are just rolling off the forecourts next month. Cheapest I can find currently is £9.5k over 2 yrs and as it's a brand new model prices are going to be at a premium, but for brand new models how long after launch would you expect the lease costs to start dropping?

[Pitch3110]

Question, I really want to pick up a new VW Tiguain R-line which are just rolling off the forecourts next month. Cheapest I can find currently is £9.5k over 2 yrs and as it's a brand new model prices are going to be at a premium, but for brand new models how long after launch would you expect the lease costs to start dropping?

That seems a lot of dosh to me. My Golf R is just over £6k for two years and the Q7 £12k both with 10k miles per year.

Who is that with

Pitch

[Dave+63]

That's really cheap for the Golf R but they have been doing some great deals on that model. I don't think £9.5k is too bad for the Tiguan but I'm sure better deals will be available once it's been out for a while.

[AndyMilts]

My sister has a Toureg coming that's about is 10k over 2 years R design and there was a good deal with contract cars on a Q5

[~dadam02~]

That seems a lot of dosh to me. My Golf R is just over £6k for two years and the Q7 £12k both with 10k miles per year.

Who is that with

Pitch

It's £39k on the road, but yet to hit the streets. This is with Fleet Prices.

[~dadam02~]

Back again, on the topic of added extras - as we are at month end i thought i'd dip my toe in and see if i can secure myself a new car but thought i'd try and get some added extras thrown in. I want to add upgrade to leather seats (£1,475) and metallic paint (£560) to the car and want to chance my arm that i can get these thrown in free.

Is it reasonable to expect a dealer to chuck in a couple of grands worth of bits on a newly released model? Should i be pushing for more? Appreciate this is a call and try scenario but i wanted to arm myself with as much info before i get to it.

[reggie747]

Is it reasonable to expect a dealer to chuck in a couple of grands worth of bits on a newly released model? Should i be pushing for more? Appreciate this is a call and try scenario but i wanted to arm myself with as much info before i get to it.

I'd consider that hopeful rather than reasonable, very hopeful, but good luck nonetheless !

[Brighty]

Back again, on the topic of added extras - as we are at month end i thought i'd dip my toe in and see if i can secure myself a new car but thought i'd try and get some added extras thrown in. I want to add upgrade to leather seats (£1,475) and metallic paint (£560) to the car and want to chance my arm that i can get these thrown in free.

Is it reasonable to expect a dealer to chuck in a couple of grands worth of bits on a newly released model? Should i be pushing for more? Appreciate this is a call and try scenario but i wanted to arm myself with as much info before i get to it.

Usually with extras on lease deals, you pay the full price of them spread over your lease, so really not a good idea, for every £1k in extras, the lease costs you £1k more. You can ask though

Better would be to look for deals on a model that has leather as standard, you'll probably get better toys elsewhere then too

Brighty

[Gareth-W]

Usually with extras on lease deals, you pay the full price of them spread over your lease, so really not a good idea, for every £1k in extras, the lease costs you £1k more. You can ask though

Better would be to look for deals on a model that has leather as standard, you'll probably get better toys elsewhere then too

Brighty

Some truth in what you said there, but some options also feed into the residual value (a figure you won't see in a Contract Hire agreement) and therefore the full cost of the option is not therefore spread over the term rentals. That is mainly for significant options for that particular car and will vary from brand to brand and model to model.

As for the poster asking if he could get £2,035 of cost options gratis I'd be inclined to suggest that a) you can always ask and b) expect to be told "sorry, no can do" !!! For the most part all Contract Hire figures are net net with little or no further room for movement so unless the parameters of the contract are altered by the customer the figures are pretty much there.....

[Steve B]

I'd consider that hopeful rather than reasonable, very hopeful, but good luck nonetheless !

Ive just got a good deal with Mercedes for a C220 AMG line, they gave an overall discount of just over £8k to match another lease company for the same vehicle.
They included a few extra's as mentioned above and then discounted these and the price of the car!!
May be worth getting a few quotes from brokers and then go direct it has worked for me a few times.

Steve

[Olic]

Been trying to order a mini for the wife, the brokers so far don't seem to want to do the deals they have advertised! Either they don't respond or they wait a few days and then say deal ended 😡

Do the deals usually get better towards the new car reg dates?

Think I'm going to go to a local dealer, at least I can look someone in the eye!

[mowflow]

Been trying to order a mini for the wife, the brokers so far don't seem to want to do the deals they have advertised! Either they don't respond or they wait a few days and then say deal ended 

Do the deals usually get better towards the new car reg dates?

Think I'm going to go to a local dealer, at least I can look someone in the eye!

If you're going for a PCP then they might get better as a dealer may make a sacrifice to hit target but leasing in my experience follows less of a trend related to dealers making targets as they tend to be more a direct route to manufacturer. From what i've seen the trends in terms of good lease deals are a) car is about to be replaced or facelifted b) new model release and the manufacturer want to get a load out on the road either as a weird form of self marketing or ensuring future "nearly new" used stock. Audi did this with the new TT and the A4 and the facelifts S3 seems to be getting much better deals than the pre facelift ever did. c) parts supply means production grinds down on a specific car so a batch with a specific spec may be put on offer to keep the line running. The suspect the recent/current Cupra deals have something of this about them as they ran out of standard wheels and all the offer were on the black edition.

Walking into a dealer and trying to get a PCP near the end of a new car reg quarter is generally a crap idea i've found. I've always found you get ignored as by that time the pressure is more on getting those cars/finance agreements all through rather than selling a car to some guy wandering in off the street. Remember that these guys have monthly/weekly targets and a quarter with no new reg is probably a more difficult one than one with a new reg. A better way to catch dealers desperate to make a sale is to run a quote via drivethedeal, broadspeed etc. It takes 5 minutes to get the best deal that most local dealers will struggle to match but you won't get the pleasure of looking some salesman in the eye like you're Clint Eastwood in a stand off.

[Chukas]

Back again, on the topic of added extras - as we are at month end i thought i'd dip my toe in and see if i can secure myself a new car but thought i'd try and get some added extras thrown in. I want to add upgrade to leather seats (£1,475) and metallic paint (£560) to the car and want to chance my arm that i can get these thrown in free.

Is it reasonable to expect a dealer to chuck in a couple of grands worth of bits on a newly released model? Should i be pushing for more? Appreciate this is a call and try scenario but i wanted to arm myself with as much info before i get to it.

Did you manage to get a good deal on the Tiguan?
I'm looking to get one for the wife and am going the lease hire route.

[Pitch3110]

If you're going for a PCP then they might get better as a dealer may make a sacrifice to hit target but leasing in my experience follows less of a trend related to dealers making targets as they tend to be more a direct route to manufacturer. From what i've seen the trends in terms of good lease deals are a) car is about to be replaced or facelifted b) new model release and the manufacturer want to get a load out on the road either as a weird form of self marketing or ensuring future "nearly new" used stock. Audi did this with the new TT and the A4 and the facelifts S3 seems to be getting much better deals than the pre facelift ever did. c) parts supply means production grinds down on a specific car so a batch with a specific spec may be put on offer to keep the line running. The suspect the recent/current Cupra deals have something of this about them as they ran out of standard wheels and all the offer were on the black edition.

Just catching up on this thread and with my recent PCH's I have found the complete opposite to suggested. Golf R and new 2016 4M Q7 both of which were brand new models at the beginning of there life not about to be replaced. Could be wired marketing who knows but to ridiculous cheap cars compared with outright purchase or PCP.