Ex lease prices

Honest John Back Room » The Back Room Archive
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Wed 17 Oct 2001 22:00
Ex lease prices - Stuart B
As a sort of follow on to the fleet auction thread just gone onto page 2 does anyone know how leasing companies calculate the amount they need if someone wants to buy a car before the lease is up.

Apart from the obvious comment that they try to maximise what they get out of the mug I have seen a few quotes lately which have had me wondering.

Eg case of a car two and a bit years into a three year lease.

It appears they ask for about the current book price which is fair enough but on top seem to ask for almost all of the remainder of the lease monthly payments which seems either stupid or a rip off.

Now I can accept that the monthly payments include a big element for depreciation. If they have assumed a straight line between purchase and residual values, then as most occurs in the first years they will have under recovered the true depreciation. But an amount of the monthly payment must be for tax, tyres, servicing, repairs and a profit element.

So what is the method? I have seen a quote for a 99T Focus Ghia TDi 5 dr 50k miles which amounted to £9900. That can't be right! Way over top book.
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Thu 18 Oct 2001 10:25
Re: Ex lease prices - Tony
They will ask for what they think they can get away with,and if they have an enquiry from a private punter they will often build in some extra to take into account the aggravation factor.Most leasing co's these days are pretty switched on and the days of real mega bargains are long gone [if they were ever here] .
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