I was prompted to look at short term contract hire deals following HJ's response to one of the queries in his Telegraph column last Saturday.
A bit of quick searching found a 1 year contract on a new Renault Scenic 1.5dci Dynamique for £139 per month!
My wife's current Scenic is getting a bit long in the tooth and I've got a fair bit of spending to do coming up....new tyres, timing belt, MOT, tax etc etc...
The above deal (as I'm not VAT registered) works out at about £190 per month to fund a brand new car for a year....I've done the sums and I couldn't borrow the money for those sorts of rates.
Anyway, just to say thanks for the tip!
Paul
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can you tell me more?
i have a need for a bmw 530/525d for just 1 year.
then will be getting a company car.
who did you find ?
ta.
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VT
The company was hr-leasing.com but they only do Renaults and Nissans. In addition I suspect Renault have got a Calais dock full of the 1.5s (would have preferred a 1.9) and hence there's the 12 month deal going around.
Not sure if you'll find anything on the BMW - HJ recommended www.dsgauto.com (who I think were advertising on this site).
It must have been about 4 years ago when I ran a company car but I did get a new Merc E240 with all the bits for £200 per month on a 12 month contract - again the manufacturer just had an oversupply (so I was told) and hence the deal, so I assume they're around....just means a bit of googling.
Paul
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Best I can find after a quick search is £370 per month (+VAT) for a 525d Touring on a 12 month contract.
Paul
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Also, VTE, you'll pay quite a bit more, in all probability, for 30k miles per year than 10k.
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mmmm true.
cheers for the fb.
guess i will be better off just buying a 5 diesel for around 18K
and then selling it in a years time with extra 30K on clock.
but do i get one in warranty or just out?
christt, its doing my swede in.
;-(
need to take off my car search hat again.
and put holiday finding hat on
think i need to change jobs and be a car salesman.
i just love cars that much. must be mad. sad.
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if you're doing 30k miles a year you want to think about the following:
hire purchase a car with zero deposit over 5 years. then after you've paid off 50% of the capital in repayments (roughly after 2.5 yrs) you just hand back the car to the dealer you bought it from and call it quits.
so you've lost 50% of the purchase cost of the car, but for 2.5yrs motoring doing 30k miles pa this will be much less than you'd have lost if you'd bought the car and were then needing to sell it.
this works best on cars that have a lower initial cost but higher depreciation e.g. top spec rover. because you're effectively limiting your depreciation to 50% in 2.5yrs which is not too bad. the benefits increase as your annual mileage does.
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if you're doing 30k miles a year you want to think about the following:
Is this considered a reasonable thing to do (it sounds perfect for my situation), or would the finance company come after you for any shortfall, and blackmark your credit rating?
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if you're doing 30k miles a year you want to think about the following:
I don't think that is legal and it is certainly not ethical. You have entered a contract to buy the car and you are defaulting on that agreement.
There are firms who advertise goods as, say, "zero deposit and nothing to pay until 2006" Using your logic you could use the goods until the first payment was due and then hand it back.
I don't think so!!
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Actually Cardew it is legal. Is it ethical? Erm... in all probability, yes. It's actually a statutory right under the Consumer Credit Act and refers to once the total credit price, i.e., 0.5 × (purchase price interest) has been paid.
You are not defaulting on a contract because it is an implied term of any consumer credit agreement that the buyer has the right to do so.
Note that the 'buy now, pay nothing until 2006' deal wouldn't enable you to do this until you'd paid off half of the credit price, irrespective of when the payments started. Of course if you took longer to do so then you'd get more use for your half of the TCP, but then the flip side of that is that the lender will get more interest if the agreeement lasts longer and most people let it run to the end.
However I'm not sure that, say, a £12k Rover 75 would be worth much less than £6k (which is what you'd have lost if you'd paid cash). As a result, the positive buyer wouldn't gain very much by handing back. It would make sense if you had paid £20k for the car and still owed £10k on it, but then you'd still have paid more than if you'd shopped around.
The provision exists to stop oppressive bargains and I think is subject to fair wear and tear, so you could argue that excessive mileage could be reduced. In practice, as long as you get a good deal in the first place, it really doesn't help the consumer very much at all.
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To clarify my first paragraph above, you have a right to hand back a product bought under a finance agreement (not a personal loan) once half the total credit price has been paid, which I didn't make clear.
Also the word that upset the swear filter is puttative, only spelled correctly - the first four letters are an 'interesting' Spanish expression.
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Actually Cardew it is legal. Is it ethical?
blah blah blah. Rest of quoted text from DavidHM's original post deleted by DD.
Thanks David - I had no idea about that statutory right. I must have led a sheltered life!
According to the car magazines few cars are worth more than 50% of their list price after 3 years even with average mileage. Some cars like large Alfas and Saabs much less than this.
I am unsure what your last paragraph means. If you bought a new car used it as a taxi and put starship mileage on it - 300K - what happens at 'hand back' time. Can you be sued for - what?
On a slightly different tack. My computer cost me £1,000 when new. Like all new PCs it was worth about £100 after a year. Had I bought it on HP would I be able to hand it back as soon as I had paid back 50%? Without any recrimination?
C
PS
Can ethics be flexible?
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This seems to a Renault 'thing' - my neighbours son works for a company that have some sort of deal where they get Renaults but are not allowed to go over 10,000 miles (there's a dire warning about doinf this) - then they hand them back.
He has a new car every few months. I guess it's not much different to manufacturers pre-registering cars.
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but Gdancer, i will be having a company car in 1 year.
they "dont do" opt out.
i think its really bad, our company has just got taken over by a large global company and they get vauxhalls.
i guess i keep my megane for a year, and then get a vauxhall.
wonder which is the best vauxhall for 30K miles?
none of them would be my answer.
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