Hi
My wife gets a good deal on lease cars and is due for renewal.
Any clues on how they come to their monthly price.
She is after something 5 doors and Focus, Astra sized and obviously wants to pay as little as possible.
I've heard that resale value comes into it, so a higher valued VW might not necessarily be more expensive than a lower value Kia.
And I'm guessing emissions and "green" credentials will keep the cost down because of the tax.
A recent example would be one of her colleagues who got an Audi A3 1.9 TDI for £150 a month all in (tax, servicing, insurance).
Any tips on which way to go?
Many thanks
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Lease Price = (Cost to buy less Estimated Value @ end of lease)+ Interest £££s on whole cost of car + Profit margin for lease Co)) Divided by say 24 or 36 or 48.
Some Cos pay the RFL, Tyres and servicing - this would be a figure in £000s divided by the lease period. Bigger mileages will see lease figure jump considerably over an 8K-10K per year lease often quoted in the adverts - lower end of lease value and higher maint
A3 for £150 / month Rubbish
Company will pay say a basic car for that person - say £200, £250, or £300 - if the person who get the car wants a more expensive car then they pay the difference - the £150 in your friend's case.
Key to cheaper lease deals is the upfront discount the Leasing Co gets - can be 40% or even more on run of the mill cars - can be zero for a Prestige car that is on a waiting list.
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www.nationwidevehiclecontracts.co.uk/Audi-A3_3_Dr-...m
For £150 a month there would be queues out of the door.
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The £150 for the A3 is the price quoted from the lease company, but as it's through an employer they are probably paying something basic up front as you say. (Mileage claims are drastically reduced as this is seen as a perk).
Nice equation on how to work out the price (head hurting just looking at it).
So if she goes for something popular she's more likely to get it at a good price.
It would be handy if the company gave a list of good offers instead of just asking for your preference.
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"So if she goes for something popular she's more likely to get it at a good price"
Not always no ........ cos of residual values the upper market cars (Audi BMW etc) can work out at not a huge amount more.
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A3 for £150/mth sounds like it might be an ECO (Employee Car Ownership) scheme. They're fairly complicated schemes which HMRC is looking hard at as they are basically tax avoidance.
The lease company probably could give a sort of price list if it wanted to, but the deals will vary a lot depending on the support available from the vehicle manufacturer that month.
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A friend of mine works for BMW GB and he tells me there is significant concern there at the moment over some of their residual values. In short, a side effect of BMW's record new registrations in recent years is a hint of the oversupply problems on the used market suffered by the more common mainstream brands. This is attributed to more and more people "opting out" of their company Mondeos and Vectras, in order to lease a base model Beemer instead.
Apparently, the 3 and 5-series diesels are still fetching good money on the used market, but everything else is taking quite a hit. This will push lease costs up, and new registrations down.
I wonder how many people driving 08 plate BMWs actually own them outright, or on a traditional HP agreement, compared to how many are leased, company owned, or on a PCP deal?
Cheers
DP
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A minimal amount of people.
Even the ones who say they do, probably don't if my experience when working in insurance is anything to go by.
Reasonably often a client would give it the large one about buying a (insert name of expensive car) cash and then a month later we would get a letter from a finance company asking us to confirm the car was insured fully comp.
I bet I have more of my money "invested" in my paid for 3K Vectra than the average owner of a car worth more than 50K has in his.
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Agreed.
Somebody said the other day that the answer to traffic congestion is to only allow on the road cars that are paid for.
Sounds reasonable to me...
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Blimey! , our cities would like Chinese ones 20 year ago, with everyone cycling to work......not a bad idea...
Edited by Dynamic Dave on 15/05/2008 at 20:14
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A3 for £150/mth sounds like it might be an ECO (Employee Car Ownership) scheme. They're fairly complicated schemes which HMRC is looking hard at as they are basically tax avoidance.
I hope it's pretty straight as it's the NHS!
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I hope it's pretty straight as it's the NHS!
I don't know if the NHS scheme is an ECO scheme, but common sense tells you that you can't, under normal circumstances, lease an Audi A3 for £150/mth. And presumeably that includes maint, insurance road tax etc?
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It will be like my lease then - subsidised to a certain level depending on your grade and whether you would be an essential user if you had to use your car.
I pay around £125 a month for my Golf, and that includes everything except the first £50 of the windscreen and a bit extra tax because I have a high private milage allowance compared to what is allowed for business miles. That's why I don't complain too much about the fact that the pittance I am allowed to claim back for business milage doesn't cover the cost of the fuel to do the miles.
Glacier - I had Audi quotes like that as well, and the equivalent Golf will be much cheaper (closer to what I pay). I was told this was because the lease company lease so many Golfs, they get a better deal. There was no way I could justify the extra money on an Audi with exactly the same engine, when the Golf came with a better spec as standard. I also had quotes for a Seat Ibiza and a Honda Civic and many others. Although they all had list prices of lower than the Golf, the lease for the Golf was less than all of them.
Edited by PoloGirl on 15/05/2008 at 23:44
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Cheers PoloGirl.
I've been hinting I'd prefer a Golf out of the two anyway. She's only gone for the Audi because of her colleague.
Which model comes in at that price? Might be worth a try.
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follow the link earlier in the thread, which takes you to a leasing co website. This is actually quite a good website as it has all the prices and will calculate them based on mileage and options.
I didnt find any others that did this, you always had to call or email (and in my experience, most of these companies are bad at getting back to you.) It is useful if you want to compare models and cars. In the interest of promoting links with one of Honestjohn advertisers/links, then dont forget to check out dsgauto.com.
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follow the link earlier in the thread which takes you to a leasing co website. This is actually quite a good website as it has all the prices and will calculate them based on mileage and options.
Sorry if I'm missing something, but the only leasing company link in the thread seems to require you to submit details and they'll send you a quote, rather than offering re-calculated costs online.
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the nationwide link, click get a quote and you can adjust for mileage and duration.
it is deep linked, so goes striaght to audi a3s, but you can navigate around using the links on the left.
not sure now about the options, think you do have to get a proper quote for this, but a simple rule of thumb is that you are paying for the full cost of your option (+a little bit) over the term of your lease!
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Glacier, mine's a 1.9 Tdi Sport, but I don't think they do that model any more. I'd have the 2 litre if I was choosing again, but the GTtdi was about £20 more per month.
Get your other half to get quotes from the fleet department, rather than faffing about on websites on here - that's the only way to get an accurate quote based on the leasing company they deal with and the deal they have with them. Our fleet people definitely earned their money when I was looking - I think I had about 20 quotes emailed to me before I finally made my choice!
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I am hoping to get a Fiat Bravo 1.6 Multijet 120 on a PCP deal at £150 per month. This will effectively be around £100 per month after savings in Tax, Insurance and Fuel over my current car are taken into account. However, the only way I can get it at £150 is by stumping up a much larger deposit than the minimum required. This means around £2500+ instead of £1000. I am happier with the lower monthly payments rather than having the extra deposit money in the bank though.
Some may say that if I have enough for a large deposit, why not go for a 0% finance deal. Unfortunately, I would still have to finance around 10k over 3 years which is a lot more than £150 pm.
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The boss got her quote for the same spec Audi A3 today.
Gone up from £150 to £249!
I'm sure they just make the prices up.
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>I'm sure they just make the prices up.
It's worked out on lots of things though - the proportion of private miles to business miles (based on what you claimed for last year), whether you work part time (in which case you pay more because the employer subsidy is less) and whether you would be an essential user if you had to use your own car.
If it's an identical spec and all the other factors like the ones above are the same, then yes, someone's messed up somewhere!
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>I'm sure they just make the prices up. It's worked out on lots of things though
A key factor is the "support" (discount) offered to the leasing company by the manufacture. This changes all the time, usually quarterly, but can be *very* substantial. Sometimes they'll subsidise both the price and the finance (to the lease company) rates.
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