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Found any attractive car leasing deals?

Discussion in 'off topic' started by Rana, Oct 23, 2021.

  1. Rana

    Rana pfm Member

    Since my employer ceased their amazing company car scheme and now offers a cash (not-so-)equivalent, my last three cars have been 2/3yr personal leases. I've been very lucky of finding great deals and have had a Mercedes C200, Volvo S90 Inscription and Audi A6 45 Quattro all at around £280'ish a month with 9 months down. My current A6 contract ends on March 30 (having been extended due to Covid). I usually use Central Car Leasing or Select Car Leasing, but been looking around and, due to the current supply chain shortages and the spectre of increasing financing costs, I can't find any good deals.

    If anyone finds any amazing deals please do post them here. My target cost range is now increased up to £350/month inc. VAT at 9 months down and 8000 miles/yr. I may go over that (say £400) for special cars on good deals, as this is likely to be my last "nice" car since I will be retiring by the end of the term.

    Ideally it would be a comfy 5 seater and able to easily cover long motorway distances to visit my son at uni and back in half a day (c.350 miles) - so exec type saloons and estates preferred. Found this and phoned up but they said they doubted if they could still honour it.
     
  2. Rana

    Rana pfm Member

    The reason I lease is that I want a new'ish car under full warranty and prefer to keep my capital fully invested. The capital I would have spent in buying a car is currently giving me sufficiently good returns that the cost of the vehicle lease would be covered.
     
  3. stevec67

    stevec67 pfm Member

    My folks took on a lease 5 years ago or so, they got a much better deal for leading an 18 month old car. £4k down, £200 a month, BMW 5 series. The lease expired a year ago, they paid off the balloon and kept it, nothing else so good would have come along at the price. So as ever, recent used can throw up some bargains.
     
    Tarzan, Snufkin and Rana like this.
  4. Tony Lockhart

    Tony Lockhart Avoiding Stress, at Every Opportunity

    If you can find a decent, recent used car at sensible money.
     
  5. stevec67

    stevec67 pfm Member

    At the moment it's hard work indeed.
     
  6. Woodface

    Woodface pfm Member

    Basically you are screwed, 6month waiting list for new cars but those on PCPs are in a nice position. My wife has been offered a new Golf GTi for slightly less p/m than she is paying for her MK7 version. Hers is quite a rare 3dr model in the right colour with the more powerful motor.

    She has twice as much equity in the car as when she started. Loads of people are set to p/x on a good deal & happily wait 6months for a new one. Unprecedented situation at moment, dealers cannot get stock to keep up with demand.
     
  7. PhilofCas

    PhilofCas pfm Member

    Hi, so it’s advertised at £363 (8,000 9month down and 36 month term), but it’s a ‘guide price’, what do you think the price might be?
     
  8. Ginger

    Ginger pfm Member

    Or save the income from the capital investment and buy a car. That's what I do. Just got both cars going out of warranty but chance of major failure seems low. I'll keep rolling up the returns from investment . If I was getting an allowance from my employer, I'd definitely buy outright and not lease.
     
  9. doctorf

    doctorf left footed right winger

    Leasing does not have a balloon payment at the end, whereas PCP does.
    Are you sure it wasn’t a PCP?
     
    Woodface likes this.
  10. stevec67

    stevec67 pfm Member

    It may have been, I didn't see the paperwork. Basically they had the choice of give it back or hand over £x at the end, they chose to hand over the cash and keep it. The thing looks great, 8 years old, 70- odd k, probably the last car my dad will own. My mum long since gave up driving, fortunately. She'd become a hazard to shipping and needed to stop before someone was killed.
     
  11. Rana

    Rana pfm Member

    Well those three times I've leased in the past, the price advertised on special offers has been the price I paid. I now think the reason is because it looks like that is the run-out model, so I suspect it has ceased production.
     
    PhilofCas likes this.
  12. Rana

    Rana pfm Member

    Found this via Carwow:

    Giulia Saloon 2.0 TB 280 Veloce [Performance brake] 4dr Auto Lease Deals (lease4less.co.uk)

    About £50/month less than normal so will call them during the week to investigate.

    Why lease? I can afford to buy outright however the "opportunity cost" is that I can roughly expect to get 10% per annum average on my capital over 48 months in a simple Vanguard world equity tracker fund, so that is why I don't feel like buying outright. Of course there is the risk that 10%/annum average return won't be realised but looking at fund history it is a reasonable expectation. Here are some example calcs on an Alfa Giulia Veloce buying outright (at a discounted price of £38k) and then selling at 4 years recovering say £18k compared to using Alfa's own scheme and leasing the one I linked. It should read "supply" not "supplier". I have not included tax, insurance, maintenance as roughly they will be the same (leasing will be slightly cheaper as tax is included).

    [​IMG]
     
  13. Johnjo

    Johnjo pfm Member

  14. Mynamemynaim

    Mynamemynaim 38yrs a Naim owner


    REALLY???
    Please tell where you get £350 per month return on say a £60k car cost
     
  15. Rana

    Rana pfm Member

  16. Rana

    Rana pfm Member

    Calculations are in the post above assuming 10% opportunity cost per annum. Currently my investments are returning me well in excess of that (and in some years they will be less).
     
  17. Johnjo

    Johnjo pfm Member

    Agreed, Volvo seats make Audi’s feel like park benches.
     
    Snufkin and Rana like this.
  18. Ginger

    Ginger pfm Member

    I might well be talking out of my backside here but isn't there another sum to do Rana? Spend the lump sum on buying the car (since it'll be your last for a while and so you may well keep it for a few years) . Then put the employer's allowance into the investment. What's that? £300/month? £3600 pa becomes about £26k with 10% compound interest for 4 years, versus about £17.5k compound on a £38k investment. Of course you'll have put £3.6k pa in monthly , so that's cost £14.4k, making your profit only about £12k, against your £17.5k from a £38 investment. But you'd own a car, whereas you wouldn't on lease. Bet the car's worth more than £5.5k after 4 years and 5k miles a year.. is my maths off?
     
    Rana and Woodface like this.
  19. Rana

    Rana pfm Member

    Yes, excellent catch about the employer allowance. I forgot about that and should have accounted for that in all the calculations and should have added that in the case 1 and account for it in the other scenarios. So my monthly allowance after tax and NI at my tax rate comes to £17k at 4 years assuming 10% annual compound interest (calculated monthly) and this needs to be offset against the monthly payments in the two Alfa dealer scheme and lease company scenarios. This is the revised calculation:

    [​IMG]

    So the 1st two cases are equal but the lease scheme still wins out if I can get it at that price. I have kept it at "no car" left at 48 months - as I would buy reliable Toyotas to see out in my retirement years rather than risk keeping a 4+ year old Alfa!
     
  20. davidsrsb

    davidsrsb pfm Member

    This implies that buyers are over-paying and subsidising the lease schemes
     

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