Leasing

carrollf

I am looking to find the best way to lease a new/2 year old BMW in Ireland. Doesn't seem to be too many options to do this as a private individual (everything seems to be focused on company fleets). Anyone know of anywhere offering this?

R.O.R

carrollf wrote: »

I am looking to find the best way to lease a new/2 year old BMW in Ireland. Doesn't seem to be too many options to do this as a private individual (everything seems to be focused on company fleets). Anyone know of anywhere offering this?

BMW dealers are the only way to go. They are currently offering some very low monthly payments on the new 3 series, but I don't know the ins and outs of the agreement.

You won't be able to lease a used vehicle (VAT implications for the lease company), and I don't know any companies in Ireland who are doing private leases.

knifey_spoonie

The closest thing you will get to this is PCP financing, BMW are offering this at the minute. You finance the vehicle for 3 years, BMW will place a minimum future value on your car based on the mileage you do. After 3 years you have the option to hand the car back as long as it meets the wear and tear policy.

Just keep in mind this will only work if you are not doing huge mileage. Also with BMW you have the option of buying a service pack which will cover your servicing costs. Its as close as a private individual will come to leasing.

GavMan

One question I've had about these PCP deals that I can't seem to get an answer to (online) is, if you put your deposit down, take the car, follow the payment plan and mileage, wear and tear, etc T&C's and want to take a new lease on a new car, does the GFV of the first car in anyway cover the deposit on the new car? Or do you have to stump up another 10K for the deposit?

knifey_spoonie

No GFV doesnt cover any deposit, In essence the GFV figure has nothing to do with you the hirer. It is guaranteed by the manufacturer/finance house/dealer. Its like a balloon payment but the hirer has no responsibility to pay it.

If the residuals are somewhat okay, you may have equity in the vehicle after the 36 months, this can be then used to pay a deposit on a new vehicle. The ideal PCP should have a low deposit.

Heres and example of how you may have equity.

After 3 years a car has a GFV of €5500, The trade price of the vehicle(what a garage is willing to buy the vehicle for) is €7000. You now have €1500 equity in the car. This is because you have the option of buying the vehicle for the GFV and selling/trading for the trade value. So you now have €1500 equity.

The reason why a smaller deposit is better, as follows

Vehicle € 15000
Deposit € 1500
GFV € 6000

You have monthly repayments of €300, at 36 months the car has a trade value of €7250 you now have €1250 equity. So now all you have to do is come up with €250 and your into a new car once again(as long as all things stay similar)

Example of large deposit

Vehicle € 15000
Deposit € 7000
GFV € 6000

You have monthly repayments of €200, at 36 months the car has a trade value of €7250 you now have €1250 equity. So now all you have to do is come up with €5750 to stay with similar payments.

These figure are rounded, but are similar to figures i have worked out recently.

GavMan

Makes sense, knifey.

Thanks

Blazer

Audi seem to do it better..
Basically you pay a set amount each month and at the end of 4 years either pay the lump sum or return for a new car.
Below is the business plan but I can't seem to find the normal consumer one which is the one I was talking about.

ah here we go..

http://www.audi.ie/ie_partner/p_00124/en_home/finance_offers/Contract_Hire/A4_Contract_Hire.html#source=/ie_partner/p_00124/en_home/finance_offers/Financial_Products/Personal_Contract_Plan.html&container=page


http://www.audi.ie/ie_partner/p_00124/en_home/finance_offers/Contract_Hire.html