Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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Bulk purchasing and options is how they make their money.
Lotus Elise 111R
Impreza WRX STi
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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The leasing deal doesn't make sense to me, £17k car, costs me £6-7k for 3yrs and 45,000miles.
After 3yrs that car isn't worth £10k, you can buy a year old car with 10,000miles on it for £10k-£11k
They must buy them very cheap
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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I imagine the leasing companies get incentives from the manufacturer too.
Lotus Elise 111R
Impreza WRX STi
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Steve
Premium Member
Registered: 30th Mar 02
Location: Worcestershire Drives: Defender
User status: Offline
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quote:
Originally posted by Kyle T
Bulk purchasing and options is how they make their money.
So they still making money on the depreciation because they are buying the cars cheaper, tom_simes thinks they are not because he is comparing it all to list prices
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taylorboosh
Member
Registered: 3rd Apr 07
User status: Offline
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The cars will be impecably maintained so will re sale pretty good tbh
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by Steve
quote:
Originally posted by Kyle T
Bulk purchasing and options is how they make their money.
So they still making money on the depreciation because they are buying the cars cheaper, tom_simes thinks they are not because he is comparing it all to list prices
Yes but to be fair to Tom, he's comparing it against the retail price that we would pay on the forecourt.... so leasing can be cheaper than the depreciation as far as us punters are concerned.
I really don't think the leas companies make much from each car, finance people make their money from interest, manufacturer make money from selling the car and the lease company pickup the odd bit of admin fee, documentation fee and whatever value is left in the car afterwards.
Lotus Elise 111R
Impreza WRX STi
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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I think thats the key, they don't make much money, maybe only a few hundred pounds on some cars
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by 3CorsaMeal
I think thats the key, they don't make much money, maybe only a few hundred pounds on some cars
That's my thinking, the lease companies I've dealt with have always had the "company director" talking to me about whether I want heated seats or adaptive cruise, so I gather they're fairly small outfits 
Lotus Elise 111R
Impreza WRX STi
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by taylorboosh
The cars will be impecably maintained so will re sale pretty good tbh
Lease cars are thrashed to near death be surprised if the suspension doesn't need replacing at the end of the term.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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quote:
Originally posted by Ben G
quote:
Originally posted by taylorboosh
The cars will be impecably maintained so will re sale pretty good tbh
Lease cars are thrashed to near death be surprised if the suspension doesn't need replacing at the end of the term.
A vast majority of them have had odometers which were faulty and have require mileage correction too.... 
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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''10,000'' miles and the drivers seat is shagged
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Just bought a 2016 Zetec S 140ps in panther black. Get it in a week. 11,000miles on it already. So well used in 7 months. I'll probably sell it at around 60,000miles.
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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Good news m9
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Any good cruises to attend? Might drive past colin mcraes house to let them know I'm still thinking of him
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tom_simes
Show Staff
Organiser: South Wales
Premium Member
Registered: 12th Jan 05
Location: Undy, Newport Drives: Skoda Octavia vRS estate
User status: Offline
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quote:
Originally posted by Kyle T
quote:
Originally posted by Steve
quote:
Originally posted by Kyle T
Bulk purchasing and options is how they make their money.
So they still making money on the depreciation because they are buying the cars cheaper, tom_simes thinks they are not because he is comparing it all to list prices
Yes but to be fair to Tom, he's comparing it against the retail price that we would pay on the forecourt.... so leasing can be cheaper than the depreciation as far as us punters are concerned.
Steve, I've never said that the lease company doesn't make money, I do understand how business works.
However, leasing can still be a cheaper option for Joe public, as Kyle has said above. Use the example Jim has put above. The car retails at £17k book price, and it costs just under £7k to lease for 3 years. Even if you can get a great deal on the purchase and get it for £14k, that still means it needs to be worth more than £7k after 3 years and 45,000 miles, otherwise leasing is cheaper than depreciation (for the first 3 years at least).
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tom_simes
Show Staff
Organiser: South Wales
Premium Member
Registered: 12th Jan 05
Location: Undy, Newport Drives: Skoda Octavia vRS estate
User status: Offline
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quote:
Originally posted by Steve
quote:
Originally posted by tom_simes
quote:
Originally posted by Steve
quote:
Originally posted by tom_simes
I'd personally be amazed if you owned a car and it lost less than that over the 3 years in depreciation.
How are the lease companies making any money if they are not making profit on the depreciation?
Why does that matter if it's cheaper to lease? I know I don't give a shit how they make money, it just worked out cheaper for me in my current car.
You dont need to care, you just need to realise they do make money else they wouldnt exist, and the only way they can make money is to make it back on the depreciation profit.
If you think you are leasing a car for less than depreciation, you are mistaken
Please explain how this relates to your last sentence:
http://www.pistonheads.com/gassing/topic.asp?t=1565896
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taylorboosh
Member
Registered: 3rd Apr 07
User status: Offline
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I never thought 3cm would buy such a shit car... always admired that he liked a retro car
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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It's ideal for me at the moment. Can't recall the last time i went over 80mph. Still leaves me money in the bank, and won't cost much money in fuel, tax, insurance or repairs. Everyone should get one.
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Baskey
Member
Registered: 31st May 06
User status: Offline
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If that's the criteria should have bought a corsa b 1.2 8v
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Got audi all ready to trade in. Removed egr delete kit and a few other bits like wind deflectors etc.
Looking forward to fiesta now. I let ford valet it so not sure how it'll be, maybe a bit swirly. Will either machine polish it myself or pay a detailer to do it. It's going to be filthy within a week 
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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It will be shit
It's not new, so fortunately you won't have to deal with sticker residue left on the windows and alloys.
Don't worry, I'll be starting as a Valeter in the new year, so quality should improve 
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Picked it up today
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Looks alright
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Better chassis than a golf r as well.
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Beat a Peugeot 308 SW Active 1.6L BlueHDi earlier.
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