Contract Hire advice - is this a good deal?

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markjay

markjay

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Decided to test the waters... and possibly get an EV.

I am looking at a new VW ID4, to be purchased via the company (VAT-Registered Limited company).

Went into a VW dealership today, and got the following offer (also attached):

P11D value £50,570.00
Initial payment (3 months' payment) of £1,694.76+VAT
Plus 47 payments of £564.92+VAT each

(Maintenance not included)

Any advice please? Any pitfall I should avoid? Is it a good deal? Should I get more quotes?

Thank you in advance.

The Merc is staying, BTW :thumb:
 

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st13phil said:
Doesn't look very competitive - assuming I've picked the same model:

VOLKSWAGEN ID.4 ELECTRIC ESTATE 150kW Life Pro Performance 77kWh 5dr Auto Lease Deals

View the latest VOLKSWAGEN ID.4 ELECTRIC ESTATE 150kW Life Pro Performance 77kWh 5dr Auto leasing deals from Go Green Leasing
www.gogreenleasing.co.uk www.gogreenleasing.co.uk
Click to expand...

Apparently.... there are 4 models coming (replacing the original 'Edition 1'):

Life, 52 kWh
Style, 52 kWh, with reverse camera (and probably some other bits)
Family, 77 kWh, with fixed glass roof
Max, 77 kWh, with HUD, 360° cameras, and electric front seats

The model listed in your link seems to be the Life with the enhanced motor upgrade.

The one I was quoted for was the Max.

Incidentally, for anyone who may be interested, the Life qualifies for the government grant of up to £2,500 (because it is priced at under £35,000).
 
@markjay With respect to contract hire and business contract hire in particular, one has to chase the deal, not the car. If you want a specific car only, you could end up paying way more than you should.

There can be amazing deals that come up (either an allocation of pre-reg new cars that need to be shifted by a certain date) or manufacturer suppport where for a few months, they heavily subsidise a certain vehicle. For example, when the Jaguar i-Pace came out, those who could act fast got an i-Pace for £400 advance payment, and £400 a month for another 18 months. Audi offered some support on their e-Tron at one point too.

The way I tend to compare contract hire quotes (and see if it's a good deal or not) is by looking at the total outlay divided by the P11d value. For 2 year contract hire, anything under 20% is considered a great deal, 20-25% would be a good deal too. A lot of contract hire is expensive at present, especially for EVs (but they know that for companies, the BiK savings are immense)

Given how rapidly EV technology is evolving, I would suggest a 24 month contract hire at this point, rather than a 48 month one. There will be lots more choice of models and battery tech will have advanced in 2 years time too, and hopefully once the chip shortage is gone, a wider selection of deals too. Plus in year 4 of contract hire, you'd have to get an MOT plus the VW warranty ends after 3 years too.

Depending upon servicing etc, with a 24 month deal one can get away with only paying for one annual service, and return the car a month early to avoid having to pay for the 2nd service (yes, some small early return fees, but far less than the cost of a 2nd year service)

Your ID4 quote sounds expensive when I compare it with a quote I got last week for a bottom of the range Volvo XC40 Recharge which has a similar P11d value. Plus Volvo business were offering a free home charging point AND 3 years free servicing and they seemed to infer that if I found the quote too expensive, they will work with dealers to find a way to lower the quote for me!

Volvo business quoted me for 10k miles 36 months vs your 5k miles 48 months for VW ID4 (Yes, the Volvo quote is for 12 months less, but it has 10k miles a year - the 5k miles a year tend to be the quotes which are often the cheapest, so if you got a 10k miles a year quote, I expect it to be quite a bit more. Volvo business did tell me they currently have manufacturer support on the prices. You could contact them with your requirements and see what they deal they can for for 5k miles and how much they are willing to negotiate down to get you to sign)

VW ID4 quote % of P11d
+VAT 55.8% of £50,570
including VAT 67.0% of £50,570

Volvo XC40 Recharge quote % of P11d
+ VAT 36.6% of £50,480
including VAT 44.0% of £50,480

If you're after an EV (of any kind) through the business, then there are good deals on stuff like the Hyundai Ioniq Premium SE
24 month contract hire quote % of P11d
+VAT %15.6% of £32,550
including VAT 18.7% of £32,550

Link to Hyundai Ioniq deal - it's listed on leaseloco (a good site in general to browse deals)

I also find leasing.com to be useful when searching for deals

Some threads on forums to be mindful of as deals for EVs often get posted there too

Speak EV deals thread

PistonHeads Best Lease Deals thread

If you're getting business quotes direct from manufacturers, some of them offer far longer test drives for business users (I've had up to 4 days in the past, delivered and picked up from you) compared to you walking in as a private customer to a dealer and maybe getting 30-60 mins on your own for a test drive.

You might want to sign up to mailing lists for a few leasing brokers too, as they often email offers (where they have an allocation of a handful of cars) and one has to act fast to grab the deal before all the cars are spoken for. Early 2020 one broker had BMW 840i M Sport personal contract hire for 24 months which worked out at £9k total (for a £70k car)

HTH
 
raspy said:
@markjay With respect to contract hire and business contract hire in particular, one has to chase the deal, not the car. If you want a specific car only, you could end up paying way more than you should.

There can be amazing deals that come up (either an allocation of pre-reg new cars that need to be shifted by a certain date) or manufacturer suppport where for a few months, they heavily subsidise a certain vehicle. For example, when the Jaguar i-Pace came out, those who could act fast got an i-Pace for £400 advance payment, and £400 a month for another 18 months. Audi offered some support on their e-Tron at one point too.

The way I tend to compare contract hire quotes (and see if it's a good deal or not) is by looking at the total outlay divided by the P11d value. For 2 year contract hire, anything under 20% is considered a great deal, 20-25% would be a good deal too. A lot of contract hire is expensive at present, especially for EVs (but they know that for companies, the BiK savings are immense)

Given how rapidly EV technology is evolving, I would suggest a 24 month contract hire at this point, rather than a 48 month one. There will be lots more choice of models and battery tech will have advanced in 2 years time too, and hopefully once the chip shortage is gone, a wider selection of deals too. Plus in year 4 of contract hire, you'd have to get an MOT plus the VW warranty ends after 3 years too.

Depending upon servicing etc, with a 24 month deal one can get away with only paying for one annual service, and return the car a month early to avoid having to pay for the 2nd service (yes, some small early return fees, but far less than the cost of a 2nd year service)

Your ID4 quote sounds expensive when I compare it with a quote I got last week for a bottom of the range Volvo XC40 Recharge which has a similar P11d value. Plus Volvo business were offering a free home charging point AND 3 years free servicing and they seemed to infer that if I found the quote too expensive, they will work with dealers to find a way to lower the quote for me!

Volvo business quoted me for 10k miles 36 months vs your 5k miles 48 months for VW ID4 (Yes, the Volvo quote is for 12 months less, but it has 10k miles a year - the 5k miles a year tend to be the quotes which are often the cheapest, so if you got a 10k miles a year quote, I expect it to be quite a bit more. Volvo business did tell me they currently have manufacturer support on the prices. You could contact them with your requirements and see what they deal they can for for 5k miles and how much they are willing to negotiate down to get you to sign)

VW ID4 quote % of P11d
+VAT 55.8% of £50,570
including VAT 67.0% of £50,570

Volvo XC40 Recharge quote % of P11d
+ VAT 36.6% of £50,480
including VAT 44.0% of £50,480

If you're after an EV (of any kind) through the business, then there are good deals on stuff like the Hyundai Ioniq Premium SE
24 month contract hire quote % of P11d
+VAT %15.6% of £32,550
including VAT 18.7% of £32,550

Link to Hyundai Ioniq deal - it's listed on leaseloco (a good site in general to browse deals)

I also find leasing.com to be useful when searching for deals

Some threads on forums to be mindful of as deals for EVs often get posted there too

Speak EV deals thread

PistonHeads Best Lease Deals thread

If you're getting business quotes direct from manufacturers, some of them offer far longer test drives for business users (I've had up to 4 days in the past, delivered and picked up from you) compared to you walking in as a private customer to a dealer and maybe getting 30-60 mins on your own for a test drive.

You might want to sign up to mailing lists for a few leasing brokers too, as they often email offers (where they have an allocation of a handful of cars) and one has to act fast to grab the deal before all the cars are spoken for. Early 2020 one broker had BMW 840i M Sport personal contract hire for 24 months which worked out at £9k total (for a £70k car)

HTH
Click to expand...
Can you elaborate a little?
 
raspy said:
@markjay With respect to contract hire and business contract hire in particular, one has to chase the deal, not the car. If you want a specific car only, you could end up paying way more than you should.

There can be amazing deals that come up (either an allocation of pre-reg new cars that need to be shifted by a certain date) or manufacturer suppport where for a few months, they heavily subsidise a certain vehicle. For example, when the Jaguar i-Pace came out, those who could act fast got an i-Pace for £400 advance payment, and £400 a month for another 18 months. Audi offered some support on their e-Tron at one point too.

The way I tend to compare contract hire quotes (and see if it's a good deal or not) is by looking at the total outlay divided by the P11d value. For 2 year contract hire, anything under 20% is considered a great deal, 20-25% would be a good deal too. A lot of contract hire is expensive at present, especially for EVs (but they know that for companies, the BiK savings are immense)

Given how rapidly EV technology is evolving, I would suggest a 24 month contract hire at this point, rather than a 48 month one. There will be lots more choice of models and battery tech will have advanced in 2 years time too, and hopefully once the chip shortage is gone, a wider selection of deals too. Plus in year 4 of contract hire, you'd have to get an MOT plus the VW warranty ends after 3 years too.

Depending upon servicing etc, with a 24 month deal one can get away with only paying for one annual service, and return the car a month early to avoid having to pay for the 2nd service (yes, some small early return fees, but far less than the cost of a 2nd year service)

Your ID4 quote sounds expensive when I compare it with a quote I got last week for a bottom of the range Volvo XC40 Recharge which has a similar P11d value. Plus Volvo business were offering a free home charging point AND 3 years free servicing and they seemed to infer that if I found the quote too expensive, they will work with dealers to find a way to lower the quote for me!

Volvo business quoted me for 10k miles 36 months vs your 5k miles 48 months for VW ID4 (Yes, the Volvo quote is for 12 months less, but it has 10k miles a year - the 5k miles a year tend to be the quotes which are often the cheapest, so if you got a 10k miles a year quote, I expect it to be quite a bit more. Volvo business did tell me they currently have manufacturer support on the prices. You could contact them with your requirements and see what they deal they can for for 5k miles and how much they are willing to negotiate down to get you to sign)

VW ID4 quote % of P11d
+VAT 55.8% of £50,570
including VAT 67.0% of £50,570

Volvo XC40 Recharge quote % of P11d
+ VAT 36.6% of £50,480
including VAT 44.0% of £50,480

If you're after an EV (of any kind) through the business, then there are good deals on stuff like the Hyundai Ioniq Premium SE
24 month contract hire quote % of P11d
+VAT %15.6% of £32,550
including VAT 18.7% of £32,550

Link to Hyundai Ioniq deal - it's listed on leaseloco (a good site in general to browse deals)

I also find leasing.com to be useful when searching for deals

Some threads on forums to be mindful of as deals for EVs often get posted there too

Speak EV deals thread

PistonHeads Best Lease Deals thread

If you're getting business quotes direct from manufacturers, some of them offer far longer test drives for business users (I've had up to 4 days in the past, delivered and picked up from you) compared to you walking in as a private customer to a dealer and maybe getting 30-60 mins on your own for a test drive.

You might want to sign up to mailing lists for a few leasing brokers too, as they often email offers (where they have an allocation of a handful of cars) and one has to act fast to grab the deal before all the cars are spoken for. Early 2020 one broker had BMW 840i M Sport personal contract hire for 24 months which worked out at £9k total (for a £70k car)

HTH
Click to expand...

Thank you raspy. Some very good points there.
 
raspy said:
@markjay With respect to contract hire and business contract hire in particular, one has to chase the deal, not the car. If you want a specific car only, you could end up paying way more than you should.
Click to expand...


That is the simplest and most succinct advice on leasing I have seen.
 
markjay said:
Decided to test the waters... and possibly get an EV.

I am looking at a new VW ID4, to be purchased via the company (VAT-Registered Limited company).
Click to expand...

There have been aggressive Tesla 3 lease deals from time to time - closer to £300.

Skoda are pushing the Enyaq at the moment - presumably same platform as the VW but cheaper.

I think that I'd be wary of a 4 year lease at that level - given the relative immaturity of the models and market (apart from Tesla).
 
Anyone used - of heard of - these brokers?

Vehicle Leasing UK | Car Company

Get the best personal and business car leasing deals. All leading makes & models available at great prices.
www.vehicleflex.com www.vehicleflex.com

www.vehicleleasingforyou.co.uk

DYMD Limited T/As Vehicle Leasing For You

Nationwide Suppliers of Vans and Cars - DYMD Limited T/As Vehicle Leasing For You
www.vehicleleasingforyou.co.uk www.vehicleleasingforyou.co.uk

They are currently on my shortlist...
 
BTW, I found this deal comparison website to be very useful:

www.leaseloco.com

Search Deals | Comparison Made Easy | LeaseLoco

Find and compare millions of the hottest lease deals ranked by the most powerful value-based search in the market.
www.leaseloco.com www.leaseloco.com

And the deal prices via this site are actually better than the deals advertised on the same brokers' websites directly.
 
If it’s of any use we’ve had three cars from these

Car Leasing, Business & Personal Deals - Select Car Leasing

Best car leasing deals for personal and business customers. Over 19 years' experience. All leading makes and models and 5 star TrustPilot rated service. Challenge us on price! Highly recommended
www.selectcarleasing.co.uk www.selectcarleasing.co.uk

No issues and some good deals over the past several years.
 
kianok said:
If it’s of any use we’ve had three cars from these

Car Leasing, Business & Personal Deals - Select Car Leasing

Best car leasing deals for personal and business customers. Over 19 years' experience. All leading makes and models and 5 star TrustPilot rated service. Challenge us on price! Highly recommended
www.selectcarleasing.co.uk www.selectcarleasing.co.uk

No issues and some good deals over the past several years.
Click to expand...

Thanks, I'll have a look.
 
I have read this thread in awe ,these leasing deals are far above my head,I would not know a good deal even if it bit my backside,I can see there is a wealth of knowledge about these sort of deals,maybe there should be a section where the knowledge is pooled,so that should I :rolleyes: ever want to venture into this minefield I would be sure to get a decent deal.
 
raspy said:
...URL='https://www.leaseloco.com/car-leasing/hyundai/ioniq/100kw-premium-se-38kwh-5dr-auto/13482/1-24-5000-12-0']Link to Hyundai Ioniq deal[/URL] - it's listed on leaseloco (a good site in general to browse deals)...
Click to expand...

I've been looking at Lease Loco as you suggested (see also my post above). And, the Ioniq 5 is currently Mrs MJ's favourite - I may have to cave-in, since the Ioniq 5 is available from stock, while the ID.4 is currently only available as factory-order (been quoted "20 to 24 weeks" as estimated delivery date).
 
Update: The ID.4 is no longer the top choice on my list, I've been advised that the production issues across most auto-makers and the shortage in computer chips could mean that the car will be delayed further, and/or not available with all the options ordered. So I am looking now for cars available from stock. As per my previous post, I am going to look at the IONIQ 5, preferably the Ultimate with the Tech Pack and the Eco Pack. I've got a test drive booked, will report back....
 
Seems OK.....:

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