Depreciation

[steve333]

Depreciation has been a killer for me and my frequent car changing habit. I have just decided to go for Personal Contract Hire on my next car and just ordered it. I have no worries about depreciation or residual values and, with the amazing deal I have got I am driving around in a £67000 car for 'just' £16000 over a two year period. That is less than the headline figure for 1 years depreciation on this particular car. Can't wait until I arrives!

Good luck to you & i hope you enjoy the car but i don't understand how you can say depreciation has been a killer to you after frequently changing cars yet you are going to kiss goodbye to £16k after 2 years in a rented car

 

[peterg1965]

Good luck to you & i hope you enjoy the car but i don't understand how you can say depreciation has been a killer to you after frequently changing cars yet you are going to kiss goodbye to £16k after 2 years in a rented car

It is a lot of money I will most definately admit, and I have changed my cars with frequent regularity and lost a lot of money over the years, particularly on a Porsche C4S Cab. I Suppose the point i am trying to make is that the car I am getting is an expensive machine and by driving it on a lease that is costing £16k over the two years, it is far, far less than the expected depreciation of driving the same car if buying from new, instead of leasing.

I know precisely what I am paying and the uncertainty of depreciation cost is removed completely.

 

[st4]

If I lost 16k in two years on a car I'd worry a lot! Hope you enjoy whatever it is when it arrives.

8 grand a year to thrash around in a 911. Expensive yes, but if you have the money, why not? Its just a very expensive toy

 

[Deleted member 11979]

Indeed, it is all relative, but I would still worry! We pays our money and takes our choice, it would just make my nose bleed.

 

[peterg1965]

I am not getting another 911!

 

[Dryce]

I am not getting another 911!

OK. That's the first off my list of likely suspects now crossed out.

Now the really sad part is that the Panamera was second on the list .....

 

[billywhiz]

And when these cars do get onto the market as nearly-new second hand cars, they further contribute to the depreciation of privately-owned vehicle of same model and year....

Indeed - Nearly all of the programme cars that go back to the manufacturer are then sold at closed dealer auctions - these dealers
( or at least a lot of them do ) then sell the cars as 'ex demo'.....

Well documented across the web people finding out their 'ex demo' car was actually a regular fleet rental car although the dealers provide the hogwash that of course it was a 'Managers car' blah blah

errrr yep - righto.

If it's a new model in the lineup then rental / lease companies are not normally allowed to puchase them as 'Risk' units ( i.e the company buy them and sell them direct without involving the manufacturer & take the hit on depreciation ) as once the first volumes start to hit the secondhand market this then dictates the residual value.

For the benefit of this discussion - nearly all Mercedes are sold to these big fleets as programme cars so Mercedes indeed control the 2nd owner residuals through their dealer network.

Just be wary of the 'Ex Demo' spiel

 

[gIzzE]

I am not getting another 911!

I was speaking to the sales guy in BMW on Monday about the crazy 6 series deals and he did 2 640i's for customers at £329 a month for 10k miles PA over two years.
That is plus vat so £400 a month, and £2400 deposit, but that is just madness.

He pointed out that they were knocking out loads of 116d's at £299 a month, but for £100 a month more you could be in one of these....

It is a new car, just out and £60,000, right now you would be a moron to even consider paying cash for one.

 

[Deleted member 37751]

That 6 series back end looks like a Chrysler whatdoyoucallit..

 

[Peter DLM]

I was speaking to the sales guy in BMW on Monday about the crazy 6 series deals and he did 2 640i's for customers at £329 a month for 10k miles PA over two years.

Link please? I'm getting one if that is the case.

The BMW site makes no mention of them.

 

[Bobby Dazzler]

+1

 

[gIzzE]

The deals were all over the BMW site, have been since New Year and were running till March 31st.

340d at £399+ as well.

However Anneka from Sytner did say yesterday that they were about to be pulled as the 3 months allocation had pretty much been full filled already. So maybe they are gone?

I know some of the guys who ordered were looking at March delivery and yesterday new customers were being told June or July now, so must have taken a fair few orders.

 

[gIzzE]

This broker is offering it at £403 a month for the 640d for Feb....

Bmw 6 Series Coupe 640d SE Auto Contract Hire for Business and Personal Use - UK

 

[peterg1965]

Rumbled....

It's a 640d M Sport in carbon black and ivory leather, just like the picture. A deal that was too good to miss. The lease deal from BMW has now been pulled as it was so popular.

 

[gIzzE]

This broker is offering it at £403 a month for the 640d for Feb....

Bmw 6 Series Coupe 640d SE Auto Contract Hire for Business and Personal Use - UK

Heads up: these 6/7 contract hire deals are about to hit a brick wall.

99% certain: coming to an end (1st Feb).
I can't go into details.

 

[John]

How come private hire prices are higher than business?

 

[Simon_M]

Vat.

 

[raymont]

Business figures are normally quoted ex VAT, Personal numbers include VAT.

Must admit I've been looking at those 640 offers, problem is the car is just not fit for my purposes. Long journeys with 4 people and much luggage.