hi All,
in may 2011 I bought a year old 325d m sport coupe for £31k from a main dealer, and want to change to a RRS. Checking the prices of 2 year old 325d's I think I may be looking at up to 10k in depreciation. This is not something I want to repeat lol

I have always wanted a RRS, but I would also like to go to a Nissan GTR at some stage in the next yr or 2.
I have 15k in cash to add to the BMW as a trade in if needed,however, if I think I may see 10k loss in a year then I would consider a 12 month business contract hire.

Has anyone used this short term option? Any experiences of prices? 325d m sport coupe looking to change to RRS

Hi and welcome to the site Your two options are both great motors but worlds apart, but if your not wanting to repeat your depreciation loss then look elsewhere for a motor because with your two choices you are going to lose ££££'s And if you lease on a short term ie 12 months then you will still lose loads of ££££'s due to the deposit then the high monthly payments because of the short term, you could pick up a good demo or a vehicle thats been registered for 6 months or so to try and reduce you loss as we all know they always lose a shed load of money the day we leave the forecourt either way keep us all posted on what you decide

cash and buy on the right side of the spread

you'll still lose money, but that's part of the fun

I bought a 57 plate in 2009 (when the world was ending) that at one point was worth £8k MORE than I had paid. Suffice to say it's a feat I have never been able to repeat  ============
2010 TDV8 HSE - ooo laa laaaaaaaaa
2007 TDV8 HSE - superb car and very reliable
============
2012 - dearly departed, sadly missed.. to return in late 2013 with a new TDV8!

Its a minefield I'm afraid

3 years ago bought a 2007 FL1 and recently sold it - £3k depreciation - £1k pa so good result

Same time bought a new RRS and recently considered changing - looking at £21k depreciation - £7k pa so not so good

Bought a new mini this year because they supposedly don't lose money - only had it 6 months and already looking at £7k depreciation  Wanted a Series 2 LR since childhood but previously owned MY16 Disco Sport HSE TD4 Auto, MY13 RR Sport Black Edition TDV6 Auto, MY10 RR Sport HSE TDV6 Auto, 2007 Freelander 1 Freestyle TD4 Soft Top, 2009 Freelander 2 GS TD4 Auto, 2007 Freelander 2 GS TD4, 2004 Disco 2 Metropolis Auto, 2002 Disco 2 GS, 2000 Freelander 1 SE TD4 SW

Still hoping for a S2 one day!

For contract hire I have been thinking that £600-£700 per month would be about right, but I have just had a price of a LR dealer and it's WAY above that.

Dumb question I know, but on a 2010 model how much depreciation might I be looking at per year? 325d m sport coupe looking to change to RRS

I was recently advised by stealers £1000 a month depreciation at the moment on MY10 RRS  Wanted a Series 2 LR since childhood but previously owned MY16 Disco Sport HSE TD4 Auto, MY13 RR Sport Black Edition TDV6 Auto, MY10 RR Sport HSE TDV6 Auto, 2007 Freelander 1 Freestyle TD4 Soft Top, 2009 Freelander 2 GS TD4 Auto, 2007 Freelander 2 GS TD4, 2004 Disco 2 Metropolis Auto, 2002 Disco 2 GS, 2000 Freelander 1 SE TD4 SW

Still hoping for a S2 one day!

I pay just over £900 per month on mine which is on contract hire including all servicing and parts including tyres so given the current depreciation quite a good deal I think.
Probably best deal would be to get a V8 HST for about £30-£35 K and if you don't do much mileage shouldn't drop too much in 12 months. MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

contract hire is the most expensive route on average. The business model is quite simple.

Buy a car, estimate its depreciation , air on the side of caution, add a premium for your services and divide by the monthly payments.

So unless the estimators's get it wrong total cost of ownership is always greater than a straight purchase.

We always use contract hire for our company cars very simply that we have a fixed monthly cost & do not have to find large deposits if we purchased them.
CH is not cheap as X5 says but sometimes a lot of the manufacturers want to get pre reg cars into the market place so offer cheap deals - we currently have 5 mercs in our fleet at £300 pm as cheap 24 month deal.

Sadly with RRS you are not going to get that, sales are up 40% year on year so they do not have to try too hard to sell.

If buying a £58k car after 3 years you are looking at retail circa £36k probably trade £33k so in depreciation alone you are going to have lost £700 per month, plus financing servicing etc, so in reality cost not far off £900 per month.

The more you spend the more you lose ! Paul

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Swift Conqueror 645
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x5pea wrote:

contract hire is the most expensive route on average. The business model is quite simple.

Buy a car, estimate its depreciation , air on the side of caution, add a premium for your services and divide by the monthly payments.

So unless the estimators's get it wrong total cost of ownership is always greater than a straight purchase.

Plus don't forget the initial deposit which is usually 3 payments.

ChrisP wrote:

I really don't agree with that,having done a huge amount of research over the years with advice from a really good accountant and taking in all the factors such as servicing,parts,tyres,road tax and depreciation the deals we have done over the past 5 years have been much better than outright purchase or finance agreements.
We pay a fixed monthly sum which means we know exactly what it's going to cost us over three years,no surprises on servicing,parts not covered under warranty or tyres,why would you not go for that ?
Just bear in mind how much discount the big players like Lex can negotiate on the car,servicing and tyres ,that's how they make their margin,economies of scale.

Its simple maths, leasing companies are businesses, if it wasnt a viable business then they wouldnt operate. They make a profit on your payment simple!

£900 a month is a good deal thats 32,400 over 36 months (exc any initial deposits)..... think you wanna change accountants.

pjb wrote:

We always use contract hire for our company cars very simply that we have a fixed monthly cost & do not have to find large deposits if we purchased them.
CH is not cheap as X5 says but sometimes a lot of the manufacturers want to get pre reg cars into the market place so offer cheap deals - we currently have 5 mercs in our fleet at £300 pm as cheap 24 month deal.

Sadly with RRS you are not going to get that, sales are up 40% year on year so they do not have to try too hard to sell.

If buying a £58k car after 3 years you are looking at retail circa £36k probably trade £33k so in depreciation alone you are going to have lost £700 per month, plus financing servicing etc, so in reality cost not far off £900 per month.

The more you spend the more you lose !

I assumed, maybe wrongly that the OP was looking at pers CH. From a business perspective i can see where it may look atractive, however you cant beat a straight purchase. We used to lease the Vans with a TCO around 10k per 3 years under the advise from the accountant after the first year that was bin'd and we now purchase direct from the local van centre as massive discounts and TCO is near zero. Granted not everyone can get to these kind of figures but the only party who benefits from CH in 99% of cases is the leasing company

Still don't agree and don't think having a pop is on to be honest, just the way I prefer to do it having tried just about every option before.

What is the total purchase price over 3 years on £53K at list including finance deal minus the residual value in 3 years with about 60K miles ?
Just a rough guess would be say ~ £56,000 - £35,000 = £21,000 / 3 = £11,666 p/a = £972/month.
On top of that say 1 service every year at £450 x 3 = £1350
1 set of tyres every year after 1st set e.g. £800 x 2 = £1600
Non warranty wearable parts say £100 x 3 = £300
RFL say £450 x 2 = £900
Total for running costs = £4150 /36 = £115/month

So very approximate cost of buying and running oneself is £972 + £115 = £1087 inc VAT

Total cost I pay is £1153.54/month inc VAT so not too far adrift but with the advantage of absolutely no hassle buying and selling and fixed cost especially in the 3rd year which I haven't included for in the buy option if anything big goes bang. MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

Fair point Chris, but i wouldn't like to think i'd payed all that money out over the 3 years for someone to just drive it away and have nothing to show for it. If i'm paying all that for a motor i want to own it, i guess its different if your company is paying for it, but i just couldn't do it. I guess i'm lucky enough to buy mine outright.