Long Term Car Leasing

[matt_knowles]

As per the title.

Looking at options to replace the family motor. Happy to buy outright, but see the benefits of leasing too.

From my early days of looking about, it seems the options are poor but perhaps I'm not looking hard enough?

So far I have looked at Hertz, Diamond Lease and Carlease all of which are pretty rubbish.

Example Hetz - Toyota Fortuner (basic spec), 4 yr (20,000km), 8000dhs Deposit and 2000dhs a month. That's a fair amount of dosh for a pretty dull motor. https://www.hertz.ae/p/rental-car/car-lease

Am I missing something, or is this as good as it gets for leasing? I asked a very similar question a couple of years ago and I had hoped the game had moved on, but it seems not.

Cheers

[Paracetamol]

The main thing at the moment is that its all but impossible to sell a used car unless its super cheap...so if this takes the risk of early termination away then its worth it.

I know Mercedes were trying to put some good deals together. I think it was through Sixt.

[XB70]

Interesting. There have been various used cars that I have been looking at all and seem to go quickly. Not super cheap but cheaper than others being advertised.

Missed out on a few Sequoias now. That being said, there are some people in la la land on what they want for a used car with more than 100K (does not mean kiss of death when rolls over to six digits but rather when you see what else is being advertised)

[Paracetamol]

XB70 said:

Interesting. There have been various used cars that I have been looking at all and seem to go quickly. Not super cheap but cheaper than others being advertised.

Missed out on a few Sequoias now. That being said, there are some people in la la land on what they want for a used car with more than 100K (does not mean kiss of death when rolls over to six digits but rather when you see what else is being advertised)

I just sold my wife's 2014 Toreag SEL with 70k kms. At 82k I had to price it 10k below the cheapest equivalent car and 25k below LA LA land prices. Even then I was getting stupid last price calls and offers of 65k by text...

I tried selling my '14 Cayenne S with 35k kms. Absolutely no takers..just tonnes of timewasters. Traders are crying at the moment as are dealers. Only thing selling seems to be very big cars like 918 Porsches etc

[XB70]

Paracetamol said:

I just sold my wife's 2014 Toreag SEL with 70k kms. At 82k I had to price it 10k below the cheapest equivalent car and 25k below LA LA land prices. Even then I was getting stupid last price calls and offers of 65k by text...

I tried selling my '14 Cayenne S with 35k kms. Absolutely no takers..just tonnes of timewasters. Traders are crying at the moment as are dealers. Only thing selling seems to be very big cars like 918 Porsches etc

Someone needs to tell one or two dealerships on SZR that...and ones where the brands really do need to get market take up as they are competing with long established players in the luxury end. utterly uninterested in trying to sell a car (and not ones that are walking out the door!)

[CRB14]

I'm in a similar situation. Really want to buy something but there's always that risk of needing to sell quickly. On the flip side lease deals are pretty crap for anything moderately interesting even on a long term basis.

I do get a discount through my employer for certain brands which helps though. I think it entirely depends on what you want to buy that will define how quick it could sell (and for what value). I still think big stuff sells. Landcruisers, Patrols and I would say some american stuff will sell all day long as they seem really popular. Anything with desert capabilities outside of this list will stand a better chance also.

If you want to buy german I think there's always the risk that you restrict prospective buyers basically to just europeans who would (i guess) more often than not want something newer and in warranty.

I've only just come back after a hiatus but this time around it's for the long term so I'm presently in the 'sod it buy new' frame of mind.

[stuckmojo]

Lease deals are awful around here. I did look when I moved 15 months ago and it just didn't make any sense.

If one doesn't mind buy second hand and spend time sourcing the right car, amazing value can be found at any level of the market (unless you want a Defender )

Deals on new cars are quite good too.

[matt_knowles]

Cheers lads!

I'm definitely coming to the same conclusion as last time and will likely dip into the buyers market again.

Thanks

[matt_knowles]

Cheers lads!

I'm definitely coming to the same conclusion as last time and will likely dip into the buyers market again.

Thanks

[Fats25]

Matt - I have a contact through a smaller rental company. He does long term rentals rather than leases I think.

I don't know the details of his business model, but another mate of mine "leases" some Kia thing for 2 years, and he seems to be happy that it fits his requirements. Another has a long term rental for some Nissan/Toyota small car. I'm not sure how limited the choice of vehicle is, as he mostly has just Japanese/Korean vehicles.

Let me know if you want me to put you in touch.

[matt_knowles]

Fats25 said:

Matt - I have a contact through a smaller rental company. He does long term rentals rather than leases I think.

I don't know the details of his business model, but another mate of mine "leases" some Kia thing for 2 years, and he seems to be happy that it fits his requirements. Another has a long term rental for some Nissan/Toyota small car. I'm not sure how limited the choice of vehicle is, as he mostly has just Japanese/Korean vehicles.

Let me know if you want me to put you in touch.

Cheers Chris, that'll be great thanks.

Its only a motor for the Mrs to bumble round in with my son but ideally needs to be medium SUV size. We looked at Hyundai Santa Fe's and the like, which actually aren't so bad. If I was buying it wouldn't be my pick, but as a rental I wouldn't be too fussed.

Matt

[Rich_AR]

matt_knowles said:

Its only a motor for the Mrs to bumble round in with my son but ideally needs to be medium SUV size. We looked at Hyundai Santa Fe's and the like, which actually aren't so bad. If I was buying it wouldn't be my pick, but as a rental I wouldn't be too fussed.

Matt

DUSTER.

[matt_knowles]

Rich_AR said:

DUSTER.

Wouldn't rule it out now but it's a bit agricultural. Was PH review of them not that long ago, and seemed to be liked by many.

Had a look at the new Koleos too. Much better looking than the old model and cheap as chips new. Would prefer something a little more interesting though!

[After_Shock]

Lease deals are based purely around residual values, as the arse has well and truly fallen out of the used car market no underwriters are willing to put big values on anything residually.

Hence leases per month wont ever be cheap whilst this current market trend continues, and even if it does improve it would take a long time of massively improved market prices for such companies to even start to consider improving the residuals. May get the odd deal on specific models that the dealers desperately need to shift and get support from the manufacturers but in general expect the same for a long period of time.

Buy privately as mentioned take the risk of selling it and losing the money, lease it the risk calculation is already done by the renter and your paying the loss per month, only advantage you know the loss and have a contract in writing for it.

[Onetrackmind]

Do we know why the arse has fallen out of the used car market?

[Fats25]

Onetrackmind said:

Do we know why the arse has fallen out of the used car market?

And has it really?

I have not tried to sell a car myself, but I know lots of other people that have, and they have sold quickly.

[XB70]

Fats25 said:

And has it really?

I have not tried to sell a car myself, but I know lots of other people that have, and they have sold quickly.

I have been looking at used cars of various types and generally all are either sold or sale pending (and then I get the email/SMS that the sale has gone through and car gone).

[After_Shock]

Onetrackmind said:

Do we know why the arse has fallen out of the used car market?

Several factors really, over supply is a main contributor (obviously doesn't apply to all makes and models as some stuff is still in demand) on some of the main stream popular cars here.

2014/15 saw unreal growth in sales of cars and the 2015/2016 ordering of stock for dealers saw the exact same growth in numbers, in reality it dropped off a cliff in terms of growth but by time the orders for new shipments got amended/cancelled the big boys already had multiple thousands of cars in stock or already on ships they simply didn't need.

Due to over stocking the new car offers have been ridiculous on some cars and some of those offers are continuing, so Mr whoever paid 150k for his car a year ago can get the same one now new for 115k (very rough example) has a detrimental kick in the teeth on the used values of the people who paid higher amounts, especially if they financed 100% of said car they are now welded into it.

Currencies weakening against the dollar has slowed the influx of cash coming into the country to buy up the over supply in the used market, Hyundai/Kia have slowed down unbelievably in the last year due to export markets drying up. However some dollar based countries have started buying again which is helping recently, Angola for example.

Iran is also a major exporter of cars from the UAE but several political factors seem to be going on again between the two countries and Iran has simply closed its borders to several cars and also stopping anything that's made in USA from being imported, example the X4 which BMW here has done incredibly well with but now its game over they cant export them anymore.

Some new models are however doing well, and some dealers are doing well on new stuff with crazy offers but in general some dealers are closing sites due to demand dropping, I believe the official figure for 2016 was the market shrunk 34% compared to 2015 but I cant find the document which said that at the moment, was definitely in the 30% range though.

If you own an Porsche with a GT badge on it though lifes still all good, and ultimately if the used car your selling is actually straight and in great condition buyers will still buy, they are just being more fussy now, as an over supply of badly repaired st boxes are being offered they are being ignored by potential buyers. Simply you wait a week and a decent one comes along. Gone are the days of selling a clocked 2006 car which has had more paint than a Dulux factory for only 2000dhs less than a minter.

[Fats25]

After_Shock said:

Gone are the days of selling a clocked 2006 car which has had more paint than a Dulux factory for only 2000dhs less than a minter.

That's good news though isn't it?!

I'm happy with this market.

[Dusty964]

matt_knowles said:

Rich_AR said:

DUSTER.

Wouldn't rule it out now but it's a bit agricultural. Was PH review of them not that long ago, and seemed to be liked by many.

Had a look at the new Koleos too. Much better looking than the old model and cheap as chips new. Would prefer something a little more interesting though!

We looked at a Duster for the Mrs.
Ended with a Captur. To be honest, for the money, the warranty, the service package, spec and a guaranteed buy back there isnt much to dislike.