BMW Contract Hire (Leasing)

[Skrambles]

I'm about to get rid of my old 5-seater x5 to get a new 7 seater one. As the value of these cars falls off a cliff, I'm not interested in long term ownership or putting a large sum of capital towards the purchase, whether as deposit or balloon, and am thinking about leasing one instead.

What are the pros and cons of "buying" the car this way? Also, are there any decent alternatives to getting the car financed with BMW?

[anonymous-user]

As the value of these cars falls off a cliff

I'd be looking at a lightly used one that has taken a big hit on depreciation already

the bmw offer http://www.bmw.co.uk/bmwuk/pricesandspecifications... doesn't look that attractive to me

[cheadle hulme]

£10k per year, seems a lot to me too. Lightly used all the way unless the dealer is able to get more discount from BMW HQ.

[R26Andy]

Look for a PCP deal on a 2yr old model. Its likley that your total borrowing will be much less than on a new car so interest charges will be lower, depreciation will be lower, GFV as a % of money borrowed will be higher and hence you monthly payments will be MUCH lower.

EDIT: Okay, just looked up how much these things depreciate in years 3,4 & 5 and they just keep plummeting so used PCP is just as bad as buying new.

Edited by R26Andy on Wednesday 19th January 20:09

[dele]

I dont see why anyone would want to lease these days unless its through a business

I was going to lease a new A5 until i saw i could get a 2 year old M3 from BMW for the same price on finance

[Skrambles]

Thanks - I'll have to ask the dealer for the Contract Hire (lease), rather than Select Hire (balloon), monthly payments, but I'd expect them to be lower and not to involve a deposit.

I'm not sure about the used route - I've not been impressed by the AUC standards and can do without the hassle and expense of frequent returns to the dealer (a reason for me getting rid of my present car).