Good contact hire deals?

[wrekka]

Just came across some contract hire deals. Are these good deals? They sound good

1st one is a Audi s5 black edition. Personal contract hire
circa £2800 deposit then £430 a month for 2 years

http://www.contracthireandleasing.com/c ... /17094330/

2nd one New BMW M5
£3700 deposit £580 a month for 2 years

http://www.contracthireandleasing.com/c ... /11530303/

Let me know what people think

Never done contract hire before - is it any good?

[ahoooga]

If you think paying £13K to (in effect) hire a car for 2 years then have to give it back without having anything to show for it , then go for it

However , for £13K you could buy a tidy RS6 ( albeit a C5) , OR a decent sporty saloon , which would be yours to keep for as long as you want it , in fact , for £17-18k , you can get a half tidy used s5 quattro

[Chrishumes]

Yeah then add 4k interest onto the 18k....plus upkeep, and in 3 years it will be worth 10k, so youve paid 12k+ to have a used s5 rather than a new one with no upkeep costs???

Im the same mind, scared of 'renting'....

[HYFR]

Its the same as paying in cash (owning it) and then selling it in 2yrs....it still costs you the same.

The only difference is the interest you will pay.

[Nickyboy]

Difficult to get out of a lease if something happens though. At least if you buy or get a loan you can sell the car.

[wrekka]

I just like the idea of having a new car with no mechanical worries due to having a warranty and then only keeping 2 years at which point i'm usually ready for a change.
My mate got a cracking deal last year on a c63 amg coupe. £2000 down and then £430 per month (although was a business rate) for 2 years.

[RS6MTM]

If you worked out how much you would lose on a new S5 or M5 after 2 years, by buying it outright, it would be a heck of a lot more than £12k - £13k. Also, you have £50k + wrapped up in a depreciating liability. If you change cars regularly, this is the only way to go. If you have the £50k to spare, go invest in in something that will make you money and pay off £500 each month, and use the interest you're making elsewhere to make up the payments.

[Chrishumes]

Look at the m3 deals recently....8k dealer contribution, 6k from you then 0% for 2 years....pcp of approx £500/month. Bargain.,,

2 year old m3's are 35k now, so lost 25k in 2 year!

[wrekka]

Yeah, I think you have got to choose the right deal. I would also like to hear some testimonials of people who actually do, do contract hire

[DuncS3]

I had a B7 RS4, swapped to a brand new M3 on personal lease almost two years ago.

Lease works for me because:

1) I lived in the US where I leased cars, its pretty much the norm over there - so I am 'used to it'
2) I like to change cars - say two years max ownership
3) I want a car with warranty
4) I like big engined cars, which depreciate terribly
5) I get a car allowance from work, so it contributes heavily to my lease
6) I do relatively low mileage

Road tax is also covered - which is handy now its 470 odd each year. My M3 invoice price was 61K - its almost two years old come October, it would retail for about 35k on a dealer forecourt.

[wrekka]

Thanks for that info duncs3. Having looked into it in detail i think you have to really go for the "deal" that is available and not the car you want. I would like the new rs4 but at £1280 a month is out of my reach whereas the new M5 is a lot, lot less. I think for the time being I am going to continue saving a bit more.

[adsgreen]

Iirc with personal contract hire under 25k you can return the car without any penalty after half the payments have been made.

[adsgreen]

Mileage is the killer - 8k on the m5.
Also no options - need to factor those in.

But there's nothing wrong with renting - it all depends on circumstances.
If you change your cars often and dot want any stress then contract hire is pretty useful.
PCP is ok if you want options but buying the car is very very expensive as you are paying interest on the balloon payment through the whole term.

Best thing to do is add up normal cost of ownership and see how it compares.
Normally contract includes tyres which can be a bonus (but make sure you have some say in tyre choice - at least OEM).