A friend of mine has a company car which is due for renewal imminently.
He is approaching the lease company with a view to buying the vehicle for himself.
The question is what do the leasing company base their asking price on? Is it the auction reserve value or forecourt price or somewhere in between?
The car is a 2001 Y reg new shape Mondeo 2.0 TDdi LX Estate, metallic red, 80k with Full Ford Service History.
The rear bumper needs paint and there are a couple of other minor dents which will probably pull out.
Can anyone put a fair price on this?
Thanks,
PP
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I'd imagine that a national search on Autotrader will throw up at least half a dozen cars close enough in spec/milegae to give you a clear valuation.
The only I time I looked at this - on my SAAB - the price I was quoted was at least a grand over the market rate. On the other hand I knew every mile the car had driven and that can be worth a lot to you, especially as I had stuck a big mileage on it, but I knew that it was 80%+ long distance/motorway miles.
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One step ahead of you there and still none the wiser, equivalent vehicles on Auto Trader at £5995 yet I've read of £4000 at auction, difficult to price.
I'm sure HJ will be along shortly with a more accurate expectation.
PP
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Going by your description, £4400 at auction plus or minus £200-£300 depending on where and when. (An indemnity of around £160
on top of that to factor in). You can compare this to the price quoted although knowing the car does help and should be worth a few extra pounds.
Most leasing companys chose the auction route for disposal. If you tell me the leasing company and your area I can probably tell you where it will end up should he not buy it first.
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Sorry - can't really help with a valuation of the car you're referring to. However, the only suggestion I can make is that the first price quoted by the lease company may be negotiable. I was in the same situation as your mate a few years back and managed to save about a grand from the first price given, after a bit of gentle haggling.
My own (completely untested) theory is that the lease co. may prefer to sell it to your mate even at the expected auction value. By doing this they're not incurring the usual collection and disposal costs associated with the car at the end of the normal lease period.
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I have two points of experience from our leasing company.
1/ Each car has an individual record. Its lease costs and profit is based an an assumption of a resale value and its purchase price
at the time of purchase. (yes ok along with maint, tax etc)
Our leasing company would sell to the user but would not budge from this magical resale value. (In two cases this was very close to Glasses trade)
2/ My last two fleet cars went straight to auction from my hands (I checked with the delivery driver and saw the paperwork)
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many of the leasing companies wouldn't want the work involved & (potential) come-backs selling it to him directly. They may give an indication as to which auction centre would sell it, though.
Reserve prices are quite often based on a % of Cap trade guide, average. 80% is not unusual, then they can claim to have made an 'extra' profit, on their predicted, end of life residuals.
Your Parkers trade price would be a fairish comparison, to Cap. Mileage adjusted, of course.
VB
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