I have been asked by someone to help sort a 'new' car. The guy concerned has seen this website (Motordepot Supermarket):
www.motordepot.co.uk/
They offer 'Flexidrive' personal leasing on USED cars. He's much attracted to this and has asked my opinion as to whether it is a good idea or not. I know nothing about it, but have told him I will make enquiries.
I freely admit to knowing very little about leasing and PCP etc., but the 'Flexidrive' rental on 1 year old cars do look quite attractive.
Has anyone got experience of these rental schemes? I assume that the renter will have to pay for RFL and standard servicing - but what about repairs? Since the car will go out of warranty during a 3 year rental, who picks up the tab if the engine goes pop or the car needs a new DMF? I assume since the renter does not 'own' the car that the company will be liable for these costs and provide a replacement car whilst the repairs are done??
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>>> FlexiDrive is the new personal lease product from Motor Depot
Simply select the car you want at a rental that is affordable to you to drive the car for the term of the agreement, enjoying fixed low monthly repayments.
No required down payment
Affordable low monthly rentals
Vast range of new and nearly new cars to choose from
A great way to keep changing your car
At the end of the agreement simply return your car to motor depot, settle the agreement, and select another car.
>>>
That's ALL they say about Flexidrive, vague or what? What's there to settle at the end of a rental agreement?
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What's there to settle at the end of a rental agreement?
Excess mileage and damage? Damage is where the arguments occur with leased cars.
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I doesn't look like a simple lease agreement. For example, a 05/55 TDCi Focus is selling at £8195. 36 payments of approx £150 = £5400. There is then a final payment due of £5500 ish (I forget the accurate numbers).
So, they assume in three years that an already two year old car will depreciate by less then 35%. Don't used values plumment come their fifth birthday?
I haven't checked, but I suspect the initial price is a little high as well.
DB
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DieselBoy
I think you are looking at the wrong thing. I think Flexidrive has not final payment, its just a monthly rental period and then you hand the vehicle back - nothing more to pay???
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Usually a pcp or lease deal:
you pay servicing
you pay repairs
you pay for damages
you pay for excess mileage and "not fair and wear" at end of lease
you pay for insurance (will need gap insurance)
you dont pay RFL.
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< Ulla>
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One useful little thing on their site I spotted, that I've not seen before.
www.freecarvaluations.co.uk
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Sorry about reposting - just had a further delve into their site and picked one of their cars and got the following quote for "flexidrive"
Total price 15,695 (showroom price?)
Deposit 0
Finance term (months) 36
Monthly Payment 250.75
Final payment 11,200
Mileage 10,000
So, caclulator out. 36 x 250.75 = 9027 final payment = 11,200 so total is 20,227
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Is the final payment a GFV on termination or does the punter owe the final payment 'come what may'.Makes a difference to the whole term costings.
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I believe that they can hand the car back and not pay the final payment.
Blue
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If that is the case then it's a very good deal - I'd quite fancy a £112 a month Vectra for instance.
However, I'm not convinced that they can - they'd effectively be buying back a 4 1/2 year old, 60k mile Vectra for £5k which would trade at £3k or thereabouts.
More likely they aim to tie you into a longer finance deal to settle the balance (£5k at £112/month would be another five years!) because unless you can get really top private money for the car you're going to be in negative equity.
Look at their PCP for comparison - £1k deposit and £12 a month more over three years - so if you can hand the car back in lieu of the final payment with FlexiDrive then either the company, or their PCP customers, are mugs.
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