BMW 730D - The Best Contract Hire Deal
As at 1st March 2006, the best value contract hire car deal in the UK, in our opinion, is probably a BMW 730D for 399 per month on 2 year contract 10,000 miles per annum from Ferguson Vehicles of Blackpool.
Obviously, this will not appeal to the motorist on a tight budget, or looking for a small, cheap, economical car, but for luxury motoring at a ridiculously low cost, it can't be beaten.
It's such a good deal, we ordered one, and wished we could find an excuse to have two!

BMW 730D
BMW 730D - Half Price Contract Hire

Costing Comparison Table
List Price48,150
What Car Target Price44,715
What Car Rating*****
What Car Typical Contract Hire 3 Years 3 + 35915
Ferguson Vehicles Contract Hire 2 Years 3 + 23399 (*1)
What Car 1st Year Depreciation16,853 (*2) / 13,418 (*3)
What Car 2nd Year Depreciation4,083
First Year Contract Hire7,050 (*4)
Second Year Contract Hire5,170 (*5)

Notes
*1 = Excludes VAT
*2 = From list price
*3 = From What Car target price
*4 = Includes 15 payments plus VAT = 15 x 400 x 1.175
*5 = Includes 11 payments plus VAT = 11 x 400 x 1.175

Conclusion
If you can afford the rental, and you like the car, go and get one (or two!)
The total contract hire cost for the entire two year period is less than the first year depreciation, even if you managed to get 3,435 discount for buying new. This also assumes you cannot reclaim any of the VAT, and most companies can reclaim half, and makes no allowance for the financing cost. With any sensible interest cost included, the leasing deal works out at half the price, or less, compared with purchase and ownership.

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