BMW 730D - Half Price Contract Hire |
Costing Comparison Table
List Price | £48,150 |
What Car Target Price | £44,715 |
What Car Rating | ***** |
What Car Typical Contract Hire 3 Years 3 + 35 | £915 |
Ferguson Vehicles Contract Hire 2 Years 3 + 23 | £399 (*1) |
What Car 1st Year Depreciation | £16,853 (*2) / £13,418 (*3) |
What Car 2nd Year Depreciation | £4,083 |
First Year Contract Hire | £7,050 (*4) |
Second Year Contract Hire | £5,170 (*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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