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Why executive cars can be cheaper to lease than mainstream rivals

Motor Mistress Blog

BMW M5 Executive Saloon

Sometimes, there are deals that just don’t seem to stack up.

And when I say that, I mean it. Just how is it possible to lease an expensive, premium marque car for the same sort of monthly rental as a mainstream manufacturer’s model?

It certainly, on the face of it, can cause a degree of scepticism in minds of those folks who perhaps haven’t leased before, or don’t “buy into” the concept of leasing as a form of funding.

The reason that executive vehicles are very often as cheap – or cheaper – than their mainstream rivals is very simple.

It’s all about residuals.

In addition, the very competitive deals will often have other forms of financial support behind the scenes to make the prices super-competitive. Depreciation beating, in fact, on many occasions.

Executive cars residual values

The desirability factor has a lot to do with it when you are funding cars. The more sought-after the car, the more the car is likely to sell for when it is time for disposal.

It is for this reason that when buying, it is often better to speculate and buy a better model or trim as in the long run, it will pay dividends.

Of course, the less the car costs, the less £££s you stand to lose so there will always be circa £100 per month deals that a premium marque model can never achieve when it comes to contract hire.

That being said, it is very possible to get a good deal on a Mercedes, BMW or Audi for the same sort of monthly payment as a non-premium marque contender.

Manufacturers will often support leasing deals with additional financial incentives and sometimes there are stock vehicles that attract even more discounts. These deals, when they are offered, represent excellent value for money and often will “beat” depreciation when weighing up on a like-for-like basis.

Working out if you have found a good leasing deal

It is easy to work out if your leasing deal is a “depreciation beater”; CAP’s online Total Cost of Motoring tool will work out the forecast resale value of any new car.

By comparing your total monthly lease costs to what you would stand to lose if you bought that model outright is a pretty simple way to tell if you have a deal that is hard to refuse!

Summary

To get a great business or personal leasing deal it is always best to deal with a reputable supplier like Compass Contract Hire, who will be able to give you advice on the best-value vehicle solutions for your situation.

For more information, call 02392 228070 or click here to request a free of charge call back.