We take a look at the best – and worst – cars by category and explore why fixed-cost motoring can make a lot of sense for individuals and SMEs
Of course, we are advocates of leasing here at www.vehicleleasingadvice.co.uk.
However, if you are familiar with my articles you will know that I don’t recommend leasing for everyone as circumstances sometimes dictate that ownership works better than contract hire.
Growing Popularity of PCP
In addition, PCP is growing in popularity all the time; mainly because – if a competitive deal is secured via a company like Compass Contract Hire Limited – it offers individuals the choice of buying it or walking away. Essentially, it is a “risk free” contract that could still result in equity at the end of the contract.
For SMEs, Contract Hire is still a very popular method of funding their fleets – however small or large – for a number of reasons (see our Contract Hire Guide for more information). Company cars are chosen for economy, low CO2 emissions & P11D value for low BIK tax implications and of course, competitive monthly rentals.
How are Monthly Leasing Rentals Calculated?
It’s the word I’m always writing about: the D Word. Yes, depreciation is one of the main factors that dictate the amount you will pay for your contract hire vehicle (as well as discounts and bonuses from various parties that make up the end result).
So whatever you do, it’s good to know what the best and worst cars by sector are when it comes to depreciation. You will be pleased to know that our good friends at Cap Automotive have given us access to exclusive research that tells us just that – here are the best depreciating cars by sector.
|Sector||Model||Average New Price Retained (OCN) %||Average Depreciation (£)|
|City Car||Fiat 500 (2009-)||56.3||-6,217|
|Supermini||Audi A1 Hatchback (2012-)||57.6||-7,133|
|Lower Medium||VW Scirocco Diesel Coupe (2008-)||52.0||-11,417|
|MPV||Mercedes Viano Diesel (2004-2010)||58.8||-12,120|
|SUV||Porsche Cayenne Diesel (2010-)||73.0||-12,258|
|Upper Medium||Audi A4 Diesel Allroad Estate (2012-)||51.4||-16,488|
|Electric||Nissan Leaf Hatchback EV (2011-)||23.0||-23,810|
|Executive||BMW Alpina Diesel Touring (2009-)||50.1||-29,280|
|Coupe Cabriolet||Mercedes SLK AMG Roadster (2012-)||48.1||-28,250|
|Large Executive||Porsche Panamera Diesel Saloon (2011-2013)||51.2||-30,334|
|Convertible||Porsche 911 Speedster Special Ed (2010-2012)||65.2||-50,198|
|Sports||Porsche 911  GT Coupe (2009-2012)||58.2||-52,136|
|Supercar||Ferrari 430 Coupe (2009-2010)||60.6||-69,173|
|Luxury Executive||Rolls Royce Ghost Saloon (2010-)||54.1||-99,340|
So there you have it: these are the best cars in percentage terms when it comes to losing money* but remember that the more expensive the car, the more it will lose in terms of cold, hard cash. And that is what you need to bear in mind.
If you want to know what your car is costing from the outset then taking on a fixed-term contract hire or leasing deal really is the only way to make sure that there will be no nasty surprises further on down the line. Particularly if you take on a maintenance agreement, all you will have to do is fuel and insure your vehicle (and of course, look after it).
To find out more about leasing your next vehicle call any of the friendly and experienced team at Compass Contract Hire on 02392 228070 or email firstname.lastname@example.org – they will be able to point you in the right direction when it comes to selecting the right vehicle for you and provide you with a personal quotation based on your individual requirements.
Next week we will look at the worst depreciators – there are some surprises in there, I can tell you!
Editor’s Note: All data based on CAP Black Book 3yr 60k Average New Price Retained (OCN%) by Model – latest models chosen for table illustration E.&O.E.