If you are considering a Contract Hire or Lease vehicle, and you are looking at what you can get for your money, then you may be a little confused. This is simply because when you are looking at the monthly ‘rentals’ you are required to pay for your vehicle, you can get some pretty unexpected results.
Which Vehicle on Contract Hire?
When you are considering a vehicle on contract hire, there are a few aspects you may want to consider, the tax you are likely to have to pay being a major consideration clearly.
However, when your get to the ‘what bang you can get for your buck’ in terms of the monthly rentals, then you could be quite shocked.
I was looking at a couple of local motor dealers where I live, on the sunny Wirral, and looking at a large hatch or saloon, sort of Ford Mondeo size.
I took a look at the likes of a Vauxhall Insignia, Skoda Superb, Renault Laguna, fairly run of the mill stuff. They are all really nice cars in their own way, and for a mid spec diesel you were looking at figures of around £400 per month (a bit of negotiating to be done there then).
Then I took a look at the likes of a BMW 3 series and the Mercedes C Class, suspecting that they would come above the the budget I was looking at.
The Mercedes C Class diesel Blue Efficiency was coming in at around £250 per month!, a full £150 less than an Insignia!
How can this be?
Why Contract Hire rentals can shock you?
Well contract hire rentals are all based on the discount the dealer can get, and the residual value at the end of the deal. The smaller the gap between the start and end value, tyhe better the rental will be, hece why in this case the Mercedes is such a bargain.
Have not made my mind up yet, except I do not need to buy the Contract Hire Gap Insurance at their prices!
Will let you know how I get on, but contract hire prices have certainly shocked me!