Controversial Opinion?

[Bootneckshuffl]

Hi all.

Coming to the end of my 3 year lease with Zen and I can’t say I’ve been pleased with leasing.

Haven’t had any issues with Zen directly, (apart from them wanting to put my monthly payment up 40% for a 12 month extension) but I just don’t see what the attraction is over a PCP!

It’s just renting a car at the end of the day, you’ve got no equity at all, nothing and then you’ve got to lump up 1000’s more in another deposit. Am I missing something?

Love to hear what other people’s thoughts and experiences are?

 

[rincewind]

I've leased for over 3 years - LeasePlan actually slightly dropped the price after the third year, and I'm currently on a a month by month 'extension'. I leased for the first time because I didn't know if a) I'd like the EV experience and b) was concerned that after 3 years battery technology would have raced ahead and no one would want to by the car I have (Model 3 P btw).

All that said, I wouldn't lease again. Prices are now 40+ % higher than 3-4 years ago - I'll probably be buying next time.

 

[Bootneckshuffl]

I've leased for over 3 years - LeasePlan actually slightly dropped the price after the third year, and I'm currently on a a month by month 'extension'. I leased for the first time because I didn't know if a) I'd like the EV experience and b) was concerned that after 3 years battery technology would have raced ahead and no one would want to by the car I have (Model 3 P btw).

All that said, I wouldn't lease again. Prices are now 40+ % higher than 3-4 years ago - I'll probably be buying next time.

You’ve done ok there mate. Zen just quoted my 40% increase on my 3 year contract for 6000 miles. Contacted them and had words. Gave me some nonsense about internet rates. I can’t believe they want me to pay MORE for an older car! Ha.

I’m leaning towards PCP again now to be fair. Just wondered what others were doing/thinking, so thanks.

 

[Whyone]

Company car EV lease obviously makes all sorts of sense.

But 100% agree with your views on personal leasing.

 

[Bootneckshuffl]

Company car EV lease obviously makes all sorts of sense.

But 100% agree with your views on personal leasing.

Thanks. Out of interest, so you think there’s more benefit of a company car lease over a company car PCP?

 

[Durzel]

People who leased back in 2019 and even 2020 lucked out, largely because there wasn’t really a liquid market for used Model 3s at that point, because they were too new. Finance companies basically had to take a punt on how much they thought the GFV would be, and offered finger in the air premiums that ended up being very competitive.

I remember getting a quote back in the day that seemed really competitive, and totalling up the number of months I‘ve had the car, how much it cost to buy in full, and how much it’s worth now, I don’t think I would have been worse off leasing. That isn’t “normal” under the normal run of things, because you expect to pay a premium for the flexibility of paying monthly for something.

All of that is to say that Tesla’s price antics probably aren’t filling finance companies with much confidence nowadays. They understandably won’t want to find that they have calculated a GFV that is way higher than reality, because Tesla have dropped prices 10% on a whim, so I can imagine them erring on the side of caution and charging higher premiums (and a lower future GFV) than for other cars.

 

[Bootneckshuffl]

People who leased back in 2019 and even 2020 lucked out, largely because there wasn’t really a liquid market for used Model 3s at that point, because they were too new. Finance companies basically had to take a punt on how much they thought the GFV would be, and offered finger in the air premiums that ended up being very competitive.

I remember getting a quote back in the day that seemed really competitive, and totalling up the number of months I‘ve had the car, how much it cost to buy in full, and how much it’s worth now, I don’t think I would have been worse off leasing. That isn’t “normal” under the normal run of things, because you expect to pay a premium for the flexibility of paying monthly for something.

All of that is to say that Tesla’s price antics probably aren’t filling finance companies with much confidence nowadays. They understandably won’t want to find that they have calculated a GFV that is way higher than reality, because Tesla have dropped prices 10% on a whim, so I can imagine them erring on the side of caution and charging higher premiums (and a lower future GFV) than for other cars.

Brilliant insight mate, thanks. Yeh, guy from Zen earlier on commented on the “good deal” I’ve had from 2020, that said, I didn’t think they’d attempt to penalise me for a years extension on the lease.

That aside, decision time I guess, lease or PCP. It’ll be going through my business like before but think this time around I might want to purchase the car at the end ya know.

 

[JP1611]

Hi all.

Coming to the end of my 3 year lease with Zen and I can’t say I’ve been pleased with leasing.

Haven’t had any issues with Zen directly, (apart from them wanting to put my monthly payment up 40% for a 12 month extension) but I just don’t see what the attraction is over a PCP!

It’s just renting a car at the end of the day, you’ve got no equity at all, nothing and then you’ve got to lump up 1000’s more in another deposit. Am I missing something?

Love to hear what other people’s thoughts and experiences are?

I was with Zen and extend for another year, my payments went down, but that’s because i reduced my mileage to due to being under my allowance during Covid lockdown periods.

Leasing has worked well for me for many years, but when looking for my next car, the lease prices on Tesla were really high, especially with Zen. I opted to take out a PCP directly with Tesla with the intention of buying the car after the 3 years.

 

[Bootneckshuffl]

I was with Zen and extend for another year, my payments went down, but that’s because i reduced my mileage to due to being under my allowance during Covid lockdown periods.

Leasing has worked well for me for many years, but when looking for my next car, the lease prices on Tesla were really high, especially with Zen. I opted to take out a PCP directly with Tesla with the intention of buying the car after the 3 years.

Cheers for this. Yeh, Zen doing a nice little number on me here I think, near 40% increase on monthly payments for same yearly mileage I’ve done for the last 3 years!

Im same boat as you now, wanting to buy the next one at the end of the term. Has been stories of some leading companies offering purchase. Zen practically laughed in my face when I asked about purchase.

 

[nunp]

People who leased back in 2019 and even 2020 lucked out, largely because there wasn’t really a liquid market for used Model 3s at that point, because they were too new. Finance companies basically had to take a punt on how much they thought the GFV would be, and offered finger in the air premiums that ended up being very competitive.

I remember getting a quote back in the day that seemed really competitive, and totalling up the number of months I‘ve had the car, how much it cost to buy in full, and how much it’s worth now, I don’t think I would have been worse off leasing. That isn’t “normal” under the normal run of things, because you expect to pay a premium for the flexibility of paying monthly for something.

All of that is to say that Tesla’s price antics probably aren’t filling finance companies with much confidence nowadays. They understandably won’t want to find that they have calculated a GFV that is way higher than reality, because Tesla have dropped prices 10% on a whim, so I can imagine them erring on the side of caution and charging higher premiums (and a lower future GFV) than for other cars.

I’ve discovered this first hand today. I’ve been thinking about terminating my 3 year M3 lease early for a while. I’m half way through my lease now. However back in December the early termination fee was circa £3k, today the lease company wants £4.5k. I thought it would have gone down not up! Clearly they don’t want to take the car back now compared with back in December before Tesla price drops.

 

[yessuz]

Hi all.

Coming to the end of my 3 year lease with Zen and I can’t say I’ve been pleased with leasing.

Haven’t had any issues with Zen directly, (apart from them wanting to put my monthly payment up 40% for a 12 month extension) but I just don’t see what the attraction is over a PCP!

It’s just renting a car at the end of the day, you’ve got no equity at all, nothing and then you’ve got to lump up 1000’s more in another deposit. Am I missing something?

Love to hear what other people’s thoughts and experiences are?

I am with you. I couldn't understand leasing (and pcp to be fai)( when tesla loan (for personal) is more or less same monthly payment (ok for longer period) but you get asset in the end of the day

Pcp as well you can get asset... But you have balloon payment in the end.

Lease is just a rent

 

[Garry TheBiz]

We've previously bought all our cars/vans outright through the business, but 2 yeas ago we tried leasing. I was never comfortable with the uncertainty of charges for scuffed wheels, minor dents etc, as well as the restriction on mileage. Last week the lease went back and we bought our current Model 3 outright. We'll most likely keep it beyond 3 years, and the total cost of ownership will be less than the cost of leasing, with the benefit of unrestricted mileage, and any wheel scuffs, car park door dents etc we can chose to fix or leave be as we feel fit. Additionally we'll have the residual value of the asset when we're ready to dispose of it.

I suppose it's down to your own personal level of comfort with leasing vs buying plus available cash in the business. For us, I doubt we'll ever lease again.

 

[TheSharkbites]

People on pcp over the last few years since Covid hit have lucked in, the GMV that people had in pre pandemic did not account for the massive increase in used values. My GMV on my BMW was laughable and I made over 10k profit over what I could have handed it back for. I even ran it for another 2 years and still made more than the GMV and still had a profit, in fact the last 18 months I only had £1500 depreciation.

 

[Bootneckshuffl]

I am with you. I couldn't understand leasing (and pcp to be fai)( when tesla loan (for personal) is more or less same monthly payment (ok for longer period) but you get asset in the end of the day

Pcp as well you can get asset... But you have balloon payment in the end.

Lease is just a rent

100% agreed

 

[Bootneckshuffl]

People on pcp over the last few years since Covid hit have lucked in, the GMV that people had in pre pandemic did not account for the massive increase in used values. My GMV on my BMW was laughable and I made over 10k profit over what I could have handed it back for. I even ran it for another 2 years and still made more than the GMV and still had a profit, in fact the last 18 months I only had £1500 depreciation.

Brilliant that

 

[Bootneckshuffl]

I am with you. I couldn't understand leasing (and pcp to be fai)( when tesla loan (for personal) is more or less same monthly payment (ok for longer period) but you get asset in the end of the day

Pcp as well you can get asset... But you have balloon payment in the end.

Lease is just a rent

Exactly! I mean fair enough it’s horses for courses, totally get that but I just can’t get past how at the end of the lease term, you’re literally back to square one and gotta stump up another 4-5k and they just swallow that whole!

 

[Bootneckshuffl]

We've previously bought all our cars/vans outright through the business, but 2 yeas ago we tried leasing. I was never comfortable with the uncertainty of charges for scuffed wheels, minor dents etc, as well as the restriction on mileage. Last week the lease went back and we bought our current Model 3 outright. We'll most likely keep it beyond 3 years, and the total cost of ownership will be less than the cost of leasing, with the benefit of unrestricted mileage, and any wheel scuffs, car park door dents etc we can chose to fix or leave be as we feel fit. Additionally we'll have the residual value of the asset when we're ready to dispose of it.

I suppose it's down to your own personal level of comfort with leasing vs buying plus available cash in the business. For us, I doubt we'll ever lease again.

Good points mate

 

[JP1611]

Cheers for this. Yeh, Zen doing a nice little number on me here I think, near 40% increase on monthly payments for same yearly mileage I’ve done for the last 3 years!

Im same boat as you now, wanting to buy the next one at the end of the term. Has been stories of some leading companies offering purchase. Zen practically laughed in my face when I asked about purchase.

I asked Zen about buying the car, and received a similar response to you. I actually terminated the lease 8 months before the end of the contract, and took advantage Tesla price reductions and reduced APR on a PCP. The penalty i paid on the early termination was more than offset with the reduction of the APR on PCP.

In fairness to Zen, i had scuffed alloys and small scratch on the bumper and slightly over my mileage and was not charged for these when I returned the car.

 

[GlynG]

I've never leased a car, but I view leasing as a way to have a brand new car fairly frequently - a bit like keeping up with the Jones's. Lease is for those that have a car as a tool to do a job and rarely do people look after another's property like their own - so they tend to be abused - not cherished. They are cars for people that don't like cars.

I spend so much time cleaning my car, I like to keep it looking brand new, retired and don't drive any great mileage, always defensively park wherever I go, but I do love my cars - none of them have ever been less than spotless. If I leased I wouldn't have any interest in doing that because it isn't mine, plus i spend a lot of money on them adding stuff but even the cleaning products cost a lot of money

I know Ill take the hit come resale but over the last 48 years driving I've lost a shed load on all cars I bought but to me the car is a hobby - and hobbies cost money.

My 2020 M3P is without scratch, dink, dent, it absolutely gleams better than new, just over 8K on the clock, always garaged when not in use and garage is heated in the winter. I took it for its first MOT in March - had to test the screen washers as I had never used them, bad weather and car stays in garage - the beauty of retirement.

 

[Bootneckshuffl]

I've never leased a car, but I view leasing as a way to have a brand new car fairly frequently - a bit like keeping up with the Jones's. Lease is for those that have a car as a tool to do a job and rarely do people look after another's property like their own - so they tend to be abused - not cherished. They are cars for people that don't like cars.

I spend so much time cleaning my car, I like to keep it looking brand new, retired and don't drive any great mileage, always defensively park wherever I go, but I do love my cars - none of them have ever been less than spotless. If I leased I wouldn't have any interest in doing that because it isn't mine, plus i spend a lot of money on them adding stuff but even the cleaning products cost a lot of money

I know Ill take the hit come resale but over the last 48 years driving I've lost a shed load on all cars I bought but to me the car is a hobby - and hobbies cost money.

My 2020 M3P is without scratch, dink, dent, it absolutely gleams better than new, just over 8K on the clock, always garaged when not in use and garage is heated in the winter. I took it for its first MOT in March - had to test the screen washers as I had never used them, bad weather and car stays in garage - the beauty of retirement.

Awesome

Yeh we keep ours in great condition, always treated our cars great. How much was your MOT?