Swap M3 for MY?

[giorgosa]

Hi,

I have a M3 RWD since Dec-22. Currently at 4,500 miles.
This is a company car, and due to change of job I need to give it back in Sep-23. I can buy it, price given to me is £32k + £6k early termination of the leasing agreement as I leave through resignation (these both values will be lower in September, lets assume £31k + £5k). I have the car since brand new, picked it up from Tesla, and to be fair this seems a good price to me.

Or should I give it back (pay only the early termination fee) and look at the MY RWD on a PCP deal? I'll give less cash straight away and the residual value of the MY should be better after 3-4 years?

Thoughts?

 

[Jason71]

Hi,

I have a M3 RWD since Dec-22. Currently at 4,500 miles.
This is a company car, and due to change of job I need to give it back in Sep-23. I can buy it, price given to me is £32k + £6k early termination of the leasing agreement as I leave through resignation (these both values will be lower in September, lets assume £31k + £5k). I have the car since brand new, picked it up from Tesla, and to be fair this seems a good price to me.

Or should I give it back (pay only the early termination fee) and look at the MY RWD on a PCP deal? I'll give less cash straight away and the residual value of the MY should be better after 3-4 years?

Thoughts?

why are you responsible for the early termination fee on a company car even if you are resigning is that normal??
That aside 32k seems like a very good price. 38K is Meh. but if you have to pay the termination fee anyway they at current prices it does seem like a very good deal at present but no idea where the prices will be in September after the new model launches. The other option is take it then sell it since similar cars are going for 38K on Autotrader.

 

[pheo]

why are you responsible for the early termination fee on a company car even if you are resigning is that normal??
That aside 32k seems like a very good price. 38K is Meh. but if you have to pay the termination fee anyway they at current prices it does seem like a very good deal at present but no idea where the prices will be in September after the new model launches. The other option is take it then sell it since similar cars are going for 38K on Autotrader.

There can be a big loss to the leasing company so some schemes do do this if the employee chooses to leave - the business is essentially left paying a lease for multiple years otherwise

 

[giorgosa]

There can be a big loss to the leasing company so some schemes do do this if the employee chooses to leave - the business is essentially left paying a lease for multiple years otherwise

yes this is the reason. It is my choice to leave, if it was e.g. redundancy then i wouldn’t pay anything.

I have the advantage that I gave my notice, but I have till mid august to make a decision on the car. A good point made above is whether there will be a new model by then. In this case maybe the £32k will drop much more than expected…

 

[Jason71]

There can be a big loss to the leasing company so some schemes do do this if the employee chooses to leave - the business is essentially left paying a lease for multiple years otherwise

I get that I was not suggesting the lease company would have to swallow it. I just assumed your employer would have to foot the bill and its just one of the issues they face by choosing to lease company cars. I have no knowledge of this stuff I just did not realise your employer could effectively fine you for leaving! I assume the opp had to agree to this to qualify for a company car.

 

[GeorgeSymonds]

why are you responsible for the early termination fee on a company car even if you are resigning is that normal??
That aside 32k seems like a very good price. 38K is Meh. but if you have to pay the termination fee anyway they at current prices it does seem like a very good deal at present but no idea where the prices will be in September after the new model launches. The other option is take it then sell it since similar cars are going for 38K on Autotrader.

I worked for a company where I had to pay something like 9 months worth of payments (or to the lease end, whichever was sooner) if I left.

It seems some company car providers do underwrite early returns but it's like an insurance policy and they build the extra cost into overall price

Question in hand though, the current price of a New M3 RWD is from £38,790. I assume the early penalty has to be paid regardless so its the £31k - £32k value you need to compare - on that basis its £7k down, even used ones are £35k so in that sense its not a bad price, especially as you know the car.

 

[giorgosa]

I worked for a company where I had to pay something like 9 months worth of payments (or to the lease end, whichever was sooner) if I left.

It seems some company car providers do underwrite early returns but it's like an insurance policy and they build the extra cost into overall price

Question in hand though, the current price of a New M3 RWD is from £38,790. I assume the early penalty has to be paid regardless so its the £31k - £32k value you need to compare - on that basis its £7k down, even used ones are £35k so in that sense its not a bad price, especially as you know the car.

Thanks, if it was today I would buy the car. Essentially, I pay a 2nd hand price, for a car that I own from Day 1.

I will reconsider if something significant happens between now and mid of August e.g. a new model 3, an updated HW4 in M3 or MY, or a significant movement in prices. (all these if happen should also have an impact on the price that I am being asked to pay though)....