Articles
Newsletter
| Should I buy my ex lease car? |
 |
 |
 |
| Written by Harvey Williams |
| Thursday, 23 April 2009 11:05 |
|
When a contract hire vehicle reaches the end of its term, the normal procedure is for the finance company to arrange to collect the vehicle. If you are interested in the car, you would need to approach the finance company for a price but will the purchase price they offer you represent a bargain? Unfortunately it will probably not be at a bargain price. The prospective purchaser will probably think that it is an ideal opportunity for the finance company to get rid of the vehicle without any hassle, the finance company will probably think that it is an ideal opportunity to get a higher price for the vehicle, setting the value at somewhere in between the trade and retail price. If you are interested in buying your ex contract hire car maybe for a member of your family, bearing in mind they are unlikely to do anything special on the price, does it represent a good deal? Well it does have its advantages, in that there is a lot be said for perhaps one of your children driving a car where you know the vehicle's history from new. For example you will know that it hasn't been in any major accidents and that any less serious body damage has been repaired satisfactorily at the main dealership. Although they should not, it is not unheard of for the hirers of contract hire vehicles to have damaged bodywork repaired at a local garage rather than the main agent. Sometimes this can affect the anti corrosion warranty. If the finance company becomes aware of this on the vehicles return, it can be costly for the hirer. So how do finance companies dispose of cars when they come to the end of their term? The auctions is where most are sold, some finance companies have their own sites where traders can go and bid on vehicles, even EBay is used by some companies nowadays. Of course if you wanted to buy your own vehicle at a potentially lower price, which you almost certainly would if they are disposed of through the auctions, you would have to know where that particular company disposes of their cars, which would be difficult. You could consider going to an auction and buying an ex lease vehicle, although it wouldn't be the same as buying the vehicle you have been driving for the past two or three years and its warranty probably would have expired, which makes it rather more risky than buying the car you know. At almost all auctions you will see private buyers bidding for cars, although auctions are designed for the trade. Those in the trade who buy at auctions sometimes make mistakes but private buyers make an awful lot more. Some ex contract hire vehicles are sold "with no major defects" and some are "sold as seen". If they are sold as seen that doesn't necessarily mean the vehicle has any faults, some companies sell all their vehicles in this way. Conversely if it is sold with no major defects it does not necessarily mean there are not any, it is essential to check the vehicle out. The car can be rejected within a certain time scale. Private buyers can often be seen paying far too much for cars, as they get carried away with excitement of the moment. Trade buyers know what they want to pay for a car, that's not to say that they don't sometimes get tempted in to paying a little more but not too much more. Whereas private buyers sometimes can't seem to stop bidding and auctioneers have been known to take "bids off the wall", this is where a very enthusiastic private bidder, who is clearly not going to stop bidding, is bidding against a non existent bidder. Buying an ex lease car can be quite a good idea. They are generally in reasonable condition, the mileage is usually correct and it will have been serviced at the correct intervals. Of course if you can buy one that has just come off a twenty four month term, even better; with most manufacturers but not all, you will still have one year unexpired warranty and usually the option to extend it. It is worth checking the service history of the car, to make sure that it has been serviced at the correct intervals. You would normally expect the leasing company to check this on the vehicles return but they do sometimes overlook it and failure to service the vehicle at the correct intervals, will generally invalidate the manufacturers' warranty. One of the problems of buying a vehicle without a warranty or where the warranty has expired is the risk of an electronic fault, which nowadays is very common and often very difficult to cure. All in all buying your own car when it comes to the end of its term is a much better bet. About the Author: Should you have any queries or questions with regard to Fleet Management, Licence checking, Contract Hire, Personal Contract Hire, Lease Purchase or vehicle Hire Purchase, please do not hesitate to contact us. Bowater Price plc 01494 536 536. www.bowaterprice.com. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 309850
Content : 2297
Web Links : 1
Content View Hits : 309850