Simple Maths,
3 years allowance at £3,000 = £9,000 + final allowance of £51,000 = £60,000 = depreciation on car £100,000 -£40,000.
Paul

 

....Sorry Paul I am mathematically challenged...Never heard the term Hire Purchase Contract, nor term Allowance in this context...back when I used to buy cars with borrowed money, put down 20% and rest in 36 monthly payments. Now that I think of it just few years ago I bought the 2009 Volvo C30...put it on loan contract to keep up credit rating...it was at 3% interest...lets talk cars...mine is 2010 Speed...yours...

 

In the Uk a hire purchase contract means that you own the car but the Finance Company have a charge over it. You get full ownership when you make the final payment. On a leasing contract the Finance Company always own it and you just hire it.
I have a 2002 Bentley Arnage T and a 1989 BMW 635CSI. Both all paid for!!

Paul

 

....thank you Paul...To translate to American vernacular...finance co. has charge over it= the bank is on the Pink Slip (California being largest auto population, the ownership document used to be pink) When you pay off loan the Bank signs off their interest in car. As long as Bank is on Pink Slip they require you carry insurance to protect their interest in car...after paid off, we often drop collision insurance or put on large deductible...We do not use term "hire" renting is common useage....here a hired hand=giving someone employment...
How long have you had the 2002 Arnage, how do you generally use car and mileage and service...Having a 10Speed has been all good stuff, hope more of same...JimB

 

I have had the Arnage T for 4 years and do about 4000 miles a year which includes an annual trip to Europe. I have it serviced by the local dealer annually but any work that needs doing is done by a friend who is an experienced and qualified mechanic. Prior to this I had a Bentley Continental R for about 5 years. I currently also have a 1989 BMW 635 Csi. Over the years I have had a lot of interesting cars, Ferrari, Maserati, Daimler, BMW, Mini, Gordon Keeble etc. I always buy them to drive not to look at.

Paul

 

....you broke the code...a friend who is a qualified mechanic...what were factors in getting Arnage...I am not familiar with that model, except, have impression its on conservative side and maybe 4 door...perhaps when I get older I to will want a 4 dr Bentley...hard to put that together with your Ferrari etc...I had a Daytona...very beautiful ahead of its time, but no pleasure to drive except at speed...I give up...what's a Gordon Keeble...JimB

 

This is why I bought an Arnage!!


A gordon Keeble is a rare 1960s British Sports car powered by a Chevvy small block V8.



Paul

 

...Hello ek1...I have read the 26+ paragraphs of your "plain vanella" auto lease...it is "Boiler Plate" meaning the person signing contract cannot change one word. The Contract is constructed by expert lawyers and accountants to protect the business doing the Leasing.
As in all these contracts, the four corners of written contract contain all the issues and terms.
Whatever the car salesman tells you means nothing...absolutely nothing. The salesman can tell you anything, his words or promises, zero...
Interesting wordage where you sign the contract. It clearly says you have "read" the whole contract. It clearly does not say you "understand" all the legalize in the 26+ paragraphs. Furthermore to cover themselves, it says if you have any questions, Hire a Lawyer or perhaps an Accountant.
Now ek1, how many people who sign these contracts, do you think actually read and understand these contracts.
As I said previously, they nail you on way out. No free lunch.
JimB