To lease or not to lease Kodiaq - what did/would you do?

[stepdavi]

I opted for 2 on the l and k 190 tdi. I do get bored of cars after couple of years so I prefer 2 years, along with the impending hybrid / electric vehicles thought was best option. I went for buisness grey black leather, looked good to me.

Edited 13 June, 2019 by stepdavi

[WantAKodiac]

I may just do the same - I just thought it’ll be cheaper but doesn’t appear to be much in it... I’d go for black leather also especially with kids. 

Edited 13 June, 2019 by WantAKodiac
iPhone autocorrect gone bannanas

[stepdavi]

Same here, 7 year old proof, and with pano roof not too dark

[silver1011]

On 12/06/2019 at 20:56, BoxerBoy said:

I've tried the arithmetic but don't see £5K  a year.

 

 

£2,490 deposit, followed by 23 x £319 per month.

 

£2,490 + £319 x 23 (£7,337) = £9,827.

 

£9,827 divided by 24 months = £409 per month (amortised).

 

£409 x 12 months = £4,914, or as quoted "£5K a year".

 

Edited 13 June, 2019 by silver1011

[stepdavi]

If it appreciates buy.

If it depreciates lease.

[silver1011]

If only life were that simple 

[stepdavi]

👍🤣

[SurreyJohn]

On 12/06/2019 at 20:56, BoxerBoy said:

I've tried the arithmetic but don't see £5K  a year.

 

 

I see the 2 year deal as £2490 + 23months x £319 = £9827

 

Pretty close to £5k per year,

and probably over if you exceed 8000 miles per year, or scratch it, resulting in extra cost

 

But not quite sure why someone doing 8000 miles per year max would choose a diesel.

 

[stepdavi]

Low down torque, nice on motorways, love the clatter of the engine, dearer to buy than petrol, cheaper to lease. They are my reasons. Apart from noise, that was joke.🤪

[silver1011]

I toyed with leasing, but at the time, discounts on the Kodiaq were attractive.

 

This was my deal...

That was a year ago.

 

Taking the typical annual PCH price above on an L&K (appreciate its not quite apples-for-apples) @ £5,000 then after an equivalent of 6 years of leasing, I own the Scout outright. I'd imagine a 6 year old / 60,000 mile Kodiaq would be worth somewhere between £8 - £10,000?

 

The advantage of PCH being that by then you'd be on your third brand new Kodiaq, still under warranty.

 

There is no right or wrong answer, simply what works best for your personal circumstances.

 

I'd happily lease again, if the right deal came up at the right time.

 

Edited 13 June, 2019 by silver1011

[stepdavi]

Thumbs up to that deal. Can see why you opted for that. I've put my point across on this thread but honestly cant see problem in pch pcp or cash, what ever people want to do, just cause it's right for one person doesn't mean it's right for another.

[WantAKodiac]

Petrol appears to be more expensive now - guessing much more pressure on diesels is yet to come... which is a shame as for high mileage situations i don’t think you can beat it just yet. 

 

Also it might be a weird question but why do they still make manuals in this day and age? Surely auto is the way forward? Just stick it in drive and of you go... 

[ahar]

In the past I've always bought my cars outright, but 3 years ago the offer was 0% finance on the Octavia VRS - along with some good discounts the deal was excellent so I went for a PCP.

 

Tomorrow I'll swap my Octavia for a Kodiaq, again on PCP.  The deal was nowhere near as good as before, but I'm leasing this time because:

 

 - I want 7 seats and a diesel for the torque for towing.  The Kodiaq seems to be a very good option for that while the new Toureg doesn't seem to have a 7 seat option in the UK.  

 - No idea what's going to happen with residuals for large diesel cars in the next few years, but I can only imagine that it'll be worse than we think as electrics and hybrids really start to get good, and the government clamps down on diesel engines.

 - I will definitely want to swap at the end of the finance period, because I like new cars!

 

This isn't the cheapest way, but the flexibility at the end is better and risk is lower.  However, individual circumstances mean that PCP on a Kodiaq diesel may not be the right route for everyone.

[MrTrilby]

I don't think the residuals will be affected much by EVs or hybrids. There won't be many three year old hybrid SUVs for sale in three years time for people who can only afford to pick up a three year old car. It's unlikely that emissions regulations will have tightened up to ban EU6 diesels - the EU5 restrictions will not long have been in place in 3 years time. People in the market for a 3 year old £15k SUV are looking for value for money. Otherwise they'd be buying new. And a 3 year old diesel is still going to offer low running costs.

 

Over 6+ years then yes, it might be a different answer, but not 3. And I'm not too fussed because in 6 years time, assuming we still have it, our Kodiaq will have done nearly 200k miles so I won't be too fussed about residuals but I am definitely quite fussed about fuel costs...

[silver1011]

16 hours ago, ahar said:

Tomorrow I'll swap my Octavia for a Kodiaq, again on PCP.  The deal was nowhere near as good as before, but I'm leasing this time because:

 

Do you mean PCH?

 

PCP is not leasing.

[silver1011]

15 hours ago, MrTrilby said:

I don't think the residuals will be affected much by EVs or hybrids.

 

Agreed, people get too hung up on residuals.

[TonyTonic]

I just bought a new Tarraco diesel on 4 years and the baloon £12,500 so don't think they think diesel will be bad residuals. Lost approx 60% in 4 years. Is that how it works?

[TheRobinK]

3 hours ago, TonyTonic said:

Lost approx 60% in 4 years. Is that how it works?

 

Well, on a PCP they are saying that 12,500 is the guaranteed minimum future value (GMFV) for the end of contract calculations.

 

What you want is for that GMFV figure to be lower than the actual value in 4 years. If the actual market value in 4 years is lower than the 12.500, then its negative equity and you want to walk away.  It would cost you more than its real market value to keep it.

 

If the actual market value is higher, say 18,000 - then it may make sense to pay the GMFV (the balloon payment) and keep it. Or you could do what VAG hopes you will and that is to use your 5,500 equity (i.e. 18,000 - 12,500) against another new car from them. 

 

To keep you in the Seat marque - they should be setting the GMFV lower than what they think it will be worth, in order to incentivise you in the future. So - hopefully - that 60% in 4 years is deliberately pessimistic. That said - UK members will know better than me what your typical depreciation rates are like for cars like these.

[TonyTonic]

13 minutes ago, TheRobinK said:

 

Well, on a PCP they are saying that 12,500 is the guaranteed minimum future value (GMFV) for the end of contract calculations.

 

What you want is for that GMFV figure to be lower than the actual value in 4 years. If the actual market value in 4 years is lower than the 12.500, then its negative equity and you want to walk away.  It would cost you more than its real market value to keep it.

 

If the actual market value is higher, say 18,000 - then it may make sense to pay the GMFV (the balloon payment) and keep it. Or you could do what VAG hopes you will and that is to use your 5,500 equity (i.e. 18,000 - 12,500) against another new car from them. 

 

To keep you in the Seat marque - they should be setting the GMFV lower than what they think it will be worth, in order to incentivise you in the future. So - hopefully - that 60% in 4 years is deliberately pessimistic. That said - UK members will know better than me what your typical depreciation rates are like for cars like these.

By my reckoning the car will loose 50% so around 15,500 in 4 years (of course if the mileage is ok and no damage) and they are hoping for the 3k (which seems to be standard) ie 10%ish for the next SEAT. If all goes well with the car and there are no extra penalties for diesels I want to keep it another 3-4 past that, however i reckon the next car in 4 years (or earlier) will be electric or at least hybrid (sadly)

Edited 14 June, 2019 by TonyTonic

[silver1011]

As an example. The oldest (early 2017) Kodiaq's are a-plenty on Autotrader, all around £20,000...

 

 

This particular car had a list price when new of £28,000. Take off the usual 10-15% discount (12.5% average), either through finance contributions or dealer discounts, and chances are the first owner paid £24,500 (£3,500 off list)...

 

 

Let's assume that anyone looking to buy the car above manages to negotiate a further £500 off the screen price, so £18,900.

 

That's £5,600 in depreciation in two years, with average mileage, or £2,800 per year.

 

Edited 14 June, 2019 by silver1011

[Yogi-Bear]

1 hour ago, silver1011 said:

That's £5,600 in depreciation in two years, with average mileage, or £2,800 per year.

 

I think your figures are optimistic. The dealer won’t have paid that much for it - possibly as much as £2-3000 less than the price they are now trying to sell it for.

[silver1011]

Yes, but for comparison purposes you've got to keep it as close as possible. Any amount the dealer paid for the car, below what they're asking for via the screen price, will have been factored back into the car they sold to the customer they bought the Kodiaq from.