Cars

Vans

Personal Car Leasing - Case Study #1

Driver who has previously tended to go for second hand cars financed with a bank loan

Name:

Tony Goldini

Location:

Crawley, Sussex

Occupation:

Electronics Engineer

Vehicle:

Audi A4 Avant

Personal Background

Mr Goldini is a family man with two children, both in their mid teens. He uses his car for daily commutes to and from work, a round trip of about 40 miles, along with general family use and occasional summer camping trips in the UK and Europe.

Before discovering the benefits of personal car leasing Mr Goldini would tend to buy second-hand cars that were around 2 or 3 years old he would finance his purchase with an auto loan from his bank.

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Cost Comparison

The typical costs involved in acquiring a second hand Audi A4 Avant 1.8 T SE would be:

Total Cost of Vehicle:

£12495 at 3 years old with 50,000 miles and 12 month MOT, Tax and Warranty

Initial Down Payment:

£1495

Bank Loan:

£11000

Monthly Repayments:

£362.25 x 36 months

Additional Costs:

Warranty:

2 years at £495

AA membership:

3 years at £174

MOT:

2nd and 3rd year of ownership at £76

Road Tax:

2nd and 3rd year of ownership at £290

Total Costs excluding Maintenance:

£15571

Estimated Part Exchange Value:

£4000

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Audi A4 Avant - Personal Car Lease Costs

The costs involved in acquiring a brand new Audi A4 Avant from Nationwide Vehicle Contracts on personal car lease contract were:

Initial Down Payment:

£920

Monthly Payments:

£298.94 x 35

Additional Costs:

Warranty:

Nil Cost. Mr Goldini's new leased Audi includes 3 year warranty from Audi UK.

AA membership:

Nil Cost. Mr Goldini's new Audi A4 comes with a full 3 years breakdown cover.

MOT:

Nil Cost. Mr Goldini's new Audi A4 will not need an MOT during the 3 year duration of the lease.

Road Tax:

Nil Cost. The leased Audi A4 comes with a full 3 years road tax included in the lease price.

Total Costs excluding Maintenance:

£11382.90

Cost Benefits:

Saving of £188.10 when compared with buying a used Audi A4

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Benefits of Personal Car Leasing for This Customer

The benefits of personal car leasing for this customer were:

1. Mr Goldini is now driving a brand new car and not the second hand cars that he has driven in the past
2. Cost Saving of £188.10 against buying a used Audi A4
3. His monthly transport costs have been reduced
4. He no longer has to concern himself with disposing of his used car
5. His lease contract includes full Audi UK warranty
6. Mr Goldini's family are looking forward to their camping holiday in their new Audi A4 Avant.

Prices correct as of 31st March 2009