Cars

Vans

Personal Car Leasing - Case Study #3

Ex-Student embarking on first career

Name:

Nicola Popora

Location:

Bristol

Occupation:

Business Development Executive

Vehicle:

Ford Fiesta 1.25 82ps Style 3 Door

Personal Background

Nicola Popora recently graduated from Bristol University with a degree in Accounting and Management. She was lucky enough to be offered a place on the Graduate recruitment programme of a well know west country drinks manufacturer leading to her current position as a Business Development Executive.

She needs a car to commute to and from her workplace and she regularly likes to visit friends and family in Wales and London at the weekends. She had never considered car leasing as an option because she had always thought this method of financing transportation was really only suitable for businesses. It wasn’t until a friend told her how much she could save if she leased a car rather than borrowed the money to buy a car that she began to take an interest in personal car leasing.

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Cost Comparison

Nicola's options were to buy a good quality second hand car or maybe a brand new car, either would need to be financed with a bank loan. Alternatively she could choose a personal car leasing contract and get a brand new Fiesta delivered to her door with no additional costs.

New Ford Fiesta - Example Figures

The typical costs involved in acquiring a new Ford Fiesta 1.25 3 Door Hatchback would be:

Total Cost of Vehicle:

£9990.00

Initial Down Payment:

£990

Bank Loan:

£9000.00 (unsecured loan over 3 years at 8.1%)

Monthly Repayments:

£282.44 x 36 months

Total Repayments:

£10167.94

Second Hand Ford Fiesta - Example Figures

If Nicola had chosen to buy a second-hand Ford Fiesta. The typical costs for a 3 year old Fiesta with 30,000 miles are likely to have been around:

Total Cost of Vehicle:

£4995.00

Initial Down Payment:

£995.00

Bank Loan:

£4000.00

Monthly Repayments:

£136.47 x 36 months

Total Repayments:

£4912.92

Additional Costs:

Warranty:

2 years at £395.00

AA membership:

3 years at £174

MOT:

2nd and 3rd year of ownership at £76

Road Tax:

2nd and 3rd year of ownership at £120.00 per year

New Ford Fiesta Total Costs:

£12621.94

Second Hand Fiesta Total Costs:

£7371.92

Approx. Current Car Part Exchange Value:

£1000.00

Note: The figures above are approximate and provided for guidance only. The estimated total costs exclude any allowance for vehicle maintenance.

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Ford Fiesta 1.25 82ps Style 3 Door - Personal Car Lease Costs

The costs involved in acquiring a brand new Ford Fiesta 1.25 82ps Style 3 door hatchback from NVC on personal car lease contract were:

Initial Down Payment:

£689.94

Monthly Payments:

£149.44 x 35 months

Additional Costs:

Warranty:

Nil Cost. Nicola Popora's new leased Ford Fiesta includes 3 year warranty from Audi UK.

AA membership:

Nil Cost. Her new Fiesta comes with a full 3 years breakdown cover.

MOT:

Nil Cost. Her new Fiesta will not need an MOT during the 3 year duration of the lease.

Road Tax:

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

Total Leasing Costs (excl. maintenance):

£5920.42

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Benefits of Personal Car Leasing for This Customer

The benefits of personal car leasing for this customer were:

1. Nicola is now driving a reliable, stylish, new shape Ford Fiesta.
2. Cost Saving of approximately £451.50 when compared with the cost of a second hand Fiesta (including an allowance of £1000 as part exchange for her current car) purchased using a bank loan.
3. Cost Saving of about £5701 when compared with the cost of a new Ford Fiesta (including an allowance of £1000 as part exchange for her current car) purchased with a bank loan.
4. Her monthly payments are fixed and affordable at only £149.44 per month.
5. She only had to find a minimal down payment for the vehicle.
6. Servicing and maintenance have been included in the contract alleviating any concerns.
7. Her friends are all enormously jealous of her smart, new Ford Fiesta.

Prices correct as of 31st March 2009

Agent's Notes

Nicola was amazed that she could be driving a brand new Ford Fiesta in the colour and finish that she wanted for a down payment of less than £1000 and very affordable monthy repayments.

All negotiations and arrangements were carried out online and by telephone. We delivered Nicola's new car to her west country address at no cost.

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