Here's the next one:
Paul - just for my own understanding, could you post an example quote? An Intense Tracer, for example. For a good quality build (XT level, say) - what kind of deposit, weekly cost & lease period are you looking at?
Intense Tracer 2 with a retail build price of £4200 would be:
3 x £350 followed by 24 payments of £19.27 a week or £83.51 a month.
That means that £1,145.76 is effectively kept in your pocket throughout the lease.
Our 2 year leasing offering is more focused upon offering a sensible alternative to other options for getting your bike rather than on savings. Nevertheless, savings are possible:)
If you bought this bike you'd be hard pressed to get a discount full stop. If you got a discount it would probably be on peripherals such as clothing etc. If you bought it on interest free credit then discounts are not usually available as it eats into the retailer's margin too much.
So before now, you would have had to choose to buy it outright and have £4,200 tied up in your bike, or buy it on interest free and pay it off with a 10% downpayment of £420 and then 23 payments of £164.35. Credit cards are another option but charges mean that you'd always end up paying more.
To free up your cash from your bike you'd need to sell it. It's very difficult to put a value on a second hand bike but would you get much more than £1,145.76? Remember, either way, £4,200 would be tied up in the bike until you sold it.
Leasing this bike lets you take advantage of low monthly payments, a much lower total outlay, and avoid the hassle of trying to sell your bike second hand. Your personal cashflow is much healthier as a result as your outlay is much lower throughout.
If you did a like for like comparison, you'd have more money in your household for longer. It's not so much a saving as being more prudent with how you spend your money. It's important to note that it would likely NOT cost you more to lease than to buy.
Of course, if you think that you'd get less than £1,145.76 when you came to sell your bike then you would have made a saving. Second hand values are very arbitrary and seasonal and it can be difficult to find the right buyer who is willing to pay over £1000 for something they'd have no comeback on. Remember, this person with £1000 would now be able to lease one of these bikes new affordably:)
The other thing to consider is running costs. How much do you spend on replacement parts, consumables and upgrades each year? Leasing lets you keep these down.
At the end of the day, it's another option to consider and simply makes high-end bikes affordable as well as letting you get more for your money if you're on a budget.
Also, remember that you have 4 options at the end including the option to buy. This option works out like taking a low rate interest loan. We really are doing our best to make this leasing lark an equitable option for all concerned. If you prefer to change your bike regularly, leasing gives you a good alterative way to achieve that cost effectively as well.
As an aside, we offer 1 year leases to people who do races and want to upgrade their bike annually.
Best regards
Paul
