Police killing us again!

**blackdog** · 23rd April 2010, 17:08

a lease agreement is exactly the same as a hire purchase, with the exception that a price is agreed on what the vehicle will be worth in three years time, and that residual value is what would be left on an hp as a balloon payment to keep the car. (ie/ the cars wholesale value is the same as the balance left on the hp)

**Coldrider** · 23rd April 2010, 17:08

Not necessarily, Holden competes against Ford to get the contracts, the contract will only make the leasor rich, not the Government or vehicle supplier.
A vehicle worth is less than half its retail price (to make).

**blackdog** · 23rd April 2010, 17:16

no one ever pays retail.

what a vehicle costs to make is totally irrelevant, whereas wholesale value is not.

**Coldrider** · 23rd April 2010, 17:17

Originally Posted by theblackstig

no one ever pays retail.

what a vehicle costs to make is totally irrelevant, whereas wholeasle value is not.

Capital budgeting is not covered in 101.

**Mom** · 23rd April 2010, 17:42

Fleet Lease. No one owns fleets of vehicles anymore.

**Coldrider** · 23rd April 2010, 17:53

Originally Posted by miloking

Hmm interesting, didnt know that...point is though, that epica is still cheaper to buy/lease right?

Only to the average person.
There will be reliabilty and performance standards to met be met as well, along with associated penalties of non conformance and breaches of contract.

**miloking** · 23rd April 2010, 18:04

Originally Posted by Coldrider

Only to the average person.
There will be reliabilty and performance standards to met be met as well, along with associated penalties of non conformance and breaches of contract.

Fair enough, but ok do you think Epica would be less reliable? (i guess could be since its cheaper)...but what do you mean by performance standard? Top speed? 0-100? ...ummm Turning circle?

**Coldrider** · 23rd April 2010, 18:12

Originally Posted by miloking

Fair enough, but ok do you think Epica would be less reliable? (i guess could be since its cheaper)...but what do you mean by performance standard? Top speed? 0-100? ...ummm Turning circle?

Dunno but there would be a high criteria, but obviously the british police and others are happy with small cars.
I think if the commodore and epica were put on a 3 year life cycle discounted cashflow model there wouldn't be much difference in the lease option, and holden would put the Commy up as a loss leader anyway.
But hey, how is this related to the topic again?

**blackdog** · 23rd April 2010, 18:14

the savings in fuel consumption alone would add up to millions annually

**miloking** · 23rd April 2010, 18:16

Originally Posted by Coldrider

Dunno but there would be a high criteria, but obviously the british police and others are happy with small cars.
I think if the commodore and epica were put on a 3 year life cycle discounted cashflow model there wouldn't be much difference in the lease option, and holden would put the Commy up as a loss leader anyway.
But hey, how is this related to the topic again?

I dont know actualy i didnt start this police "cage" topic...something to do with "proving blame->on board cameras->cost-> buy a cheaper car"

**bogan** · 23rd April 2010, 18:18

Originally Posted by miloking

I dont know actualy i didnt start this police "cage" topic...something to do with "proving blame->on board cameras->cost-> buy a cheaper car"

I'm still waiting to hear what the price of cameras or ANPR systems actually are.

**Coldrider** · 23rd April 2010, 18:19

Originally Posted by theblackstig

the savings in fuel consumption alone would add up to millions annually

but that would be just one criteria, would the leasor or manufacturer back full performance up to 120,000kms with donut munchers abusing the shit out of the cars, suspension setups, load carrying ability etc, idling stationary for so long the engines cook etc

**miloking** · 23rd April 2010, 19:47

Originally Posted by Coldrider

but that would be just one criteria, would the leasor or manufacturer back full performance up to 120,000kms with donut munchers abusing the shit out of the cars, suspension setups, load carrying ability etc, idling stationary for so long the engines cook etc

true, they do get some serious beating those commodores...epica would probably fall apart. Not to mention they need to comfortably fit 3 large rapists/bank robbers on back seat..