Firstly it depends on just where you look in terms of price, there are some fairly expensive cars on the scheme with very reasonable advance payments. I am sure you will appreciate people’s choice of car rarely comes down to a calculated “best value” but includes a significant emotive element. I don’t suggest that cost is ignored but not to the extent of simply achieving best value against all other scheme cars. What will be a factor will be not necessarily actual but perceived value. If people were to choose simply on “best value” they would select the most expensive vehicle with the lowest advance payment as per your example. The fact that some people would not even pass a credit check to enable them to lease a vehicle, for them access to the scheme is their value. Other people are simply not prepared/ not in a position. to pay any advance payment.
Secondly you overlook the “cost” of the £3k deposit, the ROI or the deferred cost if you like.
I think you should bear in mind the notion behind the scheme, the fact that many people are unable to simply “find” £3k.
As the rental payment on most cars uses 100% of benefit, there will clearly be a calculation of best “value” to arrive at your notion of “the facts”. Where your facts loose traction is with regards to the published price of the car. So the £40k you use as an example, this in itself is a moving feast. All vehicles have a quoted list price/OTRC. The reality however is that this price remains as quoted despite the fact that the vehicle will be being discounted. The level of discount will vary but largely increase with product lifecycle (and other factors). MB do adjust advance payments but not accurately to reflect the vehicles “real” price. Once again risk appetite plays a role. Thus identifying best value becomes almost impossible & choosing a vehicle via this method alone, a rare occurrence.
I am confused re your calculations, higher rate award is something like £250 per month. You state £10k per annum, I believe you intended this to read £10k over the whole term, ie 3 years. Paying 50% of a vehicles new value per annum on Contract Hire would be outrageous.
I guess the point I was trying to imply (& did so poorly) is that a proportion people seem to expect something for nothing, they want the £40k car for £500 advance rental & complain when this isn’t so. If someone is unhappy that the advance payment is £3k, they have many other choices. One of those choices is simply to look at a cheaper, sorry more affordable car. Like everything else the scheme has to change in line with the market & unfortunately this mostly results in an increase in cost.