Leading Car Finance Expert,
Graham
Hill, Explains How Manufacturers' Bonuses Can Be So
Large & Result In Low Lease Rates.
We have a unique and totally
different method of leasing in the UK
compared to the US
and to make matters worse few
people in the UK actually understand how it works. On numerous
occasions I’ve had
conversations with customers who have explained to me they
have negotiated a great
deal with a dealer and could I work out a lease for them based on their
negotiated price. The problem is that this isn’t the way it
works in the UK. They are describing the American method whereby a
customer
will consider a car and negotiate an on the road price with the dealer.
Once
the on the road price is agreed the customer will be provided with
several
options including leasing, HP and car loans. Simple and straight
forward.
However, in the UK,
where we subsidise cars for the rest of the world, the manufacturer
will decide
which cars he wants to move quickly and give huge bonuses to leasing
companies
in order to push those cars. The big discounts make the rates very
attractive
as these are passed on to the customers through the low lease rates.
The total
discounts, including manufacturer bonuses and dealer discounts, can be
up to
50% of the retail price but the cars must be leased, they
can’t (in theory) be sold for cash. When
I explain this to customers they appear not to believe me so for them,
and
possibly you, let me give you a few examples that explain how
manufacturers can give away
up to £12,000 in a UK
car and still retain a profit. Of course if the cars were sold for cash
the
super low prices would affect all of their main dealer used stock so
they hide
away the big bonuses inside the lease rate. In order to see what I mean
I’ve
made a video for you, click here on the video:
If you would like more information on leasing
or a quote on a car please contact me
on:
