We all know the hardship that the industry has suffered due to delays with parts having a knock on effect to build weeks, but we are pleased to announce that all car leasing special offers are back with a bang!
So what makes a special offer leasing deal different to a regular lease deal?
A regular lease deal, takes the on the road of the vehicle and residual value of the vehicle at the end of the contract and calculates your payments based on the bridging amount between the two figures. Based on the amount the finance company purchase they usually receive a set discount across all of the models that manufacturer produce.
A special offer is calculated using the same method, but it's based on the models that the manufacturer have excess stock of, or models that they want to produce and clear parts ready for the newer face-lift model being introduced. The manufacturer will usually approach finance companies, franchise dealers and brokers and offer a set amount of vehicle for a fixed discounted price. They usually implement conditions of sale, for example - must be registered by a certain date and subject to a minimum quantity. These cars are usually batch ordered and it's not uncommon for these cars to be discounted by up to 35% of their usual list price.
All car leasing special offers can offer outstanding value, we've known cars such as a VW Golf R lease, attract a lease rate which is £150 per month cheaper than leasing a car through another funder at the same time, because of the difference between the "batch deal" rate and the standard rate. Residual values play a huge role in this also, some funders will set a residual value lower than the information from Cap data if they feel that they have too many of these motors coming back to them at the same time.
As contract hire is a fixed funding method, the funders know in advance exactly what stock they have coming back to them at the end of the agreement and what date this will be.
Sometimes at the same time the leasing company will agree a buy back deal with the manufacturer or Dealer group so they know exactly how much the cars will be re-sold for at the end of the contract.
During the pandemic batch deals were suspended as stock was an issue. Two years on, manufacturers are using a similar method to focus on vehicles that can be built within a timely lead time and reducing the support levels on models still experiencing build constraints.
Car leasing works great, if you are flexible with the vehicle you intend to lease, For example, if you want to lease an executive large saloon from a premium manufacturer; it's good to remain open-minded and consider the Audi A6, BMW 5 Series and Mercedes E Class Saloon as at least one of these manufacturers will have a supported campaign on their product. The difference between the cost to lease each of the modes could be over £100 per month.
We're so pleased that all car leasing special offers have returned. Keep visiting our page regularly, share our deals with your friends and sign up to our mailing list. At a time when costs are soaring, it's great to make savings where we can.