Last Chance to Order before the Price Increase
Each year there's a VED increase, but what we usually do is factor this increase in to any cars that are due to be delivered from 1st April onward. Cars delivered up to 31st March 2022, will be at the current VED levels.
VED is the abbreviated term of Vehicle Excise Duty and whilst this is included within the cost of a car lease agreement, it has to be factored in from the start as it's still a cost to the finance company.
Car manufactures have a price increase on their product at least once per year, many tie this in with the VED increase to minimize the impact and disruption to the finance systems.
If you place your order ahead of the price increase then manufacturers will usually price protect the vehicle until delivery so long as it is customer tagged and the order was placed ahead of the increase. To ensure price protection the vehicle can not be amended, so if you amend the colour or add an additional option on the car after the order has been placed then the vehicle will lose its price protection.
Car Leasing Price Increases
The price increase effective from April 2022 will be across the following manufacturers:-
- Audi
- BMW
- Cupra
- Kia
- Seat
- Skoda
- VW
- Volvo
The increase across some of the models is quite vast so placing your order ahead of this increase will save you money. For example, the price increase on a Kia EV6 is £750, which will make a great impact on the cost to lease a Kia.
The price increase on CUPRA Born V2 58 kWh 204PS is a massive £2,037.33. When we bear in mind that a lease is calculated based on the bridging amount between the purchase price and the resale value of the vehicle at the end of the agreement, the majority of this increase will be applied to the whole life cost of the lease. Yes of course the finance company will receive a discount which will equate to a percentage of the list price, but it's not 100% so the price increase will affect the cost of a car lease too.
Manufacturer price increases are usually percentage based, so the higher the basic list price of the vehicle, the higher the price increase will be. So it's worth getting in fast before the increase to secure the rate to lease an Audi or BMW.
Remember that the price increase is protected based on when the order is placed, not based on when delivery takes place. This allows you to secure the lower rate now even if your current lease car is not due to end until September 2022.
Securing your next lease car early ensures that you're not without a vehicle for any length of time. We can then arrange delivery of your new one either for the same day as the collection of your existing lease car or the very next day, whichever suits you.