The Secret Of Leasing – Amazing Video | The Best Car Finance Blog In The World

The Secret Of Leasing – Amazing Video

Tuesday, 27. October 2009

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: http://www.videotrainingonthenet.com/leasetrainingUSprices2.html By Graham Hill