Car Leasing Special Offers

Different types of car leasing special offers

New Model Launch

When a car manufacturer launches a new model for sale sometimes the vehicle is heavily discounted.  The manufacturers do this so that they can get significant numbers of cars out on the roads as quickly as possible.  The reason for this is so that the new model gets noticed and as well as helping the manufacturer boost early sales the cars purchased/leased are mobile adverts and it is hoped that they attract enough attention for others to find out more about them.
This type of promotion was done very successfully early 2020 with the new Kia xCeed which worked out extremely good value for money compared to other vehicles in its class.

End of Production

When a car design has reached the end of the road and is to become obsolete or replaced with a new facelift often manufacturer's offer subsidy to clear all outstanding old model cars. This happens very frequently as manuacturers like to keep their cars looking fresh as well as constantly trying to improve co2 emissions and make their cars more desirable. The most noticeable recent re-design is the Nissan Juke which now looks very different to the design that has been selling like hot caked since its introduction at the Geneva Motor Show back in 2010.

Surplus Stock

Surplus stock does not happen so much anymore. Remember the fields and airports and docks filled with thousands of new cars back in the days where production was ahead of demand.  Times when there were large overspills of vehicles caused manufacturers pressure to sell as quickly as possible to avoid vehicles standing too long, getting damaged plus the land rental was probably not cheap.  The sooner these vehicles were taken to car dealerships the better and car sales sites could earn a lot of additional bonus for shifting high numbers of cars.

Volume Bonus

Leading on from the above - volume bonus was and still is extremely important to car sales sites.  The more cars the dealership sells the more bonuses they get from the vehicle manufacturer.  The more money the dealerships earn the more discounts they can offer on the sale price and so the circle of success turns. Bonus payments are tiered and so the better the dealership do the cheaper they become and the more they can sell. At Lease World we only work with the very top car dealers ensuring that we are offering our customers cars at maximum discount resulting in cheaper lease payments.

Boost Sales

Occasionally a car manufacturer will notice a downward trend in sales for a particular model.  This can be due to a number of reasons for example a 97% downturn in new car sales due to covid-19, a recession, fresh competition, bad press such as reviews from car journalists or shows such as Top Gear. When this happens manufacturers reduce prices to make their cars more attractive to the consumer.  Actually this is not quite true when it comes to the coronavirus as there are no cars to sell due to factory shutdowns and ceased car productions across the world.

Pricing Error

Pricing errors don't occur very often and when they do they are usually corrected very quickly.  A pricing error occurs when a human within a leasing company incorrectly keys an overly high residual value against a vehicle thus making the vehicle depreciation seem much less.  A car that should be worth £10,000 in 3 years' time is now suddenly worth £15,000 which creates a saving of £5,000 or approximately £139 per month reduction on a 3 year lease. Of course the car is not worth more it is a simple typing error that has slipped through the net, yet the leasing companies are often obliged to honour errors if a customer has ordered even though they will be the ones making a loss.

Pre-registered cars

In relation to volume bonus and how important it is to car dealers, sometimes a dealer will take a risk by registering a number of cars (sometimes hundreds of cars) prior to the volume bonus deadline to achieve their sales/bonus target. They then sell the cars as new but pre-registered cars - usually at a heavily discounted price using some of the additional volume income to subsidise the cars. Pre-registered cars are very popular at Lease World as we like to see our customers getting a great deal.

Multi-Unit Commitment

At the moment the motor industry is not in a great place and there are very few companies willing to commit to a multi-unit deal.  A multi-unit deal is where a car dealer or a leasing company or a finance broker commit to purchase and sell an agreed number of vehicles over an agreed period at an agreed discounted price.  This is/was a good way to give the committed party an edge over the competition with price but with the risk that if the agreed amount of cars [units] are not sold that the bonus/additional support was reduced or removed potentially leaving someone with a load of cars to shift at regular price or in debt.