Hi guys, I'm confused? Really confused! I'm looking to get a new car. 2 or 3 year lease. £2000 upfront. Nothing strange there?

So I goes to local vw dealer (stealer) to test drive the car I'm wanting. All is good. Sit down to work out finance and here is the CONFUSING bit: £2000 down and they want £500 a month for 2 year lease. Or £2000 down and 425 a month for 3 year deal. This includes vw servicing.

Well I almost fell out of the chair. I have a quote from a well known leasing company for exact same car/spec with servicing AND road tax for 2 years at £1600 upfront and 290 a month over 2 years. Both deals were for 8000 miles....

AM I MISSING SOMETHING??

HOW????

HELP!!

Please someone explain.. I think I'm going mad!!

Depends on the type of finance they were offering. Not only that but the leasing companies sometimes get special rates for certain vehicles.

Strange, as I thought the dealer would of been able to do the car cheaper.. Seeing as they made the car????

Still lost.. How can the people who build the car, have it on there forecourt not do it cheaper than a lease company??

Anyhow does not matter, I just want cheapest for ME, just a head scratcher!!

Dealerships do not build cars, they are franchised to sell them,  they are Brokers as well.

 With Overheads, showrooms, demonstrators, stock , staff,  workshops, Lots of costs in Buildings / land / etc etc .

They need to sell and make profits after covering costs.

They need Customers, repeat customers, sales of cars, finance, trade in to sell and make profits on etc.

 

The Dealership might well be supplying a car you arrange at a Broker for less than they will sell or lease it to you for.

 

If lower prices are the main thing to you, then Buy / Lease where ever you want to get it.

Some people like convenience of Local Dealers for Local People and pay a Premium to get that.

Many pay too much, and everyone pays to keep them in Business.

 

george

I think that covers it. Cheers George.

Just remember your deal with the lease Co will essentially be fixed.

If you want to change it in any way, they WILL sting you. Been there myself with Lex.

Also with leasing, after the 2 years you will have nothing, unlike the dealer finance where you'll have a car with most likely equity towards the next one