Select car leasing V most main dealers

[Franky Four Fingers]

My current business lease is due to expire this October and I’ve had a pair of Hybrid Evoques on order since last November due mainly to the lead time. In April we decided to change accountants because of the very poor performance of the previous one and the first things he advised us to do was to go LTD
This of course meant that we would now benefit from the 100% benefits against corporation tax and 50%VAT on electric vehicles, a headline grabber thats too good to ignore. First thing we did was to cancel our new leases which had not gone live and to start searching for the new electric cars.
Having already driven the majority of electric cars last year i already knew where we were heading which was the Merc EQA. I also considered the Mach E, Polestar, I-Pace, EQC to mention a few. The common theme to all of these when speaking to the dealers was that id stand better chance of meeting Lord Lucan riding sidesaddle on Shergar. Id be looking at mainly a wait of around 6-18 months depending on what i went for and some of them were their best guesses.
It seems that Mercedes’ aren’t releasing vehicles but pools of vehicles come through which are handed out to dealers randomly. Not knowing which way to turn i decided to look at lease companies…..what a difference.
It seems that the likes of Select car leasing have many in stock (at least 300) and if you consider the EQA the monthly’s are £200 cheaper than the dealer.
Questioning how they can do this and the answer was rather simple…..they have huge buying power, they lease around 700 vehicles a month which is likely to be 2 years worth of new vehicles for most dealers. Due to this they can set the leasing prices at well under the dealers.
I just find it ridiculous that the dealers who have invested in the brand yet are playing second fiddle to the big leasing boys.
So in short if youre struggling to find a car, whether it be electric or not and you’re considering leasing try the big boys first.

[Byron]

Difference is that a broker searches for the most competitive finance company and the dealer has to use the captive finance house I.e manufacturer owned.

This allows the broker to place the finance anywhere they want as the buyer is purely focused on a monthly rental.

Broker will always typically only promote Contract hire whereas a dealer will provide a range of packages tailored to the customers wants/needs.

Current production and supply is complicated and dealers will most likely be picking and choosing who they sell their cars to instead of kissing a car away to a buyer who has no part ex, doesn’t want any insurance products, won’t buy any dealer options, won’t return for in-life aftersales and won’t buy from them again aka: the broker customer.

Your observation of franchised dealers being priced out is absolute reality. some manufacturers are proactively blocking their cars from being sold through brokers as to try and help protect the main dealers.

[Boss13]

When you say select have huge buying power what do you mean by that?

They don’t buy the cars from the manufacturer do they?

Don’t the leasing companies simply facilitate a deal with a main dealer. That was what I saw from my experience. When I have leased it had come from a main dealer. They drove it to me. So I assumed the leasing company was buying it from the main dealer they partner with on that deal.

Assume there are other scenarios and other ways this could happen. Would be interesting to know.

[Franky Four Fingers]

When you say select have huge buying power what do you mean by that?

They don’t buy the cars from the manufacturer do they?

Don’t the leasing companies simply facilitate a deal with a main dealer. That was what I saw from my experience. When I have leased it had come from a main dealer. They drove it to me. So I assumed the leasing company was buying it from the main dealer they partner with on that deal.

Assume there are other scenarios and other ways this could happen. Would be interesting to know.

According to Select they have no connection with any dealer, they deliver the vehicle directly to you.

[RJM25R]

Be aware that if it’s the 2 wheel drive EQA250 They are offering its because an increased range version (badged the EQA250+) is in production for Sept/oct delivery.

[Franky Four Fingers]

Be aware that if it’s the 2 wheel drive EQA250 They are offering its because an increased range version (badged the EQA250+) is in production for Sept/oct delivery.

cheers, no its a 350 M4 whatever that is

[jwg663]

According to Select they have no connection with any dealer, they deliver the vehicle directly to you.

That makes me wonder who supplies the cars to them?

[Franky Four Fingers]

That makes me wonder who supplies the cars to them?

After speaking to someone else today they get most from the manufacture and “some from dealers” seeing as dealers have bugger all id guess most come direct from Merc.

[Byron]

After speaking to someone else today they get most from the manufacture and “some from dealers” seeing as dealers have bugger all id guess most come direct from Merc.

Any current stock MB cars will be from dealer without a funder taken from 'free release stock'.

Select will wrap their own funder around it with that funder paying the dealer invoice.