Q&A Americas Final Price

[Javier]

Final Price.

I just pre-ordered a Grenadier in the U.S. However, there is some language in the terms & conditions that scare me.
Seem to indicate the final price, EVEN FOR RESERVATION HOLDERS, is determined by the dealer! If true, the dealer can tack on any mark-up they want ($10K, 20K, etc.)
I attended the event in Tampa and the host specifically said reservation holders will only have to pay MSRP. Have they reneged on this promise?

 

[GoneNative]

I seriously doubt there will be lower than market APR offers in the USA. That requires an agreement with a major financial operation, and serious cash from Ineos to "buy down the rate" as the incentive for the purchaser. There is no reason to do that when demand is high for the vehicle and people in the price bracket have cash or their own banking finance options.

Leasing is even harder to set up, as the financing company needs residual info, which doesn't exist, and therefore will require Ineos to guarantee a residual by giving the bank cash in addition to the risk of the bank holding the title to an unknown depreciating asset. Again, tons of money to set up to facilitate sales and the rates are never that great. Look at leasing "deals" for other boutique British brands and they are not good deals. Every couple of years the boutique British brands will juice sales by dumping year end inventory if totally desperate for sales (Aston Martin/McLaren) and burn the bridge with their financial services providers (Ally and Aston Martin for example).

Source for this info is me, I was tasked with setting up leasing and financing for a boutique British car brand in the USA not that long ago, in that case for Lotus.

 

[DDG]

I seriously doubt there will be lower than market APR offers in the USA. That requires an agreement with a major financial operation, and serious cash from Ineos to "buy down the rate" as the incentive for the purchaser. There is no reason to do that when demand is high for the vehicle and people in the price bracket have cash or their own banking finance options.

Leasing is even harder to set up, as the financing company needs residual info, which doesn't exist, and therefore will require Ineos to guarantee a residual by giving the bank cash in addition to the risk of the bank holding the title to an unknown depreciating asset. Again, tons of money to set up to facilitate sales and the rates are never that great. Look at leasing "deals" for other boutique British brands and they are not good deals. Every couple of years the boutique British brands will juice sales by dumping year end inventory if totally desperate for sales (Aston Martin/McLaren) and burn the bridge with their financial services providers (Ally and Aston Martin for example).

Source for this info is me, I was tasked with setting up leasing and financing for a boutique British car brand in the USA not that long ago, in that case for Lotus.

Thank you for this expert insight. I had to read it twice because my brain is slow; but this makes perfect sense.

 

[IG_LA]

I would expect a rock solid “special APR” in conjunction with honoring MSRP. Don’t forget, early adopters help get the product out into the wild, for others to see, thus increasing future demand. It would be wise for corporate to help incentive early adopters to keep their reservations, with a good APR %, as it will help the factory sell more units. Imagine the inverse, where the Grenadier fails to launch into the hands of consumers, thus quickly becoming forgotten about. It happens all the time in the automotive world when products launch into the market place with much fanfare only to then flop.

I think we are all going to be very happy, at the end of the day, for being early adopters with guaranteed MSRP plus hopefully attractive APR rates for the American Market place!

I hope the IG God grants us your prediction. All about it!

 

[Boston Boy]

I am very interested in how the promised European delivery program will work. With Volvo, it was pretty separate from the Dealer.

 

[anand]

I am very interested in how the promised European delivery program will work. With Volvo, it was pretty separate from the Dealer.

That will be somewhat down the line, they openly stated it wouldn't be for the initial run of MY24 vehicles (reservation holders and early non-reservation pre-orders). If I had to guess, I would say that European delivery will be available for MY26 and onward

 

[Mr.Espresso]

I seriously doubt there will be lower than market APR offers in the USA. That requires an agreement with a major financial operation, and serious cash from Ineos to "buy down the rate" as the incentive for the purchaser. There is no reason to do that when demand is high for the vehicle and people in the price bracket have cash or their own banking finance options.

Leasing is even harder to set up, as the financing company needs residual info, which doesn't exist, and therefore will require Ineos to guarantee a residual by giving the bank cash in addition to the risk of the bank holding the title to an unknown depreciating asset. Again, tons of money to set up to facilitate sales and the rates are never that great. Look at leasing "deals" for other boutique British brands and they are not good deals. Every couple of years the boutique British brands will juice sales by dumping year end inventory if totally desperate for sales (Aston Martin/McLaren) and burn the bridge with their financial services providers (Ally and Aston Martin for example).

Source for this info is me, I was tasked with setting up leasing and financing for a boutique British car brand in the USA not that long ago, in that case for Lotus.

I highly doubt also, that corporate will buy down the rate, wether we are talking about LIBOR or IntraBank / Federal Fund Rate. I would anticipate something like Tesla, a partnership with a 3rd party lender, to help move metal. If the demand is so high, perhaps they don’t need to care!!! I guess we will all find out soon enough!!! Roughly 82% of USA car buyers finance, so I am sure Ineos has given the matter some thought.

 

[Mr.Espresso]

I hope the IG God grants us your prediction. All about it!

By attractive I mean ~6% ish give or take for a well qualified buyer!