Europe Leasing a Grenadier

[Cheshire cat]

Just having a browse at leasing the Grenadier in the UK. (I already own mine so for interest only).
They appear quite expensive compared to the new Defender. Wondering if this might be down to unknown residual values of the Grenadier, or the strength of Defender residual values so far. Perhaps a bit of both? Thoughts?

 

[Bruce]

At least part of it is interest rates. The finance charges are so high on cars right now that lease payments are being driven up. My wife looked at leasing another A4 when her period was up last year and the cost to lease was about 75% higher than it was before. Audi apparently is anticipating continued demand for their cars and capitalizing in that extra finance profit. In another approach, JLR, has chosen to subsidize finance costs to get more cars off the lot (they're struggling more than Audi) assuming that when they get cars back resale prices will still be high and they can double dip on the sales profit when they sell 3 year old defenders. Ineos, being new, may not want to incentivize short term ownership, or could be uncertain of the residual value in 3ish years. Then again, based on what we've seen, they may just not be organized enough to put together a good finance office to benefit customers.

 

[DCPU]

I thought Ineos had already set it's residual values?

 

[Bruce]

If they're offering leases then yes they must have set their residual value. The trick is residual value doesn't always mean the car will sell for that in 3 years. They may have set them low to ensure they make more on resale, which leads to higher lease payments. If they set them too high, the customer has lower payments, but if the car is worth less, the company eats it.

 

[DCPU]

Figures are in this thread:

Door ‘closed’ to new dealers at Ineos Automotive as firm begins roll-out of Grenadier

Sales and marketing boss Gary Pearson speaks exclusively to Car Dealer about brand’s plans https://cardealermagazine.co.uk/publish/door-closed-to-new-dealers-at-ineos-automotive-as-firm-begins-roll-out-of-grenadier/281966 Some interesting snippets of info in there: "Residual values for models...

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