PCH - worse deals than BCH for BMWs
Discussion
Everyone loves a Beemer.
Nothing shows your neighbours that you have made it in life more than a 218 active tourer. ( Inspired by, if not exactly quoted from TarpaTow)
As has been pointed out by a couple of people on the leasing thread the better deals from BMW are nearly always "Business only"
I believe that BMW only gives the best prices to "Business Only" Finance houses, or perhaps to the business section of their own Financial Services division to enable them to protect their margins on retail cars, through the higher margin PCP/ HP products their Franchisee retailers sell.
The CMA has a simple form by which you can "Notify an Issue to the Competition and Markets Authority"
and it is here.
Link
https://www.gov.uk/government/publications/report-...
Form ( .docx)
https://www.gov.uk/government/uploads/system/uploa...
I am raising the question about BMW (UK) Limited and BMW Financial Services (GB) Limited who are both subsidiaries of the same group.
Here is the waffly bit I am adding - Happy to take suggestions/total rewrite form anyone experienced in the sector.
Would it help of more than one person stated the same thing?
As I said before, any suggestions are more than welcome. I'm not a Martin Lewis type consumer crusader, but I may have gone for one of the cheap BMW deals had they been available to both Business and Private leasers.
If anyone else feels this is unfair, then perhaps you would also like to put a complaint in of a similar nature.
Nothing shows your neighbours that you have made it in life more than a 218 active tourer. ( Inspired by, if not exactly quoted from TarpaTow)
As has been pointed out by a couple of people on the leasing thread the better deals from BMW are nearly always "Business only"
I believe that BMW only gives the best prices to "Business Only" Finance houses, or perhaps to the business section of their own Financial Services division to enable them to protect their margins on retail cars, through the higher margin PCP/ HP products their Franchisee retailers sell.
Supply Of New Cars Order 2000 Section 5.1 said:
Prohibition of discrimination in respect of contract hire companies
5.—(1) It shall be unlawful for a supplier to discriminate in respect of the discount given for the supply of a new car to a contract hire company on the basis of whether the contract hire company supplies that new car to a fleet customer or not.
I am wanting to ask the question to the CMA whether by supplying business only Contract Hire Companies at preferential rates, they are contravening this section of the order.5.—(1) It shall be unlawful for a supplier to discriminate in respect of the discount given for the supply of a new car to a contract hire company on the basis of whether the contract hire company supplies that new car to a fleet customer or not.
The CMA has a simple form by which you can "Notify an Issue to the Competition and Markets Authority"
and it is here.
Link
https://www.gov.uk/government/publications/report-...
Form ( .docx)
https://www.gov.uk/government/uploads/system/uploa...
I am raising the question about BMW (UK) Limited and BMW Financial Services (GB) Limited who are both subsidiaries of the same group.
Here is the waffly bit I am adding - Happy to take suggestions/total rewrite form anyone experienced in the sector.
Would it help of more than one person stated the same thing?
I said:
Personal Contract Hire prices widely advertised by Brokers on BMW Motor cars are more expensive (even after taking account of VAT) than Business Contract Hire prices. Lots of “deals” are advertised as “Business Only". This appears to be in contradiction to the Supply of New Cars Order 2000 Section 5.1 I believe this is done to ensure that PCP and other personal finance methods other than Personal Contract Hire with a higher margin for BMW UK (and it’s financial services subsidiaries) are protected and is therefore controlling the market for new BMW cars on finance contrary to the best interests of the private consumer.
I will also be adding screen grabs of deals where the business and personal deals are more than 20% adrift on the same website.As I said before, any suggestions are more than welcome. I'm not a Martin Lewis type consumer crusader, but I may have gone for one of the cheap BMW deals had they been available to both Business and Private leasers.
If anyone else feels this is unfair, then perhaps you would also like to put a complaint in of a similar nature.
jjr1 said:
I will watch this with interest, as I also believed a personal lease could not be advertised at a worse rate than for a business, by the same supplier.
Very interesting reading here. http://www.am-online.com/news/2014/8/13/car-manufa...talksthetorque - I admire what you are trying to do and wish you good luck.
TJC46 said:
jjr1 said:
I will watch this with interest, as I also believed a personal lease could not be advertised at a worse rate than for a business, by the same supplier.
Very interesting reading here. http://www.am-online.com/news/2014/8/13/car-manufa...talksthetorque - I admire what you are trying to do and wish you good luck.
BMW have been the ones that I have noticed for this practice. Some of their business deals do look fantastic but if you enquire about them from a personal perspective they are not available at the same rate plus the VAT.
jjr1 said:
BMW have been the ones that I have noticed for this practice. Some of their business deals do look fantastic but if you enquire about them from a personal perspective they are not available at the same rate plus the VAT.
Do different terms and conditions apply?It's a bit of an issue with leasing that it's essentially a business product and it doesn't move well into the consumer environment - particularly the bit where you're generally stuck with the car even if your circumstances change. A business can (hopefully) cope with that, but it's more difficult for an individual consumer.
I have sent an email to marshalls mini in Bournemouth. This was indirectly through whatcarleasing.
Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
Edited by TJC46 on Thursday 31st August 16:54
TJC46 said:
I have sent an email to marshalls mini in Bournemouth. This was indirectly through whatcarleasing.
Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa Please Call £860.28 initial deposit £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa Please Call £1,285.42 initial deposit £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
I like it Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa Please Call £860.28 initial deposit £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa Please Call £1,285.42 initial deposit £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
Doubt you'll get a reply ... they'll probably add your email address onto their mailing list though!
TJC46 said:
I have sent an email to marshalls mini in Bournemouth. This was indirectly through whatcarleasing.
Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
I have had a reply and what an absolute load of buCopy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
Edited by TJC46 on Thursday 31st August 16:54
it it is.This is a mini dealership and he is saying they use 2 separate lease companies to put lease deals together, and that BMW are doing nothing wrong.
Here read for yourselves.....
Dear Mr Crawford
Thank you for your email.
I wanted to respond in person to explain the situation here, the lease offers below are not provided by the “manufacturer” they are supplied via 2 separate lease companies whom have the same levels of discount from the manufacturer & is therefore fair from a BMW Group perspective, further to this each & every lease company have differing residual values, internal cost’s etc of which all are contributing factors to the monthly rental cost.
The reason we have quotations added by 2 separate lease companies with differing cost’s is due to the fact that 1 of them is very strong on Business contract hire (and they only offer this product) & the other lease company offers both Business contract Hire & Personal contract hire, but this lease company is not as competitive on Business contract hire but they are competitive on Personal contract Hire versus others in the market which is why we use them to advertise our Personal contract hire offers.
I hope this explains the issue surrounding what is publicised
ABSOLUTE LOAD OF SH
TE.will be replying later today so watch this space !
I replied this morning with this.......
Darren
Thank you for your prompt response.
This is nothing personal against you or Marshalls Mini, Bournemouth but your response is vague to say the least.
So you are a BMW Mini dealership, who obviously are supplied by BMW with your stock, yet you out -source the supply, and business, of lease vehicles.
If this is the case, then could you supply me with the “names” and details of the two lease companies you use.
You say they are 2 separate companies no 1 being strong on business deals only, the 2nd company offer both business and personal contract hire.
Therefore the 2nd company should be doing personal deals at business rates plus the vat. If not why not.
In relation to the 2nd lease company you use, and I quote “differing residual values, internal cost’s etc. of which all are contributing factors to the monthly rental cost.” Does not apply as it is one and the same company, with the same costs.
I think we both know that BMW are flouting the law, and the dealerships that are tied to them are playing the same game.
If I was to arrange a lease deal with yourselves who would be financing it…….Not BMW finance I hope as that would really take some explaining !
I have a VW Scirocco on a personal lease deal at the moment. This was through a VW dealership direct and the finance is through VWFS.
The cost to me was identical [plus the vat] of a business deal so VW at least are complying with the law.
These emails are being posted on the largest motoring forum in this country, so you have an expectant audience for your replies.
Regards
Tom Crawford.
Darren
Thank you for your prompt response.
This is nothing personal against you or Marshalls Mini, Bournemouth but your response is vague to say the least.
So you are a BMW Mini dealership, who obviously are supplied by BMW with your stock, yet you out -source the supply, and business, of lease vehicles.
If this is the case, then could you supply me with the “names” and details of the two lease companies you use.
You say they are 2 separate companies no 1 being strong on business deals only, the 2nd company offer both business and personal contract hire.
Therefore the 2nd company should be doing personal deals at business rates plus the vat. If not why not.
In relation to the 2nd lease company you use, and I quote “differing residual values, internal cost’s etc. of which all are contributing factors to the monthly rental cost.” Does not apply as it is one and the same company, with the same costs.
I think we both know that BMW are flouting the law, and the dealerships that are tied to them are playing the same game.
If I was to arrange a lease deal with yourselves who would be financing it…….Not BMW finance I hope as that would really take some explaining !
I have a VW Scirocco on a personal lease deal at the moment. This was through a VW dealership direct and the finance is through VWFS.
The cost to me was identical [plus the vat] of a business deal so VW at least are complying with the law.
These emails are being posted on the largest motoring forum in this country, so you have an expectant audience for your replies.
Regards
Tom Crawford.
So glad this is getting some traction! This was my email to the CMA:
Dear Sir/Madam,
I am writing to complain about BMW UK Ltd and BMW financial services Ltd and their unfair practice of dictating finance lease terms based on occupation. BMW are currently charging more for their 4 series gran coupe product when it is offered under a personal contract hire vs a business contract hire.
If one was self employed, they could claim the lower business contract hire price. However, if one was employed, they are forced to pay the higher personal contract hire price.
I believe this is in breach of the 'Supply of New Cars Order' which outlaws car manufacturers charging different rates when supplying to lease companies depending on whether the car is going to a private motorist or a business.
Many BMW dealers advertise their lease offers on the whatcar leasing website. See below for a link to an example dealership's offer for a 4 series gran coupe:
https://www.whatcar.com/car-leasing/deals/bmw/4-se...
Under business contract hire, for a 24 month contract with 8,000 miles allowed per year the price is:
£636.54+VAT (£763.85 incl. VAT) initial payment, £212.18+VAT (£254.62 incl. VAT) monthly payment. Total over 2 years = £6620.02 including VAT.
Under personal contract hire with identical terms (24 month contract, 8000 miles per year), the price is:
£3048.48 initial payment, £338.72 monthly payment, all inclusive of VAT. Total over 2 years = £10839.04 including VAT.
The difference between the business contract hire and personal contract hire prices are an astounding £4219.02!
I have attached images in case they get taken down by the BMW dealer before you get to see this complaint. There are also other dealers operating the same practice which can be named below:
1) Berry Heathrow BMW
2) Broad Oak Canterbury BMW
3) Bowker BMW
4) Eastern BMW
5) Lookers BMW
I look forward to this complaint being investigated and will be happy to provide any more information if needed.
Dear Sir/Madam,
I am writing to complain about BMW UK Ltd and BMW financial services Ltd and their unfair practice of dictating finance lease terms based on occupation. BMW are currently charging more for their 4 series gran coupe product when it is offered under a personal contract hire vs a business contract hire.
If one was self employed, they could claim the lower business contract hire price. However, if one was employed, they are forced to pay the higher personal contract hire price.
I believe this is in breach of the 'Supply of New Cars Order' which outlaws car manufacturers charging different rates when supplying to lease companies depending on whether the car is going to a private motorist or a business.
Many BMW dealers advertise their lease offers on the whatcar leasing website. See below for a link to an example dealership's offer for a 4 series gran coupe:
https://www.whatcar.com/car-leasing/deals/bmw/4-se...
Under business contract hire, for a 24 month contract with 8,000 miles allowed per year the price is:
£636.54+VAT (£763.85 incl. VAT) initial payment, £212.18+VAT (£254.62 incl. VAT) monthly payment. Total over 2 years = £6620.02 including VAT.
Under personal contract hire with identical terms (24 month contract, 8000 miles per year), the price is:
£3048.48 initial payment, £338.72 monthly payment, all inclusive of VAT. Total over 2 years = £10839.04 including VAT.
The difference between the business contract hire and personal contract hire prices are an astounding £4219.02!
I have attached images in case they get taken down by the BMW dealer before you get to see this complaint. There are also other dealers operating the same practice which can be named below:
1) Berry Heathrow BMW
2) Broad Oak Canterbury BMW
3) Bowker BMW
4) Eastern BMW
5) Lookers BMW
I look forward to this complaint being investigated and will be happy to provide any more information if needed.
Edited by MrF193 on Friday 1st September 10:48
TJC46 said:
I have had a reply and what an absolute load of buit it is.
This is a mini dealership and he is saying they use 2 separate lease companies to put lease deals together, and that BMW are doing nothing wrong.
Here read for yourselves.....
Dear Mr Crawford
Thank you for your email.
I wanted to respond in person to explain the situation here, the lease offers below are not provided by the “manufacturer” they are supplied via 2 separate lease companies whom have the same levels of discount from the manufacturer & is therefore fair from a BMW Group perspective, further to this each & every lease company have differing residual values, internal cost’s etc of which all are contributing factors to the monthly rental cost.
The reason we have quotations added by 2 separate lease companies with differing cost’s is due to the fact that 1 of them is very strong on Business contract hire (and they only offer this product) & the other lease company offers both Business contract Hire & Personal contract hire, but this lease company is not as competitive on Business contract hire but they are competitive on Personal contract Hire versus others in the market which is why we use them to advertise our Personal contract hire offers.
I hope this explains the issue surrounding what is publicised
ABSOLUTE LOAD OF SHTE.
will be replying later today so watch this space !
Im sure the two separate companies might beit it is.This is a mini dealership and he is saying they use 2 separate lease companies to put lease deals together, and that BMW are doing nothing wrong.
Here read for yourselves.....
Dear Mr Crawford
Thank you for your email.
I wanted to respond in person to explain the situation here, the lease offers below are not provided by the “manufacturer” they are supplied via 2 separate lease companies whom have the same levels of discount from the manufacturer & is therefore fair from a BMW Group perspective, further to this each & every lease company have differing residual values, internal cost’s etc of which all are contributing factors to the monthly rental cost.
The reason we have quotations added by 2 separate lease companies with differing cost’s is due to the fact that 1 of them is very strong on Business contract hire (and they only offer this product) & the other lease company offers both Business contract Hire & Personal contract hire, but this lease company is not as competitive on Business contract hire but they are competitive on Personal contract Hire versus others in the market which is why we use them to advertise our Personal contract hire offers.
I hope this explains the issue surrounding what is publicised
ABSOLUTE LOAD OF SH
TE.will be replying later today so watch this space !
BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
Jordan210 said:
Im sure the two separate companies might be
BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
What a coincidence these two entirely unrelated companies happen to have sited themselves on the same road, in the same town. BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
esxste said:
Jordan210 said:
Im sure the two separate companies might be
BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
What a coincidence these two entirely unrelated companies happen to have sited themselves on the same road, in the same town. BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
Jordan210 said:
Im sure the two separate companies might be
BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
That was my thought too - both companies are wholly owned subsidiaries of BAYERISCHE MOTOREN WERKE AG according to Companies House.BMW Financial Services (GB) Limited, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB.
Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire, GU14 0FB
Challo said:
They are all on one campus along with MINI UK, and BMW UK. Alphabet is owned by BMW but run as a separate company.
BMW have 24 companies registered to Summit one. Most of them in one building. But back on topic. Clearly this is a way around rules and designed to rip of consumers.
TJC46 said:
I replied this morning with this.......
Darren
Thank you for your prompt response.
This is nothing personal against you or Marshalls Mini, Bournemouth but your response is vague to say the least.
So you are a BMW Mini dealership, who obviously are supplied by BMW with your stock, yet you out -source the supply, and business, of lease vehicles.
If this is the case, then could you supply me with the “names” and details of the two lease companies you use.
You say they are 2 separate companies no 1 being strong on business deals only, the 2nd company offer both business and personal contract hire.
Therefore the 2nd company should be doing personal deals at business rates plus the vat. If not why not.
In relation to the 2nd lease company you use, and I quote “differing residual values, internal cost’s etc. of which all are contributing factors to the monthly rental cost.” Does not apply as it is one and the same company, with the same costs.
I think we both know that BMW are flouting the law, and the dealerships that are tied to them are playing the same game.
If I was to arrange a lease deal with yourselves who would be financing it…….Not BMW finance I hope as that would really take some explaining !
I have a VW Scirocco on a personal lease deal at the moment. This was through a VW dealership direct and the finance is through VWFS.
The cost to me was identical [plus the vat] of a business deal so VW at least are complying with the law.
These emails are being posted on the largest motoring forum in this country, so you have an expectant audience for your replies.
Regards
Tom Crawford.
The latest reply to the above-Darren
Thank you for your prompt response.
This is nothing personal against you or Marshalls Mini, Bournemouth but your response is vague to say the least.
So you are a BMW Mini dealership, who obviously are supplied by BMW with your stock, yet you out -source the supply, and business, of lease vehicles.
If this is the case, then could you supply me with the “names” and details of the two lease companies you use.
You say they are 2 separate companies no 1 being strong on business deals only, the 2nd company offer both business and personal contract hire.
Therefore the 2nd company should be doing personal deals at business rates plus the vat. If not why not.
In relation to the 2nd lease company you use, and I quote “differing residual values, internal cost’s etc. of which all are contributing factors to the monthly rental cost.” Does not apply as it is one and the same company, with the same costs.
I think we both know that BMW are flouting the law, and the dealerships that are tied to them are playing the same game.
If I was to arrange a lease deal with yourselves who would be financing it…….Not BMW finance I hope as that would really take some explaining !
I have a VW Scirocco on a personal lease deal at the moment. This was through a VW dealership direct and the finance is through VWFS.
The cost to me was identical [plus the vat] of a business deal so VW at least are complying with the law.
These emails are being posted on the largest motoring forum in this country, so you have an expectant audience for your replies.
Regards
Tom Crawford.
Dear Mr Crawford
The cars are being sold by BMW Group (via a direct sales channel) to the lease companies, Arval & Alphabet in this instance but do note that any lease company would purchase the vehicles at the agreed discounted value that is agreed between both BMW Group & the leasing companies, it is up to the lease companies to set their own cost’s & residual values for the cars they purchase from any manufacturer & these values do differ between all leasing companies.
Our business contract hire rates for MINI are the most competitive via Alphabet, Alphabet do not currently offer PCH to retailers but this is in final discussions & soon to go live, we want this as much as our customers.
Our PCH offers are via Arval, Arval do offer BCH & PCH (in the same way VWFS do) but the BCH rates are not as competitive as Alphabets & this is the reason we split them, on top of the fact Alphabet do not, as yet offer PCH.
BMW in my opinion are not doing anything wrong, quite the opposite, they are offering the cars for sale to the lease companies at the same discounted cost.
If you were to lease via a business we would place your business with Alphabet as that would be the best offer on a lease vehicle we could offer to you.
If you were to lease via Personal Contract Hire we would place your business with Arval as that would be the best offer on a lease vehicle we could offer to you & the only lease company we as a dealer have access to that offers PCH
If you find this to be unfair I would refer you to the FCA for absolute clarity but I do believe what I have explained to be true.
Kind regards
TJC46 said:
TJC46 said:
I have sent an email to marshalls mini in Bournemouth. This was indirectly through whatcarleasing.
Copy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
I have had a reply and what an absolute load of buCopy is below.........awaiting a reply.
Good afternoon
Would somebody please explain to me the following.
A mini cooper 1.5 on a business lease is
36 months (6+35) 8,000mpa / £860.28 initial deposit / £143.38 (+VAT) per month
Yet on a personal lease it is
36 months (6+35) 8,000mpa / £1,285.42 initial deposit / £214.24 (Inc VAT per month
So a personal lease has a larger initial deposit and costs more per month.
To comply with the present law the personal cost to lease should be no more than the business cost plus the VAT.
Would somebody please explain?
Link to something you may find of interest
http://www.am-online.com/news/2014/8/13/car-manufa...
Edited by TJC46 on Thursday 31st August 16:54
it it is.This is a mini dealership and he is saying they use 2 separate lease companies to put lease deals together, and that BMW are doing nothing wrong.
Here read for yourselves.....
Dear Mr Crawford
Thank you for your email.
I wanted to respond in person to explain the situation here, the lease offers below are not provided by the “manufacturer” they are supplied via 2 separate lease companies whom have the same levels of discount from the manufacturer & is therefore fair from a BMW Group perspective, further to this each & every lease company have differing residual values, internal cost’s etc of which all are contributing factors to the monthly rental cost.
The reason we have quotations added by 2 separate lease companies with differing cost’s is due to the fact that 1 of them is very strong on Business contract hire (and they only offer this product) & the other lease company offers both Business contract Hire & Personal contract hire, but this lease company is not as competitive on Business contract hire but they are competitive on Personal contract Hire versus others in the market which is why we use them to advertise our Personal contract hire offers.
I hope this explains the issue surrounding what is publicised
ABSOLUTE LOAD OF SH
TE.will be replying later today so watch this space !
As a dealer you have no sway over what is classed as a business or personal deal. But you do know that you can't propose a private individual on a business deal as the underwriters will reject it.
I'm really not sure what you expect them to say to you? If you had written to me my reply would be to simply refer you to customer services of the leasing company in all honesty!
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