Lease car question

[Teebs]

Morning

Just a quick question, when a lease company purchases a vehicle, do they get discount from the dealership (like a retail customer might) or do they pay full retail and claim any retrospective discounts from the manafacturer?

Make sense?

[Nickp82]

Generally speaking, the discount will be given up front so the lease company pay the discounted price.

If the vehicle is supplied through a dealer, the level of discount will normally exceed the standard margin a dealer has so the dealer claims the difference (fleet support) upon registration which then gives them enough back to earn a profit too.

I’m sure there are variations but that’s how it’s worked for manufacturers I have been involved with in the past.

[Teebs]

Thanks, that is useful.