The manufacturers are running out of buttons to push and levers to pull on finance. ,over the years many of them thought having their own finance or leasing company would be a good idea but new accounting and banking rules have started to stretch balance sheets and so they have reverted to some extent to strong arming finance companies to offer low interest rates and take on the risks. Fewer and fewer are prepared to do this except for the very highest rated borrowers leaving the manufacturers short of capacity. As I say the risks are not understood, in the last year I worked we had 95,000 vehicles due to be returned to us , make a profit of £100 on the residual value and you are a hero, make a £100 loss and you will loose your job . Remember that residual value had been set 3 or 4 years earlier on an average purchase price of £16,000 , in other words be less than 1% out on your valuation and you are stuffed!
