2 weeks ago
Lotus has admitted it will not be able to honour previously agreed finance offers, leaving customers in limbo as they wait for their cars to be delivered.
The British marque emailed its dealer network on Friday (Dec 13) to tell them that finance provider Drivalia UK Ltd was pulling funding.
It means that the firm will now longer be able to honour ‘the majority’ of Personal Contract Hire (PCH) or Business Contract Hire (BCH) finance deals that are yet to be delivered’.
The email, seen by Car Dealer, was sent by Conor Horne, Lotus’s UK and Ireland director, who told dealers that talks are now ongoing to ‘alleviate any risk’ to both customers and dealers.
He said: ‘Following a call this afternoon (Friday, 13th December at 3:30pm UK time) with Credit Agricole Auto Bank and Drivalia UK Ltd, we were informed that they will no longer be able to honour the majority of the previously quoted Personal Contract Hire (PCH) or Business Contract Hire (BCH) finance deals that are yet to be delivered.
‘This is due to RV exposure internally on their behalf.
‘This will mean that these customers will no longer be entitled to their previous quoted offer.
‘We appreciate this will be a surprise and frustrating news to receive. We are currently in ongoing conversations with both parties and doing everything we can to resolve and alleviate any risk to our customers, as well as yourselves, our retail network.
‘We are working through a mitigation plan, which will be shared as soon as possible to minimise any risk of customer cancellations.’
As a result of the change, several customers, who were expecting to have had their Lotus cars delivered, are now facing an uncertain period.
One such customer, who did not wish to be named, told Car Dealer that his local Lotus dealer had previously assured him that his finance offer would be honoured.
He says that he was only informed of any problem once his car arrived at the UK port, despite him being given a registration.
‘I myself ordered a car in June only to be told this when the car arrived at the port,’ he said.
‘When people, myself included, spoke to their dealers, they told everyone that the deals would be honoured and I was even given a registration.’
In response to the claims, Lotus and finance provider Drivalia told Car Dealer that all offers are ‘subject to fluctuating market values’
The carmaker added that it was ‘factually inaccurate’ to suggest that cars had been left sitting in ports as a result of the latest developments.
In a joint statement, issued to Car Dealer, Lotus and Drivalia said: ‘Lotus and Drivalia have been working together to mitigate against any customer effects due to leasing offer timelines and delivery dates.
‘All contract hire quotes provided to customers, before delivery dates are finalised, are subject to fluctuating market values. Lotus has kept dealers informed of the possible need to revise quotations, once delivery dates are confirmed.
‘We are working closely to minimise any potential changes and resolve this issue as quickly as possible.’
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