Lotus has recently admitted that it will not be able to honour most of its previously agreed Personal Contract Hire (PCH) and Business Contract Hire (BCH) offers, leaving Lotus buyers left in limbo, according to Car Dealer Magazine.
The British marque informed its dealer network that finance provider Drivalia UK Ltd was pulling funding, which means that the firm can no longer honour the majority of finance deals that are yet to be delivered.
The announcement came after a call between Credit Agricole Auto Bank, Drivalia UK Ltd, and Lotus, during which it was revealed that the finance provider would no longer be able to honour the previously quoted offers due to internal RV exposure. This left hundreds of Lotus customers in limbo, many of whom were just days away from taking delivery of their new cars. Can you imagine the frustration as a customer, to be left high and dry, with no explanation provided?
One customer, who had ordered a car in June, was only informed of the issue once his car arrived at the UK port, despite being given a registration, says Car Dealer Magazine. He expressed frustration, stating that his local Lotus dealer had previously assured him that his finance offer would be honoured.
In response to the claims, Lotus and Drivalia stated that all offers are subject to fluctuating market values and that it was factually inaccurate to suggest that cars had been left sitting in ports as a result of the latest developments. The companies are working closely to minimise any potential changes and resolve the issue as quickly as possible.
Following on a joint statement 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.”
Lotus has assured its customers and dealers that it is working through a mitigation plan to minimise the risk of customer cancellations and alleviate any potential risks. The company is in ongoing conversations with both parties to resolve the situation and provide clarity to affected customers.
What are your thoughts on this situation? Do you think Lotus will be able to resolve this issue satisfactorily?
