Upfront Cash Deal

Global basis

Client:

Global Car Manufacturer

Issue:

The car manufacturer had a significant amount of excess stock of a car that was to be no longer manufactured.  They could not discount the car to move it to the retail market without disrupting the price point of their extensive dealership network.

Solution:

Active purchased all the vehicles upfront at the manufacturer’s required price – £15 million in cash.  The cars were then sold to a car hire company approved by the manufacturer as a fleet sale. In return, the car manufacturer agreed to Trade £45 million of media payable in cash across a three-year period.

Benefit:

The car manufacturer had a cash commitment from Active for the remnant of their discontinued cars at their required price.  The cars were sold to a car lease company so as not to disrupt the existing dealership network.  Active worked with the client and agency in order to implement and achieve their commitment back to us.

This deal could work for you if you:

  • You wish to sell your stock for cash
  • The problem is immediate
  • You are a multinational manufacturer with a significant global marketing spend
  • You have a reasonable spend to repay your commitment