Leasing In The UK Still A Great Option

Friday, 10. October 2008

Whilst we are pretty much ripped off in the UK when it comes to new cars compared to the US it sometimes has advantages. At the moment many leasing companies in the US have refused to take on any more leasing business as the risk is all on them and the current drop in used car values is costing them a fortune. In order to achieve cheap rates in the UK the manufacturers have to give away fortunes in bonuses, but they do it for limited numbers of selected models. When this happens it can benefit both lenders and customers softening the impact of the huge drops in used car prices seen here running at similar levels to the States. So whilst underwriting is getting a little tougher over here there is no talk of any funder withdrawing from the market as seems to be happening wholesale in the US. We may see some consolidation of leasing companies to benefit from economies of scale but I don’t expect any major withdrawals from the market in the short term. With selected cars being offered at silly rentals now is the time to sell the car you own and liquidate the asset then lease a new car that offers a great saving like last Friday’s special the Volvo S80 at £239 + VAT per month. My only warning is that when you see a bargain don’t sit on the fence, go for it immediately or lose out forever. We have just seen it with much of the Mercedes range. The great deals we had on E Class have gone and rentals are up by over £100 + VAT per month. Whilst the deal may return we just don’t know at the moment. By Graham Hill