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As the credit crunch bites harder funders and brokers/intermediaries fight each other for the lowest rates on the Internet to encourage you to use them, sometimes as a result of lying and conning. So now is the time to be very very careful as to which company you use to provide your car if you want to avoid problems in the future. Probably the most important fact to be aware of is that the person you place your business with on the Internet is not working for the funder or the dealer – he is actually working for Read more »

BMW Financial Services have warned about an increase in lease scams whereby cars are obtained illegally by the scammers then sub leased to innocent third parties. One such fraudulent act included the customer signing the documents of a well known finance company and a seperate direct debit form which paid money straight into the scammer’s account and not the contract hirer’s account. The scammer made no payments for the car and disappeared whilst the driver continued Read more »

News from the US is worrying as Chrysler Finance make the first move to distance themselves from leasing by refusing to extend their lease business as a result of increased money costs and plunging residual values of their gas guzzlers. GMAC and Ford Motor Credit are likely to follow suit by reducing the amount of lease business they write. The projections are that other funders will follow their lead. This will have a dramatic effect on the market in the US as leasing accounts for 26% of auto car sales. Will this have an effect in the UK? Read more »

I recently warned anyone who has a car they own to get out of it as soon as possible and get into a lease car that carries no residual risk and reduces cash flow. The drop in used car values achieved at auction has again been highlighted by British Car Auctions who reported an average monthly drop in May of 3 year old cars of 2.6%. This continued into June with the average drop reaching 4.2%, the largest single month’s movement for several years. Again, get out of car ownership and into a form of finance which takes away all of the residual risk. By Graham Hill

Whilst identity fraud continues to increase and cause concern to the leasing companies that often pay out tens of thousands of pounds for cars after receiving just a few signed documents and an advanced rental cheque, often for less than £1,000, motor finance fraud is relatively low compared to say credit card fraud or online purchase fraud. But there has been a steady increase in some more sophisticated organised fraud that results in professionals having their identities used in order to Read more »

Leasing companies are really starting to feel the squeeze from several directions. Interest rates are going up, new car prices are increasing, there are fewer customers and more importantly used car prices have taken a sudden dive resulting in losses on virtually every car that is being de-fleeted  forcing rates up further on new cars in order to balance the losses. However, in addition to the rate adjustments we have seen many leasing companies try to recoup losses from customers by making large Read more »

As the Government stands firm on it’s 6 year old Approved Mileage Allowance Payments (AMAP) you should now consider the real benefits of paying for your own car personally and charging the business compared to having a company car. To remind you the AMAP rates are 40 pence per mile for the first 10,000 business miles and 25 pence per mile thereafter. The charge is tax and NI free but even 40% taxpayers are seeing the benefits badly eroded. The charge is to recover not just fuel but all Read more »

We are not in a recession – yet! But signs are that we are moving that way so now may be the correct time to consider leasing your car and take advantage of some of the deals that are about at the moment. It’s all about cash flow and contract hire will certainly provide you with the best cash flow and there is some even better news which I’ll talk about in a moment. If we look at the Audi A6 that we have on special at the moment the cost after 3 months payment in advance would be £329 + VAT per month (£387 per month inc VAT) but if you bought the car on HP over 4 years you would be paying close to Read more »

We have finally had confirmation from the treasury that the tax changes mentioned in the last budget only apply to new cars. Not that anyone expected it to be otherwise but the statements should never have been so vague in the first place. Cars that are already in use by April 2009 will not be subjected to the new rules so this will no doubt spur on a lot of activity between now and next April as companies look to maintain their current beneficial tax Read more »

As the economy tightens and fuel prices continue to increase now may be the time to consider leasing as a cash flow alternative to purchasing whilst also taking out the risk and uncertainty of outright purchase or using a purchase scheme. For around £250 per month including VAT you can lease a £17,000 car that would cost nearly £200 per month more out of your cash flow, if hire purchased over 4 years then to find that the vehicle has negative equity in it if sold after say Read more »