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Fraud is on the increase as consumers and small businesses are driven to desperate lengths. Not only are applicants providing incorrect details and proofs, brokers are also falsifying documents in order to ensure that applications are accepted and they earn their commissions. There has also been an increase in premeditated motor finance crime with multiple applications being made in the expectation that Read more »

A report from the Finance and Leasing Association (FLA) showed that their members financed £5.6billion of consumer expenditure on new cars in 2007 and a third of total expenditure on cars throughout the year. Interestingly, new car finance was named by FLA consumer finance members as the most important use to which consumers put their funds, with used car finance the 4^th most important Read more »

The 1st October sees the introduction of new regulations that ensures that customers with hire purchase or conditional sale agreements are reminded specifically of their rights to voluntary terminate (VT) the agreement when 50% of the total amount due has been paid. The Consumer Credit Act 2006 states that Read more »

I have been quite frustrated this week as a result of the plight of a lady who has a major problem with a finance company. As a court case is pending I cannot comment on the details but suffice to say that I am doing everything to help. The lady had a arranged a car through Gwent Fleet Management of Abergavenny who are now under investigation by the police but as a result of their actions the lady now has a battle with a finance company called Mallard Finance, who are, Read more »

If you are the sort of person who still likes to own your car then at some stage you will need to sell it again but according to contract hire company Lex it depends where you live as to how much you will get for your old car. If you have gone green and now own a hybrid or electric car you will be better off in the South especially around London as a result of the affects of congestion charging. Conversely Read more »

Much has been written recently about ‘wholelife costs’ when comparing purchase methods to leasing of cars because the one most important element of the equation is the value of the car in 2 or 3 years time. The problem is that most people are far too optimistic and this throws the whole calculation out of kilter. Take for example a Renault Scenic 1.6 Dynamique S costing £18,000 including metallic paint. In a straw poll I asked several people what they thought the car would be worth in 3 years time on average mileage. Their estimates ranged from Read more »

My quote of the week goes to a spokesman for BMW‘s UK operations following an announcement that BMW cars were to receive a substantial price hike. He was trying to reassure us in the UK that we were not included in the expected increases. The company had issued a profit warning and said that due to increased oil and raw material costs they would be forced to increase prices – but not in the UK – he said, Read more »

As more people understand the benefits of leasing over purchase Tesco have announced the launch of a staff leasing scheme in association with Lombard Vehicle Management. They have launched a pilot website under the name of Tesco Cars. This is the supermarket giant’s latest handle on the service industry where it already sells finance, insurance and warranty. Could this be their inroad into car leasing plus Tesco points? Under the new scheme Tesco will Read more »

Very bad news if you have bought a car or are buying it on HP but great news if you are leasing! EurotaxGlass’s has warned that used car prices will fall by at least 12% between now and the end of the year as retail demand continues to ease and the supply of second hand cars exceeds demand. The drop is around three times the drop experienced Read more »

Peter Hollinshead, head of vehicle finance at HSBC Bank has produced a report explaining why Contract Hire is the way for even cash rich companies to fund their vehicles. The same reasons can be used for explaining why small companies and consumers should consider leasing as it is the most predictable and cost effective way of funding cars according to Hollinshead. As he explains, not only have used car prices dropped considerably but it is becoming increasingly difficult to sell cars. He acknowledges the arguments Read more »