The Best Car Finance Blog In The World

The test of a finance arrangement isn’t so much the cost or the APR but in the current climate, what happens when things go wrong. Most of my readers know my views on the heavy promotion of personal loans rather than dealer HP but another issue was mentioned to me this week that again shows why HP is far more beneficial than a personal loan. When you take out dealer HP it is what is known as a Read more »

a few people have been asking about new cars and when a new car is a new car. I have explained this in detail in my book, An Insider Guide To Car Finance, which can be bought and downloaded online. But to summarise, the car must not have been registered to anyone else before you receive it, not even to the dealer and it must not have an ‘unreasonable’ mileage on the clock, expressed in one court case to be no more than 500 although I find this excessive. The strange rule is that Read more »

Whilst we are still having our flabbers gasted how big do you think the joint operation of Hyundai and Kia are? Most people think that production has only just been moved out of the garden shed but in fact the Hyundai-Kia Automotive Group has become the fourth largest global automotive manufacturer, according to the Automotive News Data Centre. In fact the Korean manufacturer has now overtaken Ford as they have seen production drop by 30% in the first half of 2009. With a lot of good feedback these days on Hyundai and Kia product maybe we should take a closer look at them. By Graham Hill

Which car holds its price best? I would have said Mini as it has held the title for some time but a few surprises have taken over, possibly as a result of high demand for smaller cars and fewer cars available in the used car market as a result of the scrappage scheme. The best performer, according to Glass’s Guide, over 3 years has been the Peugeot 107 which has retained 60.9% of its value. This has been followed by the Toyota Aygo (60.2%) and the Suzuki Swift (59.5%). My flabber has never been so gasted! By Graham Hill

Experts are warning that the hike in fuel duty taking place this week by 2.3 pence per litre could be the start of significant increases on the way as crude oil increases in cost and the reduced rate VAT is set to end. The RAC predict that pump prices could return to the levels of summer 2008 at around £1.20 litre. So if you are thinking of changing your car you should make sure that you take a close look at fuel consumption, there is no longer the clear distinction between petrol and diesel. By Graham Hill

We are hopefully seeing some green shoots of economic recovery in various parts of the world. In the UK we paid off more than we borrowed last month for the first time ever and house prices are starting to rise but company closures and redundancies are still running at a high level and will probably do so for some time as we bump along waiting for the sustained upsurge in the UK and world economy. This means that many more of the population will continue to Read more »

First Hybrid cars that mix n match petrol power with battery power and now all electric cars, heavily supported by prime minister Mandleson, that will save the planet and will be the future, must have, green accessory! Oh no it won’t! Well not if the already frugal Citroen C1, modified by the Electric Car Corporation, continues to cover just 70 miles on a full battery and at a cost of £16,850, twice the cost of the standard petrol version. No way Jose? Having said that Read more »

I have just quoted a customer on a BMW X5, similar to the last car that he contract hired 2 years ago. On his old car the difference between the 2 year and 3 year rates was about £15 per month (2 years more expensive). However, the difference now is £134.53 + VAT per month! Why should this be? 2 years ago it could be argued that there was more discount/bonus in the car virtually wiping out the first year’s depreciation. 2 year old cars may have had a greater resale desirability than 3 year old cars on pro-rata mileage. But £135 + VAT per month? I don’t think so! Or maybe I’m to blame. You see I have explained Read more »

There are now some wide fluctuations in monthly contract hire rentals as many factors come into play. Amid fears that the industry is predicting the collapse of one of the major contract hire companies before the end of the year and possibly the loss of a few smaller ones, the industry is in a mess with rates all over the place. It isn’t uncommon for rates to have a spread of £50 + VAT per month between the cheapest and most expensive rates on the same car. Fleet Operations have found that in the case of a Ford Focus the spread was Read more »

Years ago when I first started providing contract hire we would provide terms that would include 3 rentals in advance followed by 21 payments, if a 2 year deal, or 33 payments if a 3 year deal. This meant that there were no payments in the last 2 months. As a result many customers would set aside the money that they would normally pay per month in preparation for the initial rental on the next contract. However, some brokers and lenders realised that if they spread all the payments over the 24 months or 36 months they could Read more »