Graham Hill, Car Finance Expert, Shows Huge Differences In Lease Rates Between UK & USA

Monday, 19. April 2010

As we know, we tend to follow behind America, whether it’s the weather, release of new technology, a recession, an economic recovery and so on. So I was pleased to read in the Wall Street Journal that the leasing industry is just taking off big style in the US with (surprisingly) Toyota leading the way with Honda following up offering incredible deals to move new cars with rates dropping lower than they were at the turn of the century. Honda have an amazing deal whereby you can lease a new Honda Civic over 3 years with no initial payment and in fact the first monthly payment covered by Honda with just 35 payments x $190 or in sterling £125 per month. In the US this will cost them $6,650 or £4,375 on a car that costs $17,205. The equivalent car in the UK is about £19,000 so we have a way to go! Toyota are offering their Corolla over 3 years, after paying $1,999 (£1,315) they pay 35 payments of just $139 per month (£92) on a car that costs $16,750 or over here about £17,000 (when they were still sold). BMW rates are falling, as are most others, according to the Wall Street Journal. The driving forces have been the desire of drivers to get rates down, manufacturers looking to move new cars as the scrappage scheme runs out and the improved resale values achieved on end of lease cars encouraging manufacturers to move back into leasing. Let’s hope this wind of change reaches our shores fairly quickly. By Graham Hill