Has The Recession Allowed You To Reduce Your Lease Costs?

Monday, 21. September 2009

One of the effects of the recession is that apparently greenhouse emissions are substantially down as a result of cost savings and people traveling less miles in their cars and vans. Whilst this is great news for the environment and has helped to stabilize fuel prices it may also have a positive effect on the lease cost of cars on either contract hire or contract purchase. If you find that you are now traveling substantially fewer miles in your car you should contact the customer services department of the leasing company and ask for a reduction in rentals. Even if it is only £5 per month, better in your pocket than theirs. This tends to be a little more difficult if the agreement is a PCP (Personal Contract Purchase) as it will require an adjustment to the guaranteed resale value and some companies won’t do it but if you have vehicles on contract hire or personal contract hire (PCH) you should be able to decrease your monthly payments by signing an addendum to the contract. But don’t leave it till the last minute, the leasing company is unlikely to adjust the monthly payments if there is less than 6 months left on the agreement. If you are one of my customers and you are covering less than your contract miles please send your details to me for me to deal with. By Graham Hill