Secret Of Low Cost Leasing
Wednesday, 20. October 2010
The economy is fragile and uncertain which means there is greater demand for short term leases, as businesses and consumers look to restrict their commitments. Unfortunately, the fact that the manufacturers have scaled back production considerably, means that there is no overstock of vehicles available. This oversupply would normally encourage the manufacturers to provide additional bonuses, making short term leases relatively cheap, as this bonus helps to offset the heaviest depreciation that takes place in the 1st year of a car’s life. So if you see a short term deal that more or less fits your needs and is within your budget, as always, my suggestion is to move immediately, especially as most of these deals are restricted to whatever cars are in stock. As a word of warning, whilst a short term deal may restrict your exposure to risk the economy is tightening, as is available money to lend, so you may experience some serious difficulties when you come to change the car after 12 months, both from the point of view of available cars/deals and the hardening of the underwriters. In the past a well managed bank account, keeping within the overdraft facility, has been fine from an underwriters perspective but some are now taking a different view and want to see you not moving into overdraft at all before they will approve finance. That’s how tough it’s getting and beware, those that offer the lowest rates can be the most selective! Had problems with underwriting, please tell us about it? By Graham Hill
