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For those that are keen to learn about the latest developments in accounting rules applied to leases, you need to get out more! As an accountant myself I guess I’d better take a few lines to get you up to speed, I’m sure someone must be interested. The main change proposed by the two main accounting boards, the IASB and the FASB, is the recording of Read more »

Last week I reported on the shambles known as the EU Consumer Credit Directive that would, without doubt, cause widespread confusion amongst consumers and small businesses (who were included in the Consumer Credit Act but not in the CCD). Trying to get the message across to customers in dealerships would result in the blind leading the blind Read more »

There are new accounting rules being worked on by the International Accountancy Standards Board in order to standardise the way that leases are accounted for. Years ago we made a big issue about the fact that contract hire type leases were ‘off balance sheet’ and simply recorded as a revenue expense. This was quite important for large corporates but for smaller companies it didn’t actually carry a lot of Read more »

The importance of using a good car finance broker has been once again highlighted by press reports confirming a lack of money available to lend, as the effects of the credit crunch continue. In a recent article, John Lewis, chief executive of the British Vehicle Rental and Leasing Association, pointed out that funding is still in limited supply and ‘the days of easy credit are long gone.’ He went on to confirm what I have been saying Read more »

A warning to business users has been issued regarding proposed changes to the way that leases are accounted for. Currently if you lease a car the cost simply appears as an expense in the profit and loss account and notes regarding commitments in the accounts notes. However, new accounting proposals will see all leased assets appear on the balance sheet as Read more »

OK now I’ve filled you with doom and gloom let me give you the good news. Whilst this new superleasing company (Lloyds/TSB Lex) will dominate the market, because of the scale of their operation they will have to concentrate more on the large fleets rather than the SME and consumer sectors, thereby increasing competition amongst the smaller players. As a result contract hire companies such as Leaseplan, Lombard, Masterlease etc will concentrate on model specific deals. Whilst the superlease company will arrange Read more »