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Finally it would seem that fewer people are using private cars for business since the Government chose not to adjust the Approved Mileage Allowance Payment (AMAP) in line with increasing running costs especially the increase in fuel costs. The rates are still set at 40 pence per mile for the first 10,000 miles and 25 pence per mile thereafter, tax and NI free. This rate was set six years ago Read more »

As if to support my comments made over the last few weeks market analyst Datamoniter has recorded a growth in vehicle leasing in the fleet sector as more companies release cash tied up in their vehicles and reduce exposure to market conditions by selling off the cars they own and replace them with leased vehicles. New vehicle sales generally slumped further in August from the July drop of 7.3% to an unprecedented 15.6%. Consumers, unaware of the cash flow benefits of leasing new cars, have really Read more »

Now is the time to take great care with the funders, dealers and brokers, both online and offline, that you use to fund your next car. Things are getting tough and having lived through the last recession I know many of the tricks and scams that they all get up to in order to secure life saving orders. Cars are expensive items and great care should be taken over the selection of suppliers. I’ve been in this industry for over 25 years and I am Read more »

Motoring costs have increased by 19% in the last year according to the RAC’s Annual Cost of Motoring Index. The average cost of running a family car has increased to £2,435, an increase of £277. This equates to £47 per week or 20.3 pence per mile. The index found that depreciation, which is causing major problems for rental and leasing companies is on average £826 more per year. The happy bunnies at the RAC have predicted that costs will rise further with volatile fuel prices and the uncertain economic climate. By Graham Hill

Animal damage is on the increase according to contract hire company Masterlease. During 2007 animal damage cost Masterlease customers nearly £100,000 after vehicles were in collision with a variety of animals from badgers, cattle, deer and pheasants to domestic cats and dogs. The most common collision was with deer, accounting for 28% of all animal collisions. Pheasants caused 21% and badgers 9%. However, the surprising big increase was accidents involving cattle which caused an average of £1,100 worth of damage to each vehicle. By Graham Hill

Insurance giant Norwich Union has warned businesses with fleet insurance policies to avoid the practice known as ‘Fronting’. This practice allows people who are not directly connected to the company to drive under its insurance. Mike Smith of NU said ‘Fronting in most instances, will invalidate the company insurance policy, leaving the business to pay for any damage to their vehicle. Also if any other driver is involved in an accident, while the insurer will be obliged to meet any liability cost, they can seek recovery of any such payments from the policyholder.’ By Graham Hill

Fuel is coming down, the sun is shining and the banks are lending again. Well 2 out of three can’t be bad! I think the email from the Government to the banks must have got lost in cyberspace somewhere or maybe they sent it in the post without a large letter stamp attached. Either way I am still waiting, as are most in the finance industry, for the glimmer of light that suggests that Chancellor Brown oops I mean Darling did the right thing for us common people or whether things will continue to deteriorate. The annoying thing is Read more »

Avis Valet Services have been giving out some great tips for motorists looking to take better care of their car without spending a fortune. The suggest the following:

• Mayonnaise can be good at removing road tar stuck to tyres and paintwork.

• Try using cooking oil on tyres and paintwork to remove black marks left by stubborn brake dust on wheel arches. It’s also great for removing bird droppings or splattered bugs on your windscreen.

• Baking soda is excellent for lifting any kind of stain or mark, just dab the interior and leave for 20 mins before rinsing off. Leaves a fresh smell as well.

• Use white vinegar on windscreens for crystal clear visibility as vinegar stops dust and smells collecting on the glass.

• Wrap an ice cube in a cloth or pop some in a freezer bag and hold over chewing gum stuck to car seats or carpet. The gum will eventually snap off leaving no sticky residue.

• Linseed oil – this can be used to clean leather upholstery in you car as it cleans and softens at the same time.

• Sticky tape – use this to remove any hidden dust particles from seat fabric. The tape lifts the dust whereas a brush would simply push it in deeper.

 
So there you have it some interesting advice from Avis so blame them and not me if anything goes wrong. By Graham Hill

Whilst we are pretty much ripped off in the UK when it comes to new cars compared to the US it sometimes has advantages. At the moment many leasing companies in the US have refused to take on any more leasing business as the risk is all on them and the current drop in used car values is costing them a fortune. In order to achieve cheap rates in the UK the manufacturers have to Read more »

Next year should see an upsurge in contract hire sales as the new tax rules kick in. Professor Peter Cooke of the Centre of Automotive Management at the University of Buckingham (and one of my fellow contributors in Motor Finance journal) warned that the tax changes, to be introduced next year, will have a profound impact on the way that businesses fund their cars. Next year will see Read more »