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More than half of motorists believe their commute to work has got longer according to a poll carried out by Motorpoint. It found that motorists spend more time than ever behind their wheel during the rush hour wasting their time and using up a record amount of fuel getting to work. David Shelton, managing director of Motorpoint said ‘With the prospect of congestion charging becoming commonplace, getting to work is likely to become more expensive.’ Bit obvious that one David, maybe your comment was taken out of context! By Graham Hill

News from the US is worrying as Chrysler Finance make the first move to distance themselves from leasing by refusing to extend their lease business as a result of increased money costs and plunging residual values of their gas guzzlers. GMAC and Ford Motor Credit are likely to follow suit by reducing the amount of lease business they write. The projections are that other funders will follow their lead. This will have a dramatic effect on the market in the US as leasing accounts for 26% of auto car sales. Will this have an effect in the UK? Read more »

Proposals have been made to re-schedule MOT tests. The first to take place after 4 years followed by biannual checks. As cars are built better and service intervals stretch out to 2 years or 20,000 miles it is felt that MOT tests are not required so frequently. However, the vehicle repairer’s association, MVRA, has objected strongly referring to ‘serious safety issues’ if the new proposals are adopted. I’ll keep you posted. By Graham Hill

So you’ve been out and got yourself a nice environmentally friendly electric car for driving around London. Not only do you avoid congestion charges but also you get free parking. Oh no you don’t! Bonkers Boris has suddenly decided that by giving free parking to these little electric cars it discourages the use of public transport, walking and cycling so from the end of 2008 you no longer get free parking in an electric car. This will now cost those who hold free parking cards £2,000 as well as wiping 50% off the value of their cars. I agree with the spokesman from electric car manufacturer Nice who described the decision as ‘Barmy’. And we thought Ken was clueless.

Leasing companies are really starting to feel the squeeze from several directions. Interest rates are going up, new car prices are increasing, there are fewer customers and more importantly used car prices have taken a sudden dive resulting in losses on virtually every car that is being de-fleeted  forcing rates up further on new cars in order to balance the losses. However, in addition to the rate adjustments we have seen many leasing companies try to recoup losses from customers by making large Read more »

As the Government stands firm on it’s 6 year old Approved Mileage Allowance Payments (AMAP) you should now consider the real benefits of paying for your own car personally and charging the business compared to having a company car. To remind you the AMAP rates are 40 pence per mile for the first 10,000 business miles and 25 pence per mile thereafter. The charge is tax and NI free but even 40% taxpayers are seeing the benefits badly eroded. The charge is to recover not just fuel but all Read more »

We have finally had confirmation from the treasury that the tax changes mentioned in the last budget only apply to new cars. Not that anyone expected it to be otherwise but the statements should never have been so vague in the first place. Cars that are already in use by April 2009 will not be subjected to the new rules so this will no doubt spur on a lot of activity between now and next April as companies look to maintain their current beneficial tax Read more »

A long overdue code is being introduced against which quality standards of vehicle repairers will be measured. Garages that sign up to the Motor Industry Code of Practice for Service and Repair commit to meeting certain standards, such as open and transparent pricing, invoices that match quoted prices and completing work as agreed. Whilst the code is not yet operational garages can already sign up to it. So far more than 5,500, about 25% of the market, has committed to Read more »

It’s not often that I feel the urge to support our French neighbours but their government recently made a proposal to reduce fuel taxes to ease petrol and diesel price increases across the EU, something I feel is urgently needed. However, the finance ministers within the Eurogroup – those countries that insist on using Euros rather than very sensibly sticking to their currency of origin like us Brits, have blocked the proposal. I’m sure our government would have blocked it also but they weren’t invited to participate as we don’t conform to Read more »

As the economy tightens and fuel prices continue to increase now may be the time to consider leasing as a cash flow alternative to purchasing whilst also taking out the risk and uncertainty of outright purchase or using a purchase scheme. For around £250 per month including VAT you can lease a £17,000 car that would cost nearly £200 per month more out of your cash flow, if hire purchased over 4 years then to find that the vehicle has negative equity in it if sold after say Read more »