The Best Car Finance Blog In The World

If you are hell bent on driving a 4 wheel drive I would make the most of it now as auction house Manheim have reported exceptional losses sustained by leasing companies when re-selling end of contract 4WD cars. At the moment manufacturers are offsetting poor resale values with big discounts and bonuses but the long term view is that manufacturers will scale down production and switch the lines over to smaller more desirable ‘greener’ cars. This will mean that they will give away less by way of bonuses making the lease cost of gas guzzling 4WD cars very high.But whilst we are in this honeymoon period and you like 4WD’s now is the time to take one because by the end of the year rates will potentially be horendous and deliveries even worse. Hands up who wants a Hummer? By Graham Hill

I recently warned anyone who has a car they own to get out of it as soon as possible and get into a lease car that carries no residual risk and reduces cash flow. The drop in used car values achieved at auction has again been highlighted by British Car Auctions who reported an average monthly drop in May of 3 year old cars of 2.6%. This continued into June with the average drop reaching 4.2%, the largest single month’s movement for several years. Again, get out of car ownership and into a form of finance which takes away all of the residual risk. By Graham Hill

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

Since the changes to the Highway Code, brought in last year, Churchill Car Insurance carried out a survey and found many drivers unaware of the changes. More than 80% were unaware that playing loud music in cars is against the new Highway Code rules and almost two thirds admitted to eating whilst driving which is against the new rules. The research also found that 30% of drivers think that driving in flip flops or high heels is forbidden and yet this is not the case! That’s a relief eh fellas! You can view the new highway code online by visiting www.direct.gov.uk  scroll down to travel and transport and click on highway code then scroll down again to view all the headings.

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 »

In my book ‘An Insider Guide To Car Finance’ I provide a great deal of legal advice, obviously if you find yourself in a dispute you should consult a qualified solicitor. However, by way of advice, in these times of high fuel costs suddenly the advertised MPG figures become all important. So what happens when the figures provided by the manufacturer/dealer are incorrect? I often receive complaints about this subject but as the cost of fuel was under reasonable control no one seemed willing to enforce their legal position, however that may well start to change. So in order to clarify your position I would suggest the following. Read more »

Now for a bit of a technology update: Mazda has started to trial a new vehicle to vehicle communications system that can warn drivers of approaching danger such as approaching traffic at blind bends and intersections. Maplin has produced a do it yourself reversing camera that is powered through your cigarette lighter socket. The screen changes from colour during the day to black and white at night to make the screen clearer. It costs £130. Unipart is currently developing a ‘black box‘ that can automatically alert the emergency services if your car is involved in an accident or stolen. Unipart claims Read more »

The Government is to tighten up on new car advertising as a result of pressure from the greenies to better advise the public about CO2 emissions. In future all literature including posters and all print ads must include CO2 emission information. This is now believed to conform to EU directives on the level of information that should be made available to car buyers. Strangely no such rules apply to used cars which are in the vast majority and kick out many more CO2‘s than their new equivalents. Or am I missing something?

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 »