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As the economy bumps along showing minimal signs of recovery the CVO Survey shows that large companies continue to actively use contract hire as its main method of financing its company cars whilst SME’s continue to blindly use cash, loans and overdrafts. Why should this be? I would suggest out of ignorance. Far too little is understood about leasing for SME’s to make a considered choice so they end up Read more »

Whilst I’ve been warning about long lead times for months now the industry has warned those that lease their cars to make arrangements earlier to replace their cars as some leasing companies are proving to be very inflexible with regard to lease extensions unless you are replacing your current car with another of the same make, especially where a captive funder has been used. Worst at the moment are VW Read more »

There’s all sorts of confusion about the VAT increase from 17.5% to 20% next January. The increase affects vehicles in different ways. If, as a business, you buy a car outright you cannot claim back any VAT at all, there is a 100% block. Even if the car is a pool car and only available for use by employees for occasional personal use (and not necessarily used by them) the 100% block will be applied. Even if an employee Read more »

A friend of mine was once clamped in a car park for not having a ticket displayed in her windscreen (she accidentally put it in her purse – daft as). As a result another friend came to the rescue at 2.00am with his tool box. After about 4 hours and several hacksaw blades later she was finally free to drive home. Not something I approve of, obviously, but it made me a little more cautious about where I park my car and I Read more »

Just as we were hoping to see more lease deals come through and rates start to drop CAP, the used car valuation company, has announced a weakening of the used car market and prices through auction starting to fall slightly. Mike Hind of CAP said that he wasn’t too concerned as ‘This is not the same dynamic as the panic of 2008.’ Although he went on to point out that the market is at its weakest for 12 months with no Read more »

As companies look at various ways to raise money, as we slowly emerge from recession, some are now looking at their company cars as a possible way to raise funds for expansion. For those that don’t want to approach their bank to increase their borrowings this could be a good alternative. The scheme, known as sale and leaseback, is an arrangement between a leasing company and the customer whereby the leasing Read more »

Oh dear I’m not sure how this is going to go down with employees but it seems that there has been a bit of an upsurge in the provision of logos for company cars. In the past companies that run vans and trucks would use them as a mobile advertisements for their business but very few, other than estate agents and letting agents, adorn their cars with advertising logos. But just recently employees have been Read more »

As more companies understand the risk attached to allowing employees to drive their own cars on company business, many have decided to avoid the risk of the car not being in roadworthy condition or the driver driving a car that isn’t properly insured by renting cars as required. Avis have recognised this and has also turned its attention to businesses for its growth. They are not only targeting the large fleets but also Read more »

There has been an increase in the number of employees who have either opted for cash for cars or been expected to use their own cars for business in exchange for a cash payment. Either way there is a responsibility on the employer to ensure that the vehicle is roadworthy and properly maintained as well as properly insured for business use. There is a grey area for employers who, in the event of an accident, in Read more »

There has been an increase in the number of employees who have either opted for cash for cars or been expected to use their own cars for business in exchange for a cash payment. Either way there is a responsibility on the employer to ensure that the vehicle is roadworthy and properly maintained as well as properly insured for business use. There is a grey area for employers who, in the event of an accident, in Read more »