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Peter Hollinshead, head of vehicle finance at HSBC Bank has produced a report explaining why Contract Hire is the way for even cash rich companies to fund their vehicles. The same reasons can be used for explaining why small companies and consumers should consider leasing as it is the most predictable and cost effective way of funding cars according to Hollinshead. As he explains, not only have used car prices dropped considerably but it is becoming increasingly difficult to sell cars. He acknowledges the arguments Read more »

You may think long and hard about using an Internet company but when considering which finance method to use you may carry out some research into the various options. The obvious route to go is to buy my book, ‘An Insider Guide To Car Finance’. But you may think that taking advice from such authorities as Glass’s Guide (EurotaxGlass), Sunday Times and Telegraph would provide the solution and offer up good advice. Well think again. I strongly criticised Read more »

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

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 are not in a recession – yet! But signs are that we are moving that way so now may be the correct time to consider leasing your car and take advantage of some of the deals that are about at the moment. It’s all about cash flow and contract hire will certainly provide you with the best cash flow and there is some even better news which I’ll talk about in a moment. If we look at the Audi A6 that we have on special at the moment the cost after 3 months payment in advance would be £329 + VAT per month (£387 per month inc VAT) but if you bought the car on HP over 4 years you would be paying close to Read more »

Staying on these two misleading articles they also point to the dangers of taking finance on cars and the problems faced by those who want to get out of their current large or gas guzzling cars and into smaller more efficient cars but are unable to because of the negative equity position with the settlement costs being far in excess of the resale value of the car on finance, ie. negative equity. The drivers are therefore left with cars that they don’t want to drive because they have no way out of the finance. Again this is a generalisation that simply isn’t Read more »