VAT Increase Benefits Leasing

Wednesday, 28. July 2010

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 »

VAT Rate Rise Affects Leasing Company Rates And Profits

Sunday, 18. July 2010

 I know I feel like I’m banging my head against a brick wall when I explain to customers that they should never simply look for the lowest rate when it comes to leasing a car. Of course when you buy something for cash you will maybe look for the cheapest price. The car you pay cash for at a car supermarket will be the same as a car that you pay cash for at a main dealer (unless it’s a sub spec black market car). The car will Read more »

Following A Large Drop In Leasing – Signs Of Recovery

Saturday, 8. May 2010

Leasing fell dramatically across Europe during 2009 according to Leaseurope, the trade association representing the European leasing and vehicle rental industries. New lease business was down by 28.4% last year compared to 2008, this represented the greatest fall since they started keeping records in 1994. My own view is that much of this was the result of manufacturers diverting money into scrappage whilst Read more »

Scrappage Ending But No Improvement To Lease Rates

Thursday, 25. February 2010

The new car market is in total confusion. As the extended scrappage scheme finally comes to an end I have predicted that the manufacturers will turn their attention to the fleet market and offer incentives to fleet buyers and leasing companies. Unfortunately experts don’t share my optimism, they feel that manufacturers will still be cautious and unlikely to offer more incentives than are already available with increased Read more »

Dangers Of Low Rate Leasing

Wednesday, 14. October 2009

The importance of using a broker rather than a bucket shop for lease cars has been highlighted again this week following the consolidation of the leasing industry. Where your lease provider may have been merged or taken over by another provider you may find yourself subjected to end of lease charges that you may not have received by the original provider who may have been fairly relaxed about defleet recharges. Read more »

New Insurance To Cover End Of Lease Charges

Friday, 2. October 2009

Finally, it’s happened, a company has brought out an insurance policy to cover the ever growing end of contract refurbishment charges for cars and vans that will be returned to the leasing company at the end of the lease. The cost of the policy will range between £290 and £350 for a standard family sized car and it will cover vehicle damage over and above fair wear and tear up to £1,500. This may seem like Read more »

Scrappage Scheme Extended In Daft Move

Sunday, 27. September 2009

Bad news! The dopey Chancellor has listened to all the anecdotal evidence and decided that the scrappage scheme should be extended, which has already helped nearly 300,000 people with old bangers to get into new cars, but done nothing to help ordinary people and small businesses that are struggling to finance their new car as the funders are running out of money. Whilst manufacturers continue to Read more »

Has The Recession Allowed You To Reduce Your Lease Costs?

Monday, 21. September 2009

One of the effects of the recession is that apparently greenhouse emissions are substantially down as a result of cost savings and people traveling less miles in their cars and vans. Whilst this is great news for the environment and has helped to stabilize fuel prices it may also have a positive effect on the lease cost of cars on either contract hire or contract purchase. If you find that you are now traveling substantially fewer miles in your car you should Read more »

Bogus Leasing Companies Con Naïve Motorists

Sunday, 20. September 2009

Following on from the warning about crooks a warning has been issued by the Finance & Leasing Association regarding another fraud that is on the increase. Bogus rental and lease companies are being set up that provide criminals with access to what appear to be legitimate insured and taxed vehicles. The vehicles are obtained fraudulently on finance then sublet with Read more »

Beware Of Dealer Leasing

Friday, 18. September 2009

Just recently manufacturer’s own finance arms have been competing head on with the major leasing specialists such as Lex, Lombard etc. In some cases this has put off customers from using brokers and, as a result, going direct to dealers. This can be dangerous because if you use a broker, who has been in the industry for sometime, such as me, we know which dealers to use in order to Read more »