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Companies have already started to cut back on their transport costs, as of course consumers have also, in preparation for the difficult times ahead. Sadly the problem here is not a need to downsize or purchase cheaper cars etc. it is really a need to understand the finance tools that are available. Various types of leasing could save businesses a fortune. Taking on a tax efficient purchase scheme when the company is making no profits against which they can write off depreciation and interest is pure lunacy. Losing the Read more »

OK now I’ve filled you with doom and gloom let me give you the good news. Whilst this new superleasing company (Lloyds/TSB Lex) will dominate the market, because of the scale of their operation they will have to concentrate more on the large fleets rather than the SME and consumer sectors, thereby increasing competition amongst the smaller players. As a result contract hire companies such as Leaseplan, Lombard, Masterlease etc will concentrate on model specific deals. Whilst the superlease company will arrange Read more »

Much has been written recently about ‘wholelife costs’ when comparing purchase methods to leasing of cars because the one most important element of the equation is the value of the car in 2 or 3 years time. The problem is that most people are far too optimistic and this throws the whole calculation out of kilter. Take for example a Renault Scenic 1.6 Dynamique S costing £18,000 including metallic paint. In a straw poll I asked several people what they thought the car would be worth in 3 years time on average mileage. Their estimates ranged from Read more »

As more people understand the benefits of leasing over purchase Tesco have announced the launch of a staff leasing scheme in association with Lombard Vehicle Management. They have launched a pilot website under the name of Tesco Cars. This is the supermarket giant’s latest handle on the service industry where it already sells finance, insurance and warranty. Could this be their inroad into car leasing plus Tesco points? Under the new scheme Tesco will Read more »

Very bad news if you have bought a car or are buying it on HP but great news if you are leasing! EurotaxGlass’s has warned that used car prices will fall by at least 12% between now and the end of the year as retail demand continues to ease and the supply of second hand cars exceeds demand. The drop is around three times the drop experienced Read more »

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 »

As the credit crunch continues to have an effect more brokers are reporting difficulties with underwriting. As many of my readers know I have a column with Motor Finance – the journal of the motor finance industry and many brokers that contact me, as a result of my column, have reported that lease enquiries are still running high but finance declines are running higher than ever as funders become more selective as they prepare for the anticipated recession. 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 »

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 »

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 »