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Lease rates will have to increase for some of the larger ‘gas guzzlers’ as a result of the new showroom tax. However, there are some winners. If your new car spits out less than 130 g/km of carbon dioxides then you will pay no showroom tax and low road fund licence (car tax). The highest showroom tax is £950 for vehicles throwing out over 255 g/km of carbon dioxides. Aimed at discouraging large environmentally Read more »

According to reports by trade valuation guides, Glass’s Guide and CAP, the setting of residual values will become more difficult this year due to future uncertainties. Last year values increased as a result of the scrappage scheme, which removed cars from the system, fewer new cars were registered and more lease cars had their leases extended forcing up used car values in the middle of a recession because supply fell Read more »

A warning from Warranty Direct suggests that turbo charged engines are more likely to break down than non turbo charged. Around 11% of their customers suffer an engine failure with a typical repair cost of £619 but turbo charged engines have a failure rate of  28% with an average repair cost of £875, worth considering if you are thinking about buying a used car. Don’t forget that most diesel engines, especially those fitted in larger cars, are turbo charged. By Graham Hill

The new road fund licence rules come into force on the 1^st April. For some it is good news as those with low emission cars will see the cost of their RFL or road tax reduced, in some cases to zero, but a big row has broken out because drivers have to renew before the 1^st April to ensure that the car is taxed at all times but because the DVLA was having a cup of tea they couldn’t be arsed to change their computer Read more »

Manheim, the large auction house and end of lease vehicle inspectors have identified over £12 million of end of lease damage charges over 90,000 inspections during 2009. 38% of the vehicles that were assessed had damage in excess of the British Vehicle Rental and Leasing Association fair wear and tear guidelines resulting in an average charge of £350 per vehicle, up by 14% on 2008. Some of this was blamed on Read more »

My view, over the last few weeks, that we will see some return to the fleet market by manufacturers, now struggling with sales, following the end of the scrappage scheme, seems to be substantiated as Skoda, Chevrolet and Renault have all stated in one week that they are aiming at the fleet market. Renault aims to increase its market share from 3.17% to 5% this year whilst Chevrolet launches an independent fleet sales Read more »

Yet another funder pulled out of the market last month. HSBC has been a bit of a mystery because whilst they appeared to have a fleet of 33,000 vehicles out on contract the contracts weren’t with them at all. The scheme known as undisclosed agency meant that whilst the documentation showed the name of HSBC the agreements were actually underwritten by Lex Autolease. This ‘outsourcing’ started in 2005 Read more »

Dealers have not got the best reputations for being totally honest so we all make allowances when they make promises and commitments to our customers, in all good faith, and they let us down. But even our ‘allowances’ seem to be a little short of the mark of late as dealers get desperate to take orders. And to make matters worse we are back into the position of dealers making false promises regarding delivery of the Read more »

As we can see from my BMW 7 Series deal of the week, things are starting to improve at the big end of the market. In a prestige, sporting and executive auction held at British Car Auctions in Nottingham 300 dealers attended with 216 bidding online resulting in top models achieving 114% of CAP clean price (that’s trade value to you and me). The rest made 100-104% which is excellent considering the fact that last year the Read more »

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 »