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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 »

Diesel car sales are exactly the same as they have been since the beginning of the year. That’s my experience however if you believe press reports diesel and petrol car sales swing backwards and forwards like a pendulum. A couple of weeks ago when fuel reached its all time high the press reported the bottom falling out of the diesel market and everyone immediately turning to petrol. According to my sales and enquiries diesel demand was just as strong. A couple of weeks later and an unexpected drop in fuel prices sees 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 »

More than half of motorists believe their commute to work has got longer according to a poll carried out by Motorpoint. It found that motorists spend more time than ever behind their wheel during the rush hour wasting their time and using up a record amount of fuel getting to work. David Shelton, managing director of Motorpoint said ‘With the prospect of congestion charging becoming commonplace, getting to work is likely to become more expensive.’ Bit obvious that one David, maybe your comment was taken out of context! By Graham Hill

If you are hell bent on driving a 4 wheel drive I would make the most of it now as auction house Manheim have reported exceptional losses sustained by leasing companies when re-selling end of contract 4WD cars. At the moment manufacturers are offsetting poor resale values with big discounts and bonuses but the long term view is that manufacturers will scale down production and switch the lines over to smaller more desirable ‘greener’ cars. This will mean that they will give away less by way of bonuses making the lease cost of gas guzzling 4WD cars very high.But whilst we are in this honeymoon period and you like 4WD’s now is the time to take one because by the end of the year rates will potentially be horendous and deliveries even worse. Hands up who wants a Hummer? By Graham Hill

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

Whilst identity fraud continues to increase and cause concern to the leasing companies that often pay out tens of thousands of pounds for cars after receiving just a few signed documents and an advanced rental cheque, often for less than £1,000, motor finance fraud is relatively low compared to say credit card fraud or online purchase fraud. But there has been a steady increase in some more sophisticated organised fraud that results in professionals having their identities used in order to Read more »

Proposals have been made to re-schedule MOT tests. The first to take place after 4 years followed by biannual checks. As cars are built better and service intervals stretch out to 2 years or 20,000 miles it is felt that MOT tests are not required so frequently. However, the vehicle repairer’s association, MVRA, has objected strongly referring to ‘serious safety issues’ if the new proposals are adopted. I’ll keep you posted. By Graham Hill

Well, it’s motor show time again and all the talk is about the new low emission cars. So it wasn’t surprising that at the same time Asda and Morrisons announced fuel cuts by up to 4 pence per litre which may spark a price war – we hope. It may therefore be wise to track the lowest prices closest to you which you can do by clicking on http://www.petrolprices.com/. The warning is not to get carried away and end up travelling miles to top up, spending more on the fuel you use than the amount you save on the top up.

So you’ve been out and got yourself a nice environmentally friendly electric car for driving around London. Not only do you avoid congestion charges but also you get free parking. Oh no you don’t! Bonkers Boris has suddenly decided that by giving free parking to these little electric cars it discourages the use of public transport, walking and cycling so from the end of 2008 you no longer get free parking in an electric car. This will now cost those who hold free parking cards £2,000 as well as wiping 50% off the value of their cars. I agree with the spokesman from electric car manufacturer Nice who described the decision as ‘Barmy’. And we thought Ken was clueless.