This year has been a bit of a struggle for many industry sectors but not so much for the motor industry. Following the scrappage scheme it was expected that the motor industry would contract and dealerships close, something I personally didn’t think would happen. In anticipation of a potential downturn the manufacturers started to scale down production in 2008/9, some would say too far, as virtually every new car drifted out to long delivery lead times as demand remained relatively high. This Read more »
A Fleet News survey has shocked many involved in the leasing industry but confirms my long held views that end of lease charges have been spiraling out of control. And this is just the tip of the iceberg because the survey has been carried out amongst the larger fleets only, the companies valued by the lessors and invariably looked after. When questioned the customers have complained that they have received recharges for stone chips and minor scuffs, the sort of damage that had been previously Read more »
Andrew Sentance may not be a name that you have come across before but he is very important in our lives. He sits on the Monetary Policy Committee in the Bank of England. They sit each month and decide whether base rate should stay the same, at 0.5% or increase. Since the rate dropped to 0.5% every member of the committee has voted to keep it at the same level, that is until the October meeting at which Mr Read more »
I have issued another general warning about the lack of money available to lend and the subsequent repercussions. I have had many people writing to me explaining that they had strong credit but have been declined for loans on several occasions and are now being told that they have dropped into the sub-prime category, which means they will pay high rates of interest if they are able to secure finance at all. The reason for this is the fact that whilst there are still lenders willing to offer low rates Read more »
One of the constant questions I get asked is if the bank rate is at 0.5% why are personal loans running at around 8% – 10% and HP can be much more than that? Well unless you are a banker or you have a tracker mortgage the bank rate is pretty meaningless and this has always been the case when interest rates have been running at a pretty low level. The fact is that the interest a lender charges is his income. He might have a few fees that bolster up his admin costs but he still has his overhead costs to Read more »
It’s turned out to be a pretty busy week following the launch of my new book, Graham Hill’s Simple Guide To Car Finance which I hope will get everyone driving a great car. Preparing for finance is vitally important at the moment as there is little money about to lend. So that tempting low APR or monthly lease rate, that gets you sending off your finance application, may lead to a decline if you are not totally Read more »
