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Posts Tagged ‘car leasing’

While I was driving to the office about a month back I started to get stuck in a huge traffc jam, I was getting really bored and fed up. I suddenly found myself day dreaming, I quickly glanced over onto the other side of the road and all I could see was brand new vehicles being driven. There I literally was in my car that was falling to bits whilst everyone else was driving their own brand new motors. I mean where to they find the resources?

After briefly thinking for a while, I came to the conclusion that not everyone can afford brand new vehicles, so here are my ideas.

1) They buy the cars on finance, more and more people are getting things on finance that they really cannot afford to pay off, and then is ultimately why the economy has come crashing down in the first place. People go and get the best vehicles around and they literally cannot keep up with the monthly payments that they commited themselves too for so long.
2) In my opinion this is how a lot of people are getting their vehicles and it is the best possible way, something that could in fact overtake buying vehicles is car leasing. You just pay a monthly fixed rate for a new gleaming car and you do not have to worry about all of the repair costs. At the end of your yearly or two yearly contract you pass the car back and then get yourself another brand new one.

To be honest the second option sounds so interesting that I might just go a lease a honda tomorrow.

Do you need to lease a vauxhall

More and more cars are coming on to the roads everyday; there is now a huge amount of vehicles on our roads that we simply do not know what to do with. The government are even getting concerned because they have stated that they will be offering a huge amount of money for people with vehicles that are older than 9 years old.

One of the main problems though is that even with a grant people cannot afford to buy new vehicles, they are way too over priced and they cost a fortune when they break down. The car industry has taken quite a knock during the credit crisis, but there are two sectors which are succeeding and they are car leasing and car sharing.

There is a huge amount of positiveness that can come from these two schemes, lets take a brief look car sharing programs.
1) If you commute in a city then joining a car sharing scheme is definatley something to consider. It will keep costs at a minimal and you won't have to worry about things such as tax, insurance and break downs. Just simply book in your time online or by phone and then go and pick up your drive.
2) It helps keep pollution to a minimal throughout the environment, if more people joined car sharing schemes than it would reduce unnecessary emissions.

Next are the benefits that can be had from car leasing
1) If you drive a vehicle quite often and tend to do a lot of miles then car contract hire is probably the best choice, you will get to drive a brand new vehicle, avoid all the costs that come with it then when your contract is up trade it in to get another brand new car.

For great ford car leasing deals and vauxhall car leasing deals 

As the new car market plummets to another all time low, there is better news in the second hand vehicle arena as auction houses are starting to see climbing figures.

There is no dispute that the new car market is in real trouble. Lay offs have been announced across the board at car firms, with major manufactures really struggling with production as demand is so low. The luxury car market has also been hit, with Bentley announcing job losses last month. Official figures show a 30.9% reduction in new car registrations in January as compared to the year previous according to the Society of Motor Manufactures. This drop is said to be the largest of its kind for over 30 years and the direction shows no signs of changing soon. Industry experts are suggesting that the new car market won’t see an upturn for at least three years.

The market for second hand card has not been hit so hard, in fact there have been suggestions that numbers are healthy. Two of the countries most well know auction houses, Manheim and BCA have come forward to state that they have seem some record numbers of cars being put up for bidding. BCA announced that there were more sales of cars and vans in January this year than any year previous and the vehicle prices have risen for three months on the trot. Estimations have been put forward that suggest an average £300 increase.

Van leasing and car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is a likely result of people choosing to lease their vehicles during this economic downturn rather than commit to purchasing them outright. Out of all the countries in the UK car leasing in Cardiff has seen the biggest boost.

Average wholesale van costs went up by close to £140 according to the other well known auction house – Manheim. The increase marks the first upturn since last year’s September. 4 wheel drive cars have seen the steadiest increases with numbers improving six months in a row.

In the 21st century cars are a must, if you are solely relying on public transport then be prepared for a stressful journey. People just want to have the best cars around and they end up setting them back a huge amount.

But is it worth the hassle of buying a new car these days? Let as have a look at why I just do not like this.
1.) The new car models have been manufactured not to last very long so you have to go out and buy a new one.
2.) Even if the cars were built to last people are spread out all over the country, so basically people cover a lot more miles than they used to in the old days.
3.) Service parts for a vehicle cost a fortune.

I think back to when I first got my drivers licence, it was an amazing time, but I was driving a car that had been built in 1985 and done a huge amount of miles but never let me down. These days I like to purchase newer cars but they always end up breaking.

Most people decide to purchase their vehicles on finance so by the time they pay them off the car would be dead anyway and then they would have to go and buy a new one, the manufacturers are very clever.  So in my opinion car leasing is probably one of the best options you pay probably less than you would as a monthly rate for finance, then when your term is up you hand the car back and get a brand new one, plus avoiding all of the cost of repairs and break downs.

Great Mercedes car leasing or BMW car leasing.

How far has car industry technology come in recent years? From being a luxury way back in the 1930’s to the cheap affordable way you can buy them now using car contract hire it is amazing just how far they have come.

The knowledge of the games industry is the best way I can talk about the change in technology. With this I am going way back to the days of the Super Nintendo Entertainment System. I could cover the first ever racing game but seeing as I was only really around from the realease of the SNES it is best that I only cover the time after this. One of the first driving games I ever played was F1 pole position which was released way back in 1993, which, for it's time was brilliant.

In the short space of four years see's the release of F1 pole position 64 on the Nintendo 64. The jump between the two games is simply astonishing. The cars have gone from being 2-D to 3-D which for it’s time was a giant leap in technology. The next jump skips the next generation of consoles and forms itself onto the PS3 and Xbox 360 as some of the graphics on the driving games on these consoles are so realstic it is truly unreal.V.

Of course the transition did not just happen to the gaming industry, there have been many advancements in the technology of the car over the same period of time. The biggest and best in my opinion isn’t the amazing new Ferrari’s you see being released it is in fact the Hybrid car. They save on a lot of energy which is going to be useful when all the oil runs out in the not too distant future and in all honesty some of them look pretty awesome. The newer models of the Hyrbid enable you to put more charge into the battery when you brake the car.

Of course not to be forgotten is the brilliant to shut the kids up, T.V in the car as well as heated seats to calm the Mrs down during a heated 'you've got us lost' argument.

The Hyrbid car is only going to increase in sales (after the recession that is) and will certainly be the car of the future, but for nowl, you need a car that is both decent and afforable. Leased cars can work out a lot cheaper? The Audi contract hire looks pretty good as well as being as little as £214 a month.

From April 2009 it has been announced that there are new rules regarding tax relief on business cars. This could make quite a difference to the capital allowances so it may be a lot more practical to change your car sooner than you had anticipated.

This Pre-Budget report details allowances for cars are based on the vehicles co2 emissions. The ones mainly affected will be those acquired after the 31st March 2009 for companies and for sole traders and partnerships this will apply after 5th April 09.

After April it will only be cars with co2 emissions that are up to 160g/km that will attract allowances at just 10%. Therefore buy a car prior to April and keep the higher rate of relief.

It is thought that even the more upmarket cars with emissions up to 160 g/km may be a better proposition to buy now. At the present time if you are contemplating buying a car which costs more than £12,000 writing down allowances will be compressed to £3,000 a year. You are entitled to a balancing allowance when getting rid of it. Ultimately the entire capital cost of the car is allowed for tax in its lifetime.

These new rules will take away the £3,000 limit plus the allowance. In the case of the expensive car which normally loses its value far quicker than the rate of capital allowances, this will mean that there could well be a shortfall in allowances as in comparison to the cost of the car in its lifetime.

Under these new rules it appears that businesses that lease cars that are expensive should indeed benefit. The limit on tax relief on lease rentals for cars exceeding £12,000 will be replaced by 15% disallowance of lease rental payments on vehicles with co2 emissions that are above 160g/km. This will be regardless of their cost.

Some of us choose to purchase our vehicles and some people choose to lease them. The question is which is best option to take, lease or buy?

Look upon a car lease as a long term rental. You do not really own the vehicle and at the end of the lease you will then return it and pay any end of lease cost, that are due, to complete your contract.

In contrast when you buy a car and pay for it with a loan, the car remains your property at the end of the loan period. If you then wish to purchase a new car it’s up to you to trade in or sell the old one.

Most new cars will lose their value as soon as you drive it out of the sales room! Obviously it also depreciates with age and when the mileage increases.

Lease payments will cover just the portion of the cars value that you use during the time you drive it, the depreciation and not its complete cost. Finance charges are added on to your payment.

When you purchase a car with a loan you are liable to pay back its full cost, plus finance charges. Depending on your deposit or trade in value of another vehicle, this can obviously result in higher payments than for a lease, even if you get a long term loan.

At the end of the lease you may be liable to pay excess mileage fees. A maximum number of miles are usually stipulated that you can drive whilst you are leasing the vehicle. It is usually policy that you would repay a charge per mile for every mile driven over that limit. You can often buy extra mileage at the beginning of the contract at a cheaper rate than you would pay for the extra mileage at the end!

As regards damaging the car, the leasing company would naturally expect a degree of wear and tear. However the car will be checked for any damage or excessive wear and tear when it is returned at the end of the contract.
A fee would have to be paid should you choose to end a car or van lease early.

It is a misconception that the car lease company takes responsibility for the maintenance of the vehicle during the lease period. You will be responsible for the costs of maintaining the car, just as if it was owned by you.
Warranty on the vehicle is covered whoever owns it. Usually you will find that lease terms end before a vehicle goes out of warranty.

The best way to try to get an idea as to the deal that would suit you best is to work out how much you would actually be prepared to pay to own a vehicle. Add up all the payments you would make on the vehicle and then compare that to the value when the payments have ceased. Owning a car does not usually make money unless maybe when buying a classic car.

So, is it best to lease or buy?

Leasing:

A car lease might be best if you need a new car every two to three years.
You would prefer to drive a new car but cannot afford one.
On average you drive 15,000 miles or less each year.
You would not be using the vehicle in such a way that it would cause excessive wear and tear.
You are not in a position to make a large down payment.
You use the vehicle for business and are able to write off your lease expenses.

Buying:

You plan to pay off the car and keep it to avoid loan payments.
You are in a position to pay for repairs after the warranty period has passed
You put more than 15,000 miles a year on a car
You have credit issues and sometimes if this is the case it will be easier to buy than to lease a car
You may intend to trade it in for another car in less than two years