Car Leasing Explained

leasing explained
How do I know if car leasing is right for me? Are you the type of person who likes to change their car every few years…?
If so, then ask yourself a few simple questions:
How much did you spend when buying your last car?
How long did you keep the car for?
How much did you sell the car for?
To work out roughly how much your last car cost you per month, let’s do some simple arithmetic:what you spent minus what you sold it for divided by number of months you owned it Of course, you’ll also need to add the cost of any road tax that you had to buy during the time that you owned the car and work out how much interest you paid out (if you took out a loan), or how much interest you lost (if you took the money from a savings account).And the costs and inconvenience don’t end there; when you finally sold the car, how long did the process take and much did you spend on advertising. Even worse, if you part-exchanged your car, how much less than the market rate did the dealer offer you.On balance, when you add everything u– the costs, the hassles, the inconvenience – and you look at what you could have leased for the same money or less, you have to ask yourself: “why on Earth would I ever buy a car again…?”
Still not convinced…? why not read “A typical new car buyer’s journey” below:Contract Hire and Personal Contract Hire (PCH)One of the most popular forms of car leasing in the UK is Contract hire(including Personal Contract hire), which is available to both business users and consumers (private individuals).Contract Hire offers most of the benefits of car ownership, but without many of the hassles normally associated with it; in essence, you lease (long-term hire) a brand new car for a fixed period – normally two or three years – at a predetermined annual mileage allowance to suit your needs.Contract Hire is a simple and very cost effective way to fund any number of vehicles. Simply choose the vehicles you want, we deliver your new car to your door and you pay a fixed amount every month.These payments go on for an agreed period of time, usually between one and four years. At the end of your car lease agreement, we collect your car (which is then sold back to the motor trade, normally through a trade auction) and you’re free to choose another vehicle.Importantly you never own the vehicle, we do. As it never appears on your balance sheet, it remains a business expense. Because we take the vehicle back, we agree ufront the mileage your drivers will do on an annual basis and the number of years the contract will run.Using this information, we calculate how much the car will be worth at the end of the contract, which is factored into your monthly payments.A typical new car buyer’s journeySo, how do you go about buying a new car…?Well, your quest might start by taking a look at a manufacturer website for a car that you’ve seen advertised or that drove past you in the street one day. This is normally followed by a visit to your local dealership, so that you can see the car for yourself.Of course, not wanting to be “taken for a ride” – so to speak – you’ll want to compare the price that your local dealershigives you with one – or even two – other dealerships, just to make sure that you’re getting the best price.Finally (and certainly for the more tech-savvy) you’ll want to shoaround online, just in case there are better deals somewhere out there in cyberspace.So, although it has taken some time and considerable effort, you’re somewhat satisfied that you’re getting a good deal, so you buy your new car. But whether you buy the car with money from a savings account or you take out a loan to cover the cost, you’ll need to factor interest into your calculations, not to mention road tax (for as long as you keethe car) and depreciation (which is the difference between what you bought your car for and what you will sell it for in the future) when working out your motoring costs.And the headaches don’t stothere; after happily motoring along for 2 or 3 years, you’re ready to change your car again. You’ve already decided on your next new car, but, you have a problem: How do you dispose of your current car…?
Naturally, you could advertise your car for sale online or in the newspaper, but you’d really prefer not to have strangers coming to your house. Besides (given your hectic schedule), weekends and evenings are sacrosanct – quality time to be spent with your family; you’d rather not waste your precious time haggling with “tyre-kickers” over what they think your car is worth.Or you could always trade-in your car at the dealership where you’re going to buy your new car, but of course you probably won’t get the best price for it, as they need to build in a margin to resell your car on their forecourt.However you do finally manage to sell your car, it’ll certainly take time, effort and may even end ucosting you money.And what’s the alternative…?Well, leasing a new car could be your answer.With used car values falling year-on-year, coupled with an uncertain economy and rising household bills, the growing risks associated with new car depreciation have forced car buyers to look at cost-saving alternatives.And being the most advanced car leasing market in Europe, the UK has no shortage of leasing companies, whose expertise is in buying hundreds of thousands of new cars every year and recycling them back into the increasingly voracious used car market at end of contract.More often than not, if you’re looking to change your car regularly (say every 2 or 3 years), car leasing works out less expensive than ownership, because not only are you tapping-into the buying power of the big leasing companies, you’re also removing the costs and hassles of selling your car when you’re ready to change again.An even more compelling reason is that you don’t even need to hunt from dealershito dealership, as the best leasing rates can often be found online, at a time that is convenient for you – day or night.And it’s the convenience and the ability to manage your motoring costs more effectively – coupled with the cost saving benefits – that are leading to unprecedented levels or personal car leasing in the UK.
Why choose Contract Hire?Contract Hire is quickly becoming the #1 choice for motorists throughout the UK. There are many reasons why Contract Hire is so popular:It offers off balance sheet fundingIt is a VAT efficient way of operating a company carIt provides fixed motoring costs for the contract periodIt removes the uncertainty surrounding future, ever fluctuating residual valuesIt allows to you takes advantage of Car lease 4 U purchasing powerIt frees uyour staff time, by reducing in-house administrationIt offers detailed reporting is requiredIt is available with an optional monthly maintenance charge (which covers routine maintenance and servicing costs)Low monthly rentalsThere’s no large initial outlay and monthly payments are fixed, so it’s good for cash flow and makes budgeting a cinch. You pay a fixed monthly rental and – at the end of the contract – hand the car back to the leasing company with nothing to pay (provided that the car meets the mileage and condition criteria agreed at the start of the contract).Hassle-free motoringSo you don’t have the hassle of selling the car when you replace it. It also means you don’t have to worry about the risk of falling used car values (known as residual values). If the second-hand car market drops suddenly, that’s the leasing company’s problem, not yours.Good for businessMost of the fleet management can be handled by the fleet provider, which frees ucompany resources and the funding isn’t shown on the balance sheet, which reduces a company’s debt liability and helps to improve your corporate credit rating.End of contractAt the end of a contract hire agreement – after the vehicle is returned –car leasing companies will charge for any excess mileage (over and above the total contracted mileage) and any damage (or unfair wear and tear) on the vehicle. These charges can vary from reasonable to very stee- depending on the leasing company – so it is advisable to check the small print on your contract before you sign. Also, if you end (early terminate) a contract hire agreement early, the penalties can sometimes also be quite high – typically 50 percent of the remaining rentals. So if you’re unsure about the length of time that you want to keethe car, it may be more prudent to pay slightly more per month for a shorter contract length.

Vauxhall Confirm Next Astra to be Built at Ellesmere Port.

Vauxhall Confirm Next Astra to  be Built at Ellesmere Port.

 Created Date:  18/05/2012.
Vauxhall today confirmed that the next generation of Astra  will be built at the General Motors owned car manufacturers plant in Ellesmere  Port in Cheshire. The news will mean that 2100 people’s jobs are secured at the  plant which will help boost confidence in the current economic climate.
This also means that northeast jobs will be secured until the early  2020’s.Ellesmere Port will be the lead plant of two in Europe building the new  Astra. Production of the car is due to start in 2015. The plant will also create  700 new jobs in the area to add to the existing staff working there.The decision  comes are Vauxhall secured a new labour agreement with their workforce  yesterday. The agreement which will have staff working more flexible hours in a  3 shift pattern, spanning 24 hours, rather than the current 2 shift pattern. The  new pattern will come into force in 2013 and run through the entire lifespan of  the new Astra.Operating on the new three-shift pattern, the plant is expected to  run at full capacity.
This means the plant should produce a minimum of  160,000 vehicles each year. To backup the plans, Vauxhall plans on investing £125 Million to revamp and upgrade the plant to achieve its goal.Potentially the  most beneficial factor in terms of economy is that up to 3000 new jobs could be  created in the supply chain with Vauxhall committing to add 25% to the local  suppliers.The future of the Cheshire plant has been under threat for some time.  This is due to General Motors (GM) delicate financial position. Since 1999 Opel,  the European arm of GM which Vauxhall are a part of, has lost £7 billion.
Despite being Vauxhall’s most efficient plant, Ellesmere Port has been  suspected to close because it is cheaper and easier to get rid of workers in the  UK than it is in the rest of Europe. However, due to the good news of the  Cheshire plant remaining open, it brings the future of Bochum, Germany into  jeopardy.Vauxhall Chairman and Managing Director, Duncan Aldred, said: “This is  great news for the Ellesmere Port plant, our employees, the local community, our  suppliers and the Vauxhall brand and the UK. We have been able to develop a  responsible labour agreement that secures the plant’s future. With Ellesmere  Port’s proven build quality and a new agreement that ensures excellent cost  competitiveness, this facility will provide additional employment and, as the  lead plant for the next-generation Astra, will be one of the cornerstones of our  European manufacturing footprint.”

Car Leasing Offers | Car Contract Hire | Best Car Lease Deals UK

Car Leasing Offers | Car Contract Hire | Best Car Lease Deals UK.

A guide to company car tax for drivers

A guide to company car tax for drivers For more info please visit http://www.carlease4you.co.uk/ Company car tax is designed to do two things. Firstly, to reflect the benefit of you having a car for private use. And secondly, to encourage you to choose a more environmentally-friendly vehicle. With road transport responsible for about 20% of all emissions, the Government is committed to encouraging drivers to choose greener vehicles. That’s why the amount of company car tax you have to pay is directly related to the amount of C02 produced by your car (measured in grams per kilometre – g/km). How company car tax works You pay company car tax on a percentage of the P11D value of your car. The P11D value is the manufacturer’s new price, plus VAT, delivery, number plates and any optional extras. The percentage of the P11D value you pay tax on is decided by the CO2 emissions of your car and fuel type. To find your emissions figure, you can either look at the car’s vehicle registration certificate, or use an official guide, available from the Vehicle Certification Agency (www.vca.gov.uk). P11D percentages start at 10% for a petrol car with C02 emissions of 115 g/km and below and rise to 35% for 235 g/km. Once you have worked out your P11D value, discovered what percentage of it you’ll pay tax on, and calculated the figure that amounts to, bear in mind that you pay tax on it at your higher rate (either 20% or 40%). This is normally deducted every month from your salary. Diesel cars and your tax bill Diesel engines produce less CO2, so your actual company car tax bill should be smaller than the equivialnt size petrol engine. But other factors may offset this and make diesels just as expensive overall. For a start, diesel models usually cost more than the petrol equivalent, so you have to make sure the higher P11D price doesn’t outweigh any advantage from a lower tax banding. Diesel fuel costs more at the pumps than petrol too, so you need to meet the predicted fuel economy figures from the manufacturer to really benefit. And finally, diesel company cars have a 3% surcharge added to their tax band, bcause of concerns about particulates and other pollutants that come out from diesel exhausts. Alternative fuels and your tax bill There is a 3% discount for hybrids (petrol/electric cars), a 2% discount for LPG and a 6% discount for electric-only cars. The ‘free’ fuel benefit You may face a further tax if your employer provides ‘free’ fuel for private motoring. This could be because you use a company fuel card, for example, and don’t repay the private usage element, or because your employer pays for travel between home and work. The taxable benefit is now based simply on the Government derived figure of £14,400, multiplied by the same percentage derived from the CO2 table. To find out more please visit http://www.carlease4you.co.uk/

http://carlease4you.co.uk/

http://carlease4you.co.uk/.

Car Lease 4 You,Taxation

Car Lease 4 You,Taxation.

Car Lease 4 You,Car leasing,van Leasing Specialist,contract hire in Northern Ireland including belfast,armagh,newry,omagh and Dublin.Car and van lease is a good why to fund your vehicles.fleet management,call about your contrct hire.Car lease belfast

Car Lease 4 You,Car leasing,van Leasing Specialist,contract hire in Northern Ireland including belfast,armagh,newry,omagh and Dublin.Car and van lease is a good why to fund your vehicles.fleet management,call about your contrct hire.Car lease belfast.

Car Lease 4 You,Car leasing and van Leasing Specialists in Northern Ireland including belfast,armagh,newry,omagh and Dublin.Car and van lease is a good why to fund your vehicles.fleet management,call about your contrct hire.Car lease belfast

Car Lease 4 You,Car leasing and van Leasing Specialists in Northern Ireland including belfast,armagh,newry,omagh and Dublin.Car and van lease is a good why to fund your vehicles.fleet management,call about your contrct hire.Car lease belfast.

Ford C-Max 1.6 Titanium review

Ford C-Max 1.6 Titanium review.

Ford C-Max 1.6 125 Titanium

Test date 22 December 2010  Price as tested  £19,195

CLICK HERE FOR LEASING DEALS

 

What is it?

We like the Ford C-Max. We’ve already driven it in diesel form, and given its seven-seat sibling a glowing road test verdict. Here we’re testing the new 124bhp 1.6-litre petrol motor, mated to the standard five-speed manual gearbox.

What’s it like?

This is unlikely to be one of the bigger sellers, but it certainly has appeal as one of the cheaper models in the range at £1000 less than the equivalent 1.6 turbodiesel or more powerful petrol Ecoboost model. And in practice it is a very pleasant thing to hum around town in. In fact it is in urban areas where it really shines because here its excellent refinement can be really appreciated.

Ride quality on the standard 17-inch wheels is very decent – pliant over bigger bumps and settled over the choppy surfaces you normally encounter. Plus, with the lighter motor in its nose it also has a sharper turn-in and more nimble feel than the diesel.

Still, if you plan on covering many motorway miles the oil burner is the one to go for. At higher cruising speeds this naturally aspirated C-Max needs time and patience for overtaking, and the engine also becomes buzzy when it’s asked to spin at such high revs. Otherwise this is a thoroughly likeable car.

Should I buy one?

If you want something with a bit more space than a Focus or Golf, and spend much of your time around town this is a decent option. It’s comfortable, quiet, practical and very well equipped. There’s plenty of competition at this price, so think carefully about whether a high-rise hatch is for you when there are full-size estates available at this price, but if its brand of utilitarian suits your lifestyle then the C-Max won’t disappoint.

Source Autocar

 

Ford C-Max 1.6 125 Titanium

Price: £18,745; Top speed: 117mph; 0-62mph: 11.5sec; Economy: 42.8mpg (combined); CO2: 154g/km; Kerb weight: 1374kg; Engine: 4 cyls, 1596cc, petrol; Power: 123bhp at 6000rpm; Torque: 118lb ft at 4000rpm; Gearbox 5-spd manual

Should leasing companies adjust their residual values for a possible future VAT increase to 20%?

Click here for our websiteWhen a vehicle leasing company purchases a vehicle they can recover the VAT, which currently sits at 17.5%. At the back end however, they also have to account for VAT when they dispose of their vehicles, so what’s going to happen if VAT moves to 20% or more? Many contract hire companies may have a clause in their Master Hiring Agreement’s which allow them to recover the increased VAT, or reimburse VAT if the rate goes down. For a customer however it will be important to know if they contract hire their vehicles, what the leasing company policy on VAT may be, so that they are aware of potential charges in the future.Alternatively, some leasing companies may feel the used vehicle market will adjust and may take no action on their residual values or some may adjust their residual values now, to anticipate a future move on VAT by the Government. Is there a definitive answer to this question from an expert out there?

via Should leasing companies adjust their residual values for a possible future VAT increase to 20%?.