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Posts Tagged ‘contract hire’

General Motors, one of the largest car manufacturers in the world, has filed for bankruptcy protection in America. For as long as cars have been around, General Motors (GM) has been one of the big three car manufacturers in America and one of the largest in the world. Now the motoring industry is really struggling, and of the three biggest car manufacturers in America two have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what does all this mean to us?

Well, for UK consumers, the answer is probably not much. If you have a car that was made by GM, there’s no need to worry about the future of your car and any parts you may need, as the company has not gone out of business entirely. After receiving protection from the American government, they hope to be through the worst of it in as little as three months. Further to this, the European branch of GM, which consists of the British brand Vauxhall and the German Opel, has already been sold off to a Canadian company who have agreed to do everything in their power to save the 5,500 UK jobs that could be at risk.

For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.

Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your agreement takes into account your projected mileage and wear and tear, so your car won’t decrease its financial value over the course of the contract and when your agreement ends you get to swap the car for the new model of your choice. With the car industry in such a state of disaster, it could be the best way to make sure that any future disasters don’t affect you too much!

For great deals on van leasing and van contract hire

General Motors, one of the largest car manufacturers in the world, has filed for bankruptcy protection in America. For as long as cars have been around, General Motors (GM) has been one of the three largest producers of cars in America as well as one of the world’s biggest car companies. Now the motoring industry is really struggling, and two out of the three big American car giants have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what difference will all this make to us?

Well, for UK consumers, the answer is probably not much. If you have a car that was made by GM, you don’t need to worry about the possibility that you might not be able to get parts for it in the future, as the company has not gone out of business entirely. After receiving protection from the American government, they predict the company will be reconstructed in as little as three months. In addition GM Europe, which is responsible for Vauxhall and the German brand Opel, has been bought by a Canadian company who have said they will do all they can to protect the 5,500 UK jobs at stake.

For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.

Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your agreement takes into account your projected mileage and wear and tear, so the value of the car will not decrease over time and when your agreement ends you get to swap the car for the new model of your choice. While the car industry is struggling to stay afloat, it could be the best way to make sure you’re not affected by any future surprises!

For great deals on van leasing and van contract hire

Thousands of Honda employees have returned to work at the company’s Swindon plant after production was halted for four months in response to the struggling car market. All 3,400 of the returning workers will be taking a pay cut until 2010 but are glad to be back at work with their jobs secure after spending the last four months worrying about the possibilities.

The factory was forced to close while the company decided on the best way of dealing with the problems caused by the global recession and the effect the economic downturn has had on the number of car sales and contract hire agreements. The motoring industry has been hit hardest of all and almost all car manufacturers are having difficulty staying afloat, but the situation at Honda and how they have recovered could stand as an example to other companies who are still struggling. Their decision to temporarily close the Swindon factory has allowed them time to make important decisions about the future of the business as well as perform long-planned maintenance work. During the four months downtime the production lines were stripped down and rebuilt, and they took the opportunity to redecorate the whole plant, wherever possible using existing employees with the relevant specialist skills or training. 

But not everything is good news. A further 1,300 Swindon employees chose to take voluntary redundancy at the time of the closure, many of whom still have not managed to secure alternative employment. And though the workers now have peace of mind that their jobs are safe, they have agreed to a pay cut of 3%, or 5% for those in management positions, for the duration of the next 10 months. The reopened factory is currently only running at 50% capacity, with a predicted total production of 113,000 vehicles in 2009, less than half of the original 228,000 estimate.

In short, it’s a small victory but the company is not out of the woods yet, Honda car leasing and sales figures will have to increase significantly over the next few months if they want to avoid any further disasters. The new Honda Jazz model, due to start production at Swindon in September, should increase sales and work towards securing the long-term future of the plant. Not to mention as the economy begins to recover buyers will be taking advantage of low car prices as across the board from Honda to Mercedes, car leasing and purchase prices are cheaper than ever.

For great deals on van leasing and van contract hire

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. After a while I glanced over to the other side of the carriageway, to my astonishment for at least 30 minutes every car that went pass was so nice. There I literally was in my car that was falling to bits whilst everyone else was driving their own brand new motors. I mean how do they get them?

After briefly thinking for a while I have come to the decision that there are only two ways of getting these brand new vehicles, please see below.

1) They purchase cars on finance which they really cant afford and then they struggle to make repayments. 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. Car leasing lets you get a much nicer car than you could usually have, without paying for it all at once. You pay a monthly rate for a brand new car; you simply do not have to deal with repairs, MOTs or anything else. When your contract has ended you just hand the car back and get a brand new one.

To be honest the second option sounds so interesting that I might just go and get myself a new car on a lease contract tomorrow. it certainly sounds very tempting

Look no further for great deals on van leasing and van contract hire

Car gadgets are being released on a more frequent basis. The most popular can be fitted and unfitted easily which is especially important when you’ve got a car contract hire. The gadgets listed are the ones I think are the best.

Time to show some messages at the back of the car.
This is perfect for all of you who want to throw a message out to the drivers behind you and even better if it’s not appropriate. A must have for all people who love a bit of a joke.

Econav
This handy product actually tells you which is the best fuel-efficent route to take which is brilliant in the recession for saving that extra bit of money.

The in-car safe.
A perfect way to hold most of the other gadgets in. Although they are a great idea as they can be attached without the worry of any mess surely if your car gets stolen then your goiing to be a bit annoyed?

The alcohol breath tester.
It’s great to see if you have gone over the limit or to just have a bit of a laugh when your out not in your car to see how many units you have had. Not sure that having it in the car is the best message to put out, but there you go.

Taxi service from Dad
I get constantly moaned at as my dad has to take me everywhere but there is no way of being able to afford the lessons! I will have even less money if this is put into place as it tells you exactly how much you have to pay for each lift you get. Great idea for dad’s to get their own back.

Fan that works in the car.
A great idea for all those cars that don’t have air conditioning. Great in the summer when the heat gets too much for a car without air-con.99 you cant go wrong at all.

Speed camera alerts.
A perfect gadget for the motorist who loves to speed, and who doesn’t. You have enough time to slow downl, a simply brilliant gadget. However it doesn’t tell you where the police are hiding, so be warned!

The famous Tom-Tom
Easily the best gadget out there. Simply brilliant for when you are having those arguments about who made the wrong turn, they no longer exist.

As all of these gadgets can be moved then if you are planning to be constantly switching cars there is no extra worry. Car contract hire is a brilliant idea and you can carry the gadgets from perhaps a Punto all the way to as top of the range Audi with a Audi contract hire.

The average credit card holder in Britain is now in over £2000 of debt. We spent years spending what we wanted when we wanted it but it’s clear from the slump in retail sales that the time has come to tighten our purse strings. Here are a few tips on how to save money and make the most of what you already have in the recession.

Mortgage: The mortgage is the most expensive outgoing for a lot of people. Your home is the most important thing you own, and something that it is certainly worth taking out a loan for. But that doesn’t mean that it’s an inevitable burden we all have to deal with. Shop around and make sure your deal really is the most beneficial one for you. There are thousands of alternatives out there, you just have to make sure you’re getting the most out of what’s available. Overpayments are a good thing – if you find yourself with a bit of extra cash to spare one month, don’t keep it aside to fritter away on things you don’t need, make extra payments on your mortgage whenever you can and you could save thousands on interest in the long term.

Credit cards: Just resist. Make sure you don’t spend money you don’t have, if you won’t be able to afford to pay it off that month, don’t buy it. Try to pay off any debt you owe as soon as you can (don’t just pay the minimum each month if you could afford more) and if you don’t think you can resist spending more on your cards again, cut them up. Always make sure you don’t go beyond your means.

Car: Owning a car is a really expensive business. It’s not just the cost of the car itself, but there’s road tax to consider as well as maintenance, insurance, servicing, MOT… And the list goes on. Think carefully about whether or not you really need a car. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay the car off in manageable monthly instalments and often they will throw in other additional extras like road tax or servicing costs as well. You just have to search for the best deal. And the best thing is that often the more desirable car you choose with contract hire the better deals you can get – you could find yourself with a car you would never have been able to afford to buy outright, even in better times!

Sell sell sell!: If you have clutter and unused items around your house, don’t just turn a blind eye to them or take them to your local charity shop. If you’ve got drawers full of clothes you don’t wear or gadgets you never did use, there is someone out there who will want them. Ebay is a wonderful thing, it’s quick and easy and once you get a bit of practise at how to advertise on there you could find that you could make a nice little extra bit of cash out of your old junk. Give it a go – you’ll never know until you try!

The French government have just announced a €6.5bn loan to support the country’s sinking car industry. It is the latest in a long line of similar measures taken by authorities around the world to protect jobs and the economy through the recession. A worldwide slump in car sales has left manufacturers struggling, and millions of workers are in danger of losing their jobs.

In the UK there have already been significant job losses despite the industry receiving large amounts of money from the government to keep the business afloat. A number of factories have had to close temporarily and the Japanese carmaker Nissan has become the latest to announce that it will be cutting almost 10% of its global workforce, including 1200 positions in the UK.

In these difficult times of recession, it’s hard to see how the car industry will recover. With things as they are, most people are feeling the strain and need to keep a close eye on their finances. It’s safe to say that buying a car is the last thing on most people’s minds, and until the economy starts improving the motoring industry can’t do much more than bide its time.

But direct sales don’t necessarily have to be the only option for car dealers. If the problem is that people don’t have enough money to buy cars upfront, the answer could be to offer more car contract hire deals where customers lease their car on a monthly basis until the cost has been paid off. The availability of these deals means that buyers have a far greater choice when it comes to cars – they have the option of choosing a more expensive car that would normally be out of their price range, which means more money for the car manufacturers in the long run.

Contract hire is a great deal for the consumer too, not only does it mean you get a wider choice of more desirable cars but the payment is in manageable instalments and there are often loads of other benefits thrown in. The contracts often include extras like servicing costs and road tax, so there’s less to worry about. Really, everyone wins!

So you want to look for a new car but just can’t seem to make your finances stretch far enough? Or perhaps you’ve already seen the car of your dreams, but know there’s no way you’ll ever be able to afford it. You’re not alone – the motoring industry has been hit hardest of all by the credit crunch and sales have reached an all time low. It seems no one can afford to think about purchasing a new car right now.

But don’t let that discourage you – there is still another option. There is another way you could get the car of your choice, and you wouldn’t even have to pay upfront for it. Car contract hire or leasing agreements are a great way to choose the exact car you want and you only have to pay one manageable monthly fee.  

I know what you’re thinking, there has got to be a catch, right? Well, in fact, no there really isn’t. Sure you have to sign a contract but you get to choose from any car on the market, including those that would normally be out of your price range. In fact, the more desirable the car, the better deals you can get. It’s not like buying a new car where the value decreases with time, most contract hire agreements are based on your projected usage so they take wear and tear into account and when the contract ends you can trade it in for a newer model.

Choosing contract hire will usually also help with the running cost of having a car – often the road tax and servicing costs are thrown in to the monthly instalments so you won’t find yourself suddenly landed with huge repair bills. And being able to trade the car in every couple of years means you’ll always have the latest model so it’s less likely to break down.

Basically, it’s a really beneficial and financially viable way of getting a new car without the worries of buying outright – it really makes sense, especially now when times are hard. And who knows, you might even be able to get that dream car after all!

Over the last couple of weeks the UK has been hit with some of the most extreme weather we’ve seen in ages. The first week of February brought the heaviest snowfall we’ve seen for 18 years, causing schools to close and leaving over 6 million people stranded unable to get to work. Most public transport was disrupted or cancelled and many roads were deemed unsafe and closed off due to the icy conditions.

The continuing bad weather is a real worry for drivers everywhere, with the increased risk of accidents on the icy roads as well as all sorts of other problems caused by the extreme conditions. There have been a number of incidents of sudden heavy snowfall trapping drivers in their cars, while in other parts of the country the melting snow has combined with heavy rains and severe flood warnings have been issued.

All this is bad news for car owners, not just because of the heightened risk of driving on the roads, but also because a damaged car can be a costly business. With the recession affecting us all, most people really couldn’t afford to splash out on a new car if something happened to theirs. And that’s the real problem with owning a car. It’s brilliant until something goes wrong, then it can suddenly become really expensive. You might think it won’t happen to you, that you’re a careful driver who won’t get into that sort of situation. But as the last few weeks have proved, you can never help what happens on the roads, and you certainly can’t predict it.

The problem is that once you buy a car it becomes entirely your responsibility. Then the older the car gets the more likely it is to go wrong, especially in extreme weather conditions like those we have been experiencing, and the more it will cost you when it does. And even when you do get it fixed, a car only ever decreases its value over time so it still won’t be worth half what you paid for it.

The people who manage to avoid these worries are those who opt for a car contract hire deal instead of buying a car outright. It doesn’t mean the car isn’t yours, it just means that you pay for it in regular monthly instalments and often you get extra benefits thrown in like road tax and servicing costs. So if something was to happen, you wouldn’t have to foot the whole bill yourself. And the best thing is that when the contract hire expires after a couple of years you can trade the car in for a new one, meaning you’ve always got the latest updated model. And as you’ll always have a new car, it won’t have had time to wear out, and is less likely to break down in the first place!

Car leasing, personal contract purchase, contract hire, lease purchase and car loans are all different ways to finance the cost of cars and vans. The variety of vehicle financing options available today can be confusing so I thought I would focus on ‘contract hire’ and explain how this technique works.

Leasing a car basically takes care of one of the biggest financial issues associated with acquiring a new vehicle which is depreciation. The value of your brand new car falls through the floor, even before you have driven away from your supplier.

When you take out a car lease the residual value of your chosen car or van is calculated. This is the estimated value of the vehicle at the end of the agreed lease period, usually 2 or 3 years, based on your expected mileage in that period. The calculated residual value of your chosen vehicle is then deducted from either the current manufacturers retail price, or a value agreed with the leasing firm, and you will pay the remainder through your monthly lease payments. So the higher the residual value in comparison with the current value, the less you will be paying each month.

Contract hire is a popular vehicle financing technique that isparticularly beneficial for customers who are registered for VAT such as small businesses and self employed people. If your vehicle is used exclusively for business purposes you can reclaim 100% of the VAT. Even if your car or van is used for some personal use you can still reclaim 50% of the VAT.

A contract hire agreement means that you have actually hired the selected car or van for an agreed period, usually between 1 and 5 years, during which time you will pay the agreed rental, based upon mileage. You will return the vehicle to your supplier at the end of your contract hire period, much the same as a car leasing contract. You will not encounter any painful surprise disposal or depreciation costs.

Contract hire will generally include full vehicle maintenance which can optionally include routine servicing and even replacement tyres. Up to 100% of the rental charges can be offset against taxable profits and minimal capital outlay is required.

It’s therefore no surprise that contract hire is the favoured financing option chosen by many businesses and self-employed people.

For cheap car leasing I recommend Nationwide Vehicle Contracts.