Warning Issued About Car Leasing Problem
by: Guest
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Word Count: 479
A recent report into business vehicle funding still shows contract hire as the most popular method of funding and growing in acceptance with consumers but whilst contract hire carries great benefits there is one major drawback that is being used to rip customers off and that is end of term charges. Too many contract hire companies now rely on these charges for their profits having sold the deal on a low rate to the customer in the first place. Statistics show that the average % of vehicles returned with damage has increased from 32% in 2001 to 38% in 2005 with the average damage recharge increasing over the same period from £183 to £215 and if my postbag is anything to go by 2006/7 will far exceed the number of occurrences and average recharge in 2005. And these are just recharges for damage. They do not take into account damage that is repaired before return of the car and other charges and penalties for late or missing services, missing spare keys and tools and excessive wear and tear. In the same report they suggested that damage recharges now run to £100 million every year. To give an idea as to what small items of damage could cost let's look at some examples: Minor Alloy Wheel Refurbishment £38 + VAT Body or Paint Repairs £19 + VAT per hour Mechanical/Electrical work £34 + VAT per hour Glass Repair - Per Window £28 + VAT Air Con Recharge £100 + VAT So if you are to really benefit from contract hire or PCP (if you are going to hand your car back) make sure that you keep an eye on the damage repairs and if necessary if you run company cars introduce tough terms into contracts of employment to ensure that staff look after their cars or pay all or part of any penalties. Finally on this subject there are a growing number of mis-fuelling incidents, one reported to have cost £4,551 - a good reason not to try to drive the car, or even start the engine after putting the wrong fuel in the tank. Just get the car pushed out of the way and have the vehicle drained. Graham Hill, the author of eBook - An Insider Guide To Car Finance (found at www.carfinanceandleasinginfo.co.uk) provides this sort of information weekly in his newsletter. The book explains the different types of finance covering such finance as personal loan, hire purchase, personal contract purchase or PCP, secured personal loan, unsecured personal loan, contract hire or car leasing, personal lease purchase, secured personal loan, re-mortgage even cash purchase on new cars and used cars. Visit his website for more information. Finally take care of excess mileage charges and know what you have agreed to in the contract. One leasing company reported a driver who had incurred £30,000 in excess mileage charges!
About the Author
Graham Hill is the author of eBook An Insider Guide To Car Finance which explains the different methods of car finance as well as exposing scams. He has been in the industry over 20 years, has appeared on Radio 4's Moneybox and writes monthly for Motor Finance and occasionally for the Sunday Mirror. His controversial exposure of scams in the industry has alerted consumers and business users to expensive and sometimes illegal advice.
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