How to avoid incurring additional charges when you return your contract hire car

by A Gilmartin 25. April 2012 15:54

 

The car leasing industry is no different from any other; some companies are more reputable than others. To be on the safe side there are a few basic rules that you can follow to avoid being unjustly charged by a contract hire company for damage or missing items at the end of a car leasing term. The most important thing is to be present when your lease car is collected; it is quite surprising how many companies allow the driver to collect the keys of a returning car, from the company’s reception desk. 

Unless you are in attendance when the contract hire vehicle is collected it is going to be very difficult to dispute any claim that the vehicle had damage when it was picked up, ideally the member of staff who has been driving the vehicle should do the hand over. There have been many cases where it has been claimed that the vehicle was collected with damage. The same applies to a missing service history or spare wheel.

When handing over your vehicle the leasing company’s driver must sign to confirm that the vehicle is undamaged and everything such as the service history documentation is intact. If you do not do this and the delivery driver damages the car as he drives it back, it will, let’s face it, be unlikely that he is going to admit to damaging the car and if there wasn’t a proper handover, claim that he collected vehicle in that condition. 

There is also evidence that a certain auction house that collects vehicles for leasing companies is claiming that vehicles are damaged when they are not. It is of course important to make sure that you return your lease car in good condition. If there is paintwork that needs to be done, then it will generally be less expensive to get it done yourself, than returning it to the contract hire company and them re- charging you for the work.

The same applies when you take delivery of your new lease car; if at all possible be in attendance when the car arrives. Apart from the fact that the driver will need run through the vehicle’s controls with you, you can check the vehicle to make sure that there are no scratches or any other type of damage on the car. If it is dark when your car is delivered, when signing for it make a note that it was dark and you couldn’t inspect the vehicle properly. Most new contract hire cars are delivered directly from dealerships and it would be unusual for them to send out a damaged car but of course it’s not inconceivable that the driver could damage the vehicle on the way to your office.

 

 

 

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UK car production is on the increase.

by A Gilmartin 11. April 2012 13:16

 

Car production in February rose to an impressive 138,296 cars, well ahead of the same month last year. Many overseas companies now see Britain as a safe and stable base for car production, helping the government’s aim to rebalance the British economy; over 80% of those vehicles manufactured in the UK are exported overseas. In total car manufacturers agreed 4 billion of new investment into the UK last year.

The land Rover plant in Halewood has to work twenty four hours a day to keep up with the demand for the Range Rover Evoque. Investment into UK car production has given a tremendous boost to employment in many areas that have had high unemployment for years. The SMMT, the body that represents the industry, says that 1.34 million cars were produced in the UK last year. The previous record was in 1972 which was 2.33 million cars and commercial vehicles produced; in 2011 the total was 1.47 million cars and commercial vehicles.

So production levels are gaining on that 1972 record but there are no other similarities between the UK car manufacturing industry of today and in 1972; in the 70’s the car industry, indeed most industries, were in the grip of the powerful unions of the day; their stranglehold gradually brought UK manufacturing to its knees. Vehicle delivery dates were totally unpredictable, because production was so frequently halted by strikes.

Even when they were working, build quality was appalling, in fact quality control departments in many plants were only allowed to fault a limited number cars a day; in order to avoid walkouts. Many cars went out to dealerships with known faults. The union action was on the whole destructive and ultimately self-destructive because the members they represented lost their jobs as the industry was destroyed. Those days are gone and what the union and management do, is what they could have done in the 10970’s, talk to each other.

Nowadays the unions are sensible; they have more of an understanding of business and know that if they go out on strike it is extremely damaging to a manufacturer and in the longer term their members, because it would make investing in the UK unattractive for a car manufacturer.


 

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Pay as you park tax.

by A Gilmartin 23. March 2012 15:33

Motorists are currently suffering from record fuel prices and soaring insurance costs, causing some motorists to give up driving altogether. So what better time for local councils to decide to put the boot in and impose a pay as you park tax for employees. Nottingham council has already done so and now Bristol is also considering such a scheme. So who is going to pay for this? Tim Kent Liberal Democrat councillor for Bristol stated, “I have said I don’t want businesses to pay a penny”.

He went onto say “I really believe it should be paid by those who benefit from having a free car parking space in the city centre.” But just a minute, where is the benefit? They are not going shopping, they are simply parking their cars so they can go to work. There is nowhere else to park because it’s all council controlled restricted parking.

It seems quite extraordinary that councils having imposed parking restrictions on all the public roads, now want to charge motorists for parking in private car parks. Imperial Tobacco plans to pass the charge onto its employees, although two unions are threating strike action. Clearly Imperial Tobacco has to pass on the charge, after all they only made about £3 billion profit in 2010; hardly enough to keep the wolf from the door.

Naturally Stephen Joseph, executive director of the Campaign for Public Transport backed the move. He said “The thing about a workplace parking levy is that the money raised does pay for real improvements”. Well it certainly isn’t being spent on repairing potholes. It is estimated that some employees will have to find another £20 per month to pay for the charge, whilst many are on pay freezes.

We understood the “war on the motorist" was going to stop once the current government got into power but Norman Baker, the local transport minister said, “It is up to local authorities to promote Workplace Parking Levy schemes if they feel that they are appropriate for improving transport and tackling congestion their areas,” Which roughly translated means, “No the war on the motorist is not going to stop, now we are in power”.  


 

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Should I buy an ex lease car for my son or daughter?

by A Gilmartin 10. February 2012 16:44

 

 

The answer is most definitely yes; this is the best way of keeping your children safe on the road. That is providing, and this is important, the car has come directly from the leasing company. This would include auctions where the contract hire company has entered the vehicle for sale. There are many auction houses where on certain days, every vehicle is a direct entry from a leasing company.

 So why is this the best way of keeping your children safe? Because cars that come from leasing companies are generally two to four years old and they are safe, because later vehicle have a lot more safety equipment. Furthermore you know they will have been looked after because they will be either within the manufacturer warranty period or just outside.

 Under these circumstances there is no reason that the car will not have had any faults rectified and also it is a requirement of the contract hire company that the vehicle is regularly serviced and must be returned to them in good condition, taking into account the year and mileage. You really would be very unlucky to find that one of these vehicles has a major mechanical fault.

If you do decide to attend an auction to buy your son or daughter's first car, don’t be put off by seeing that the ex-lease car is being sold “As seen” that is pretty standard practice for most leasing companies and it does not mean that there is anything wrong with the vehicle. If you do your homework and make sure you don’t get carried away with the bidding, you can pick up some good bargains buying a car in this way. The main thing is to set your maximum price and just stop bidding when you reach your limit.

At one time the recommendation was that new drivers buy an underpowered old banger on the basis that they wouldn’t be able to go too fast and if they smashed it up it wouldn’t matter too much. However a lot of these underpowered old bangers hit trees at 60mph and kill their teenage drivers and passangers.

 The institute of Advanced Motorists is now urging parents to help their children to buy the latest car they can, because of the advanced safety equipment and that there is less chance of their being something hidden in the car’s past. They also  say that there is evidence that if children are still paying for a car ie with a loan from the parents, they drive more carefully. So in summary try and help them to get the latest car they can and opt for one that has come directly from a contract hire company.


 

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Lease a Ford Mondeo at affordable rates

by A Gilmartin 3. February 2012 13:42

If a Ford Mondeo is the car you want to drive but the high price has deterred you from purchasing the car, then Ford Mondeo contract hire is probably what you should be considering; Ford Mondeo leasing is the most cost effective way of driving this vehicle.

Most of us in the UK like to drive our favourite car but purchasing a vehicle outright may not always be possible. Some motorists opt for a car loan but before making any significant financial decisions, it really makes sense to consider all the pros and cons.

As a general rule if you choose to purchase an immovable property such a house, you can expect its value to appreciate with time but the same does not hold true for cars, in fact quite the reverse. So, it begs the question, why pay for something that keeps losing its value with every passing day?

 With a car lease you can get to drive your favourite model for the best period of its life; the first three years, and then replace it with another brand new car. So if it is the Mondeo that you want to drive, you can lease a Ford Mondeo with monthly payments similar to a less-expensive car on a loan.

 There are so many benefits to leasing a Ford Mondeo, if you consider some of the premium features that you can enjoy with this vehicle: From every angle, it's stylish yet sporty. Once  inside you get a sense of the premium comfort level. Ford's latest diesel and petrol engines perform excellently, whilst Ford's PowerShift transmission and Auto-Start-Stop technologies help protect the environment. You can enjoy driving the new Ford Mondeo lease car for a 36 month term, from as low as £ 274.94 plus Vat per month.

Unlike a car loan, with Ford Mondeo leasing , the residual value (value of the used car at the end of the lease) lowers the leasing cost. Even the maintenance cost of the car can be covered in the total lease cost. You can drive the car of your choice for two to four years and using it when it is in its prime.

At the end of your Ford Mondeo lease, you can return the car to the contract hire company and take delivery of your new car. Cars such as the  Ford Mondeo are increasingly taken on a lease by businesses, this is because above all they need reliability.

It is always worth checking our special offers page, as we often have some very special deals on Ford Mondeo contract hire.

 

 

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Returning your lease car to the contract hire company.

by A Gilmartin 9. December 2011 11:01

 

 

The golden rule when returning a vehicle at the end of the car leasing term, is to be present at the handover, if you cannot be in attendance yourself then at least have a representative there on your behalf. It is important for the paperwork to be completed whilst you are there and that you are happy that the collection driver’s report reflects the condition of the vehicle.

Also the paperwork should state that the spare wheel – if the car has one – is present and the same applies to the vehicle’s service history and spare keys. Just handing the keys over to the collection driver and pointing him to where the car is in the company car park is very unsatisfactory. There have been cases where the vehicle has arrived at its destination damaged and the cost of repairs has been claimed from the contract hire client. On the basis that the vehicle was damaged when it was collected, with the client claiming it was damaged on route. On other occasions there have been issues with the spare wheel and the vehicle’s service history.

A leasing company will charge the client for any work that needs to be carried out to restore the vehicle to the correct condition for the car’s age and mileage. If there is any work that needs to be done it is much more satisfactory to get the work done yourself, before the vehicle is returned. Particularly in the case of scuffed alloys and minor paintwork.

Needless to say the vehicle needs to be returned with the service history complete and fully up to date, failure to do so can prove to be very expensive; not keeping the service history up to date can have a significant effect of a car’s value and even invalidate the warranty. This being the case the car leasing company will want to be compensated for the vehicle’s loss in value.

If bodywork repairs have been carried out and the contract hire company deems the work to be substandard, they will charge the client to have the work re-done.  As to whether they do actually get the work done, or just put the vehicle through the auctions as it is, is another matter.

When your new lease car is delivered, the same rules apply; check around the car to make sure it is not damaged and that everything is as it should be. Delivery drivers tend to be in a hurry but it is their job to run through the car with you, so that you understand where everything is and how it works; things like the fuel filler cap release can be almost impossible to find without going through the driver’s handbook, something you don’t really want to do with a queue of cars behind you in the filling station. If your new contract hire car is delivered after dark, when you sign the delivery paperwork, make a note that it was dark and you were not able to fully inspect the vehicle.

 

 

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Great BMW 7 Series leasing and Hyundai contract hire offers

by A Gilmartin 21. November 2011 07:19

These are two special offers that are too good to miss; firstly an offer to lease a BMW 7 Series 730d SE Automatic over two years for just £399 plus Vat per month. The payment profile is  6x23, which is six initial payments followed by 23 monthly payments of £399. This is based on 10,000 miles per annum, we are however happy to provide a quotation for a diiferent annual mileage.

 “The best luxury economy car around”, this was the verdict of What Car Magazine and it is a truly impressive car, which turns heads wherever it goes. The 7 Series is surprisingly economical; not so long ago you would have been lucky to achieve 25mpg from a luxury car, the 7 Series has a combined cycle 41.5mpg. 


 

The Hyundai i30 is another award winning car; What Car Magazine awarded the i30 “Best Family Car” in its price range. We are offering a Hyundai i30 1.4 Classic contract hire deal over two years at just £143.38 per month plus Vat; it has a payment profile known as 6x35. For those who are not familiar with car leasing, this means six initial payments followed by 35 monthly payments of £143.38, based on 10,000 miles per annum. 

The i30 has lots of room inside, particularly rear legroom and a great deal of standard equipment. This is a great family car and it has the all-important Euro NCAP five star safety rating.


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A warranty that could last a lifetime.

by A Gilmartin 21. October 2011 09:43

The Vauxhall Astra advertisements currently appearing on television show the car for what it is; a beautifully designed vehicle and a far cry from some of the previous Astra models. This leap forward in style and specification has changed the image of the car and therefore the demand for this model; which we see reflected in our ever increasing Vauxhall Astra contract hire sales.

It is interesting to note that the wording has changed in the Vauxhall advertisements; rather than referring to their models as having “A lifetime warranty” they now call it “A warranty that could last you a lifetime”. Vauxhall came in for a considerable amount of criticism, when they launched this new warranty, which has an upper limit of 100,000 miles and then described it as a lifetime warranty.

Describing it as a warranty that could last you a lifetime is a little better but not much, because it’s misleading; 100,000 miles is not going to last many people a lifetime; even at 10,000 miles per annum it is only going to last ten years and that is not the life expectancy of most Vauxhall Astra buyers, we hope.

On balance however this shouldn’t put anyone off the Astra, it is an excellent vehicle and after all when it comes to warranties, if you compare what Vauxhall are offering with Kia ’s seven year warranty it compares very favourably; not many motorists average more than 15,000 miles per annum and on that basis the Astra’s warranty would last over seven years. If you opt to lease a Vauxhall Astra over two to four years, rather than making an outright purchase, the warranty is not a factor and the cost is a very reasonable £236 plus Vat per month.

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Time to confess, or perhaps not? .

by A Gilmartin 16. September 2011 10:20

 

The motor insurer eCar is running a competition, what they call the eCar Truth Booth Competition;  asking motorists if they have any secrets. They are suggesting that those who have something to confess should upload a video of themselves confessing and “the most honest, hilarious or downright embarrassing” will win an IPAD 2.  eCar say “we don’t welcome cheats and this will convince more people that honesty is the best policy”, really?

Perhaps the police should try this; “confess to breaking and entering and you will win an IPAD2”. How will this work with eCar? Will they say “you have won an IPAD2 but now we know that you made that fraudulent claim against us, we will be holding onto it, plus you owe us another £5,000. The motive behind this cannot be to find out if there is anything motorists are up to that they are not aware of, because insurance companies know every trick in the book and they regularly catch motorists who make fraudulent claims.

It is worth however being aware that if you fail to provide full and correct information on your proposal form i.e. previous accidents and convictions, or indeed inform your insurer of any changes to your status – in the event of a serious accident where you are at fault – they will find out, because this is when insurance companies investigate matters thoroughly; as part of their investigation they will inevitably scrutinise your original insurance prposal form.

 An insurance company’s first duty is to their shareholder and paying out on claims they can repudiate, is not looking after their shareholders best interests. Motorists who have not declared previous accidents or convictions to their insurer, should consider doing so, otherwise they may not have cover. As to whether they should do that on video for the whole world to see, is quite another matter.


 

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Celebrities’ cars

by A Gilmartin 24. August 2011 14:37

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Kate Middleton’s Volkswagen Golf which she bought in 2001 was sold on eBay, it fetched an amazing $74,500, approximately £48,500, simply because the name Catherine Middleton was in the log book. A 2001 Golf with 62,000 on the clock would normally be worth just a few thousand pounds but with that name in the registration document, it made all the difference and there is no name more topical at the moment.

There are other well know celebrities cars being sold, such as Wayne Rooney’s Aston MartinVanquish, Roger Daltrey’s Mercedes C Class and even an unusual MercedesSSK replica, once owned by Sammy Davis Junior and Bill Bailey. All of which will be sold at a premium.

Vehicles with a famous name in the log book are becoming harder to find; as more motorists choose contract hire, rather than outright purchase. When well know celebrities lease a car, although in most respects it is the same as owning a car, the registration document remains in the name of the contract hire company.

Generally individuals opt for personal contract hire, for the same reason that many companies nowadays choose to lease their vehicles, the simplicity; it is the least time consuming and most inexpensive way of acquiring a new car.

A major attraction is also fully budgeted motoring costs but more than anything it's avoiding the hassle of buying, and then having to dispose of the car, when it is time to change it. The appeal for many is being able to order a new car on the phone and just hand back the previous car when the new car is delivered.

 

 

 

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