There were many lease firms who had their finders crossed hoping the new “Money for scrap car” scheme would include the car lease industry as part of the £300m put aside to fund the scheme. Although proven to increase new car sales in Germany, there are many critics here in the UK, from used car dealers who now face selling vehicles at a higher price than many could buy new.
The car lease firms will also be worried that many individuals, who had planned to lease a new car, may now opt to buy new as finance payments could be substantially cheaper than a lease payment, providing they have a 10 year old car to trade in of course. There are many complaints from the public also, who suggest that those who drive around in 10 year old cars, are less likely to be into the new car market than those who renew every 3 years.
There is also confusion whether the £300m government share on funding will be enough, with Expedia claiming that 1.5m customers may now want to take advantage of the scheme. Yet there are others in the motor industry that explain that 50% of all new cars are either leased or company cars and that the market really is not that big for those remaining with a 10 year old car that has been owned for 12 months.
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The information has been impressive to kick start the new car sales sector by offering cash back should you scrap your car over the age of nine years whilst buying a new car. This scheme in Germany has seen a massive 40% rise in new car sales, with some concern from the used car market. There are strong hints that the chancellor is about to offer a similar scheme into the UK, offering huge incentives to take that old car off the road.
What isn’t clear though is how that will affect the car lease market. In better words can you also gain these benefits should you choose to lease a new car or is it only on direct purchase of these cars. If you able to benefit from this incentive, then it is time to go out buy a cheap banger, ready to claim your discount back. With some monthly terms as low as £150 a month, it could be possible to have you new car at 50% off.
If this incentive is not applied to leasing a vehicle then there is a strong possibility that many will more away from leasing and may buy direct affecting this market. Considering that the car lease market can contribute to 50% of all new car sales, here is a big business waiting to take a fall. The used car market is also likely to be hit, as it is possible that a new car could cost less than the dealer did for the same car which is 14 months old.
So the April budget of 2009 will be a time to keep your ears open to fully understand what may be on offer. It could be a time of rejoicing and it could be good for new car sales but it could also be bad news for those wishing to lease or the suppliers of vehicles.
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We all know that there are many car lease websites out there all promising superb dals on their next vehicle, whether it be new or used. Many claim to do things differently, well we believe that the process we will put in place will be a superb addition and help the average business owner or consumer find the ideal car lease deal they are looking for.
We will not be providing cars ourselves, but we will deliver many processes from recognised providers who obviously want your business. By filling in one form you will be able to get several car lease quotes from several suppliers in one go saving time and hopefully money.
If you are in the car lease business you may want to contact us soon when we get our communication up and we can talk about delivering you free leads whist the development of the brand is in place. We are SEO experts, so we expect to deliver traffic in a reasonable amount of time, so look out for the new comer.
With video presentations and quick quote options, we believe we will become the number one force in car lease deals.
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