The figures for July august saw another 27% drop in production of cars compared to the same time last year. The news reports that is still 2% better last month suggesting that the scrappage scheme is working, but many others have their doubts.
After all the high street saw rises is sakes during July and there was a huge increase in Mortgage acceptance, so many believe this sight 2% damage limitation figure is just more people are a bit more confident in the economy.
The figure relating to UK cars being manufactured however does not tell the whole picture as sales could be up much more if it is found that the consumer is choosing to buy cars built outside the UK, for example in Korea. We also have to take into account that there are airfields full of new cars up and down the UK, so at this time figures for manufacturing may have little reference to cars being sold, until the stock pile of cars fall in numbers.
It is also worth noting that 50% of new cars tend to be leased and as the scrappage scheme does include lease cars within its conditions you again have to wonder what impact the scrappage scheme is really having. As no official figures seem to be released with a yes it is working or no it is no, we will keep having to guess.
For some buying car is the only option, you hand over your money and you have full ownership of your chosen vehicle in return. However for others, especially business owners owning something that has terrible depreciation and using money to buy a car that can be used for better purposes that can create money, leasing a car is a great option.
As far as leasing is concerned, contract hire is probably the easiest option to understand. In short you pay a set monthly premium and as long as you drive within the mileage agreed, you should be able just to hand the car back at the end of the contract hire agreement term. You do not get the option to buy the car and the premiums are based on the initial price of the car and the resalable value at the end of the contract hire term.
Of course there are other things to consider, like maintenance and ensuring you never go over the agreed mileage you say you will do, or you could be charged excessively for this accident, but generally contract hire for cars is like leasing a house for a period of time.
Pay your money and hand it back. This can make it easy to calculate your monthly outgoings, for some businesses that can claim VAT back on some of the value and all of the VAT of any maintenance associated with the car. Your contract hire premium is also based on the difference between buying and selling so it is possible to have a better low depreciation car than a high depreciating vehicle at a cheaper price.