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YOUNG AT HEART: Playing a waiting game
Date: 21 November 2008
Fun and games between the car makers and leasing firms.
The recommendation of the moment is that you'd be daft to enter a new contract hire agreement now. RVs are in freefall and the cost of money is high, so you'd be fixing your monthly rate at a premium, when holding on six months or so may see a better deal.
This is useful news for a fleet, but it's disastrous if you build new cars, and is possibly why so many lease firms preferred to remain unnamed when we contacted them.
However, the BVRLA seemed less concerned about upsetting the manufacturers. After the SMMT called for changes to the current and upcoming capital allowance systems to help stimulate fleet sales, the BVRLA, which represents the vehicle rental and leasing industry and whose members purchase nearly 45% of SMMT members' products each year, said: "We are disappointed the SMMT has called for these measures without discussing them with some of their largest end users.
"Present Government policy is aimed at incentivising people to buy cleaner, more fuel-efficient vehicles. Instead of asking the Government to abandon these tax plans, manufacturers need to start producing more of the vehicles that will help businesses benefit from them."
Interestingly, Andy Hartly, Lex's director of pricing, procurement and remarketing, added that eventually car makers will need to shift cars, and at that point prices could fall.
It could all come down to who blinks first.
