Contract Hire Specialist

How is that for a reciprocal question posed by Mike Rutheford for the Telegraph? It’s almost like asking wasn’t it great that 60% of our gold reserves were sold to the highest bidder?

Then again, whom are we talking about over here? Anyone with expertise in working in the real world? (another reciprocal question…)

With the UK going to the polls today do you think the answers to any of the above mentioned questions will change? Is that another reciprocal question…

The answer is of course, that nothing ever will change and as long as our docile population allows to have other people’s hands go into their pocket and remove the cash contained therein, things will more or less remain the same – that is, tax, tax and more tax.

Whilst you choose to live in this marvellous and beautiful country and there’s precious little that can be done about taxes, there is quite a bit that can be done about controlling expenses.

It is certainly easier to keep our proverbial heads in the sand, however this approach will only take you so far; it is far better to face the reality square on and if having a vehicle is of necessity for yourself and your business, leasing a car is an excellent option for controlling motor expenditures. No doubt, you will still pay the yearly road tax, maintenance, insurance, fuel – and be susceptible to the fluctuations of these.

By getting good advice however, it is possible to at least control the monthly outgoings by fixing most of the expenses at the outset – which is what a good vehicle leasing broker could and should do.

Whether you opt for a personal or business contract hire (and we will discuss those options in subsequent blogs), a lease will cap the expenses as it pertains to the rental and maintenance of the car and the road tax is usually included in the monthly rental – with the exception of some special deals (make sure to ask the question).

Remember – Governments come and Governments go but the Bull**** stays forever. Enjoy the ride.

First off, let me say a huge THANK YOU to all of you who have taken the time to share your feedback with me – you can’t imagine how much it means to me to have the blogging acknowledged.

Please also share with me what you would like to see posted here, what topics should be covered in the future, with regards to contract hire, leasing, motor insurance etc.

 End of Quarter 1 is just around the corner (!) so not a bad time to reflect on some big and small changes that have occurred since the start of the year with regards to financing and leasing a vehicle.

 There have been many, and most have been ignored by our media.

 The biggie was the VAT ‘reset’ to 17.5% at the start of 2010 from the previously 15% enjoyed by all consumers.

I don’t know about you, but I prefer to keep more of my hard earned dosh in my pocket. VAT increase has an immediate affect on everything. First and foremost – fuel costs go up. Our current economy (and for the foreseeable future despite Al Gore and honchos) is based on fossil fuels and any tinkering with VAT impacts fuel prices.

Fuel prices in turn have an impact on every single thing which forms part of our daily life, food, clothes, electricity, water – you name it. Technically food may not be vatable, but the transport of food certainly is. And who do you think gets saddled with the extra costs?

 Not surprisingly, the VAT increase also affected the price on cars; let me explain.

Every vehicle has a VAT element as part of the On The Road price. (OTR is an acronym we can leave aside for now and which will be covered at a subsequent blog.)

When VAT is tinkered with, it immediately changes the ‘bottom line’ price of the car. Even businesses who can claim back some – or all – of the VAT outgoings on their lease are also affected by this increase. The VAT that is reclaimable is only on the monthly lease but the car price increase will push up the monthly rentals.

If you think this VAT ‘reset’ is the last we’ve heard – you have got something else coming. Many experts believe that a further VAT increase is imminent. Never mind that we are already overtaxed and spend about 6 month of the year working to enable our elected representatives to spend to their hearts’ content, VAT rates will likely again be tinkered with.

Mind you, the recent “scrapage scheme” where older cars where traded in for new one’s gave HMRC a boost as it brought in more money in VAT then it ‘spent’ on the scheme – but that is besides the point.

While the rest of us spent the new year raising our wine glasses in hopes for a better future, some of spent it by raising the Vodka And Tonic (he,he,he…).