Limecard Leasing have been advising our customers for some time against using vehicle purchase products to finance their next vehicles.
This includes Personal Contract Purchase, Lease Purchase, Finance Lease and Contract Purchase.
As from September 08 we will only be offering such products on a limited basis and by request only before we totally phase them out. This is due to the continuing depreciation in the value of used cars. CAP, the market leader in monitoring used car prices has reported a further 15% fall in the average of used car prices since May this year.
This has left customers who have purchase products in negative equity. Usually this is highlighted at the end of the contract, with the balloon price (so called guaranteed future value) substantially more than the market value of the vehicle. Limecard Leasing therefore will be recommending only two products. Contract Hire for our business customers, and Personal Contract Hire for our personal customers.
Both products offer the benefits of fixed cost motoring with no liability of disposing of the vehicle at the end of the contract. |
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