Why Is It So Hard To Source Contract Hire Deals When The Demand Is So High?

By Author: Lee Tucker
Total Articles: 5
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Personal contract hire and leasing should be a growing market.

An industry that was once viewed as exclusive to business users has grown rapidly in the personal contract hire arena. However with this the amount of suppliers has contracted.

Private individuals are turning to contract hire as it offers easy motoring. Set monthly payments, road fund licence being included, maintenance options, no worries about depreciation and simple disposal are all alluring factors. But it is so hard for the average customer to find a decent deal or to even be able to compare suppliers.

In many cases there is only one option available so the customer gets that funder, their rates and their terms.

Why has this happened? Surely this is attractive lending. First, there is a saleable asset, rates can be set to reflect the desired return and then the customers can be filtered through a score card to alleviate risk. Yet funders continue to close doors or limit distribution.

Three years ago there were twice as many active lenders as there is today which tells its own story.

It is easier to obtain a credit card ...
... that offers no security and a credit limit far greater than that of a simple contract hire deal for say, a Vauxhall Corsa Leasing. It makes no sense.

Suggestions are that a private individual will take better care of their vehicle than a business employee with a company car. A private individual is held accountable for outstanding credit whereas a limited company can fold without directors being pursued. These are further reasons for existing and new entrants to come into personal contract hire.

In the meantime if you are a private individual (or business for that matter) looking for lease vehicles make sure you shop around and don't take the first deal available. Options are limited but there is some choice - find a reputable broker that is NACFB registered and has routes to multiple funders to get you the most choices.

Lee Tucker is a Sales Director of The Leden Group. Whether you are looking for contract hire and leasing, van leasing offers, contract hire, Ford leasing or private car leasing, Leden Group will have a solution to meet your needs.