Why buy Gap Insurance for a contract hire lease?

Why buy Gap Insurance for a contract hire lease?

Contract Hire leases are one of the most popular ways for new vehicles to be acquired in the UK today. This has often been the case with business vehicles, but more and more Personal Contract Hire agreements are now taken, perhaps in preference to the likes of retails finance solutions such as hire purchase or personal contract purchase (PCP). Why is Contract Hire so attractive? Well there are a number of tax benefits to businesses, such as ‘off balance sheet’ accounting, and the ability to claim at least part of any VAT back on the lease. However, the overriding advantage is simply that contract hire leases are often at a lower monthly cost than other styles of finance. You see leasing companies will often use huge fleet discounts to procure the vehicles initially. This means that the lease agreement can allow for very low monthly costs, as the vehicle will have a smaller difference between the original discounted fleet price, and its potential residual value at the end of the lease. Manufacturers offer attractive deals to leasing companies who can place a large number of new vehicles to a range of clients. The main difference between a PCP or Hire Purchase agreement, and that of a Contract Hire lease is simply that you never have the option to own the vehicle in question with a contract hire agreement. The vehicle is usually registered to the leasing company, and you do not have any option to buy as part of the agreement. Some people do not like the idea of never owning the vehicle, however all vehicles are depreciating assets,...
Nissan CVT Problems

Nissan CVT Problems

Nissan leaning on JATCO to solve CVT problems.   Nissan decided to fit continuously variable transmissions (CVT) across it’s new models and this decision is proving to be a tough one. The Japanese auto-maker has been swamped with quality and customer satisfaction issues all relating to the CVTs that are provided by the supplier JATCO Ltd. We at Contract Hire Gap Insurance like to bring you the reader, the latest on what is happening in both the automotive and Gap Insurance world.   Nissan are already under a considerable amount of pressure as a whole host of manufacturers look to challenge the Japanese brand in the electric car market. Manufacturers such as Toyota and BMW have agreed a deal which will see the pair develop hybrid and electric cars in the future and may even involve the pair manufacturing an exclusive range of models.   The Nissan CVTs   Jatco’s innovations in CVT performance in friction reduction and operating efficiency have helped Nissan cars rise to the top or near the top in fuel economy in their segments. CVTs are the standard non-manual transmission for every car and crossover in the Nissan-brand line, except for the electric Leaf and low-volume 370Z and GT-R sports cars.   Because CVTs have no fixed gears, drivers do not experience the gear-by-gear stepping-up sensation of traditional automatic transmissions instead experiencing only a smooth and steady increase in engine revolutions. To an uninitiated driver, the transmission could sound like it is stuck in a single gear.   The Nissan CVT complaints.   The customer satisfaction issue mainly occurring is due to the customers’ unfamiliarity...

Blind people call for louder electric vehicles.

The European Blind Union (EBU) has called for legislation to be strengthened to protect vulnerable pedestrians from silent running vehicles at a time when car manufacturers are focusing on creating electric vehicles as part of the government’s plan to make electric vehicles the main source of transport.   The EBU’s silent vehicles case. The organization warns that electric and hybrid vehicles could pose a risk to blind, partially sighted and other vulnerable pedestrians who rely on their hearing when crossing the road. They want electric car manufacturers to enable that drivers can not switch off alert systems warning vulnerable pedestrians that silent vehicles are approaching. Rodolfo Cattani, Head of EU relations at the EBU said up to 30million Europeans could be threatened as more of the low-emission vehicles hit the streets. The risk to vulnerable people’s safety is highest at speeds under 25mph as at higher speeds tyre friction makes the vehicle audible. However, a 2011 study concluded that the quiet running of electric and hybrid vehicles would only pose a “very small” risk to visually impaired pedestrians and the threat is no higher than standard internal combustion engine (ICE) cars at the same speeds.   What will happen to the electric vehicles legislation? A draft EU regulation approved by lawmakers would require car-makers to build in an alert system in all silent cars built in the future. The device will be called the ‘Acoustic Vehicle Alerting System (AVAS) following a similar decree in the US. The EBU believes this to still be inefficient as though automatically switched on when the vehicle is started, the AVAS system can be...
The dangers of drink and driving

The dangers of drink and driving

Usually by the time that children turn into teenagers, they have learnt what the right thing to do is, especially when it comes to drink.  Though it appears that a secondary school in Massachusetts shows more interest in district policy than a student’s good intentions, after she tried to assist her friend in need.Though many people out there would not want their children attending a house party where there is copious amounts of alcohol in any circumstances, though it has to be said that what this young girl did, was commendable and not punishable. She drove in her car to the party scene to pick up her friend who was too drunk to drive. If she were not to do this in the fist place we believe that, there is a chance the girl who had been on a night full of drink, could of attempted to drive home herself possibly causing an accident in her vehicle, or even an insurance company write off. None compare to the damage though that she could of done to herself if this had of been the case. Drink driving suspected but later released without charge Erin Cox, who is a Andover High School senior, recently received a phone call from her friend who said that she was too drunk to be able to drive home from a house party she was at. Erin, being what many would think of as a good friend, drove in her car to the  house to pick her friend up, though she arrived there the same time as the police did. Erin was questioned by the police...

Lincoln MKC SUV.

Lincoln, a brand owned by the Ford Motor Company, has produced the MKC as a new offering for the small premium SUV segment which is the fastest growing part of the luxury market. The brand is hoping this model will be key to increasing Lincoln’s appeal to the younger audience. The MKC styling was previewed in the concept shown at the Detroit Motor Show last January as well as being introduced in New York as the second of four vehicles the Ford Motor Company is counting on to revive it’s luxury brand.   The MKC SUV details. Stand out design features include Lincoln’s signature ‘split wing’ grille and a wraparound tailgate similar to that fitted to the Audi Q7. Inside there is extensive use of leather and real wood trim with the audio system featuring THX surround sound and Lincoln’s version of Ford’s SYNC system. Two petrol EcoBoost engines are offered: a 240bhp 2.0-litre unit and a 2.3-litre version which makes 275bhp and 300lb ft of torque. Larger-capacity-engined models feature active grille shutters. The MKC is loosely based on the Ford Escape yet the design and parts are completely different to combat the fact that past Lincolns have been too much like their Ford ‘cousins’. The model being low and wide, with a sloping roof, optional panoramic sunroof and a prominent winged grille. The tailgate cuts into the sides of the vehicle, instead of the rear, allowing a long, unbroken band of tail-lights as a sharp crease undulates along the sides, giving the vehicle a constant sense of movement. The MKC will be built at a factory in Louisville,...