Below is an article I wrote for a group of accountants and advisors about the likely impact of the continuing diffuculties facing motor manufacturers, dealers and finance houses..............

Having conversations about cars with your customers, friends and colleagues about cars and vans?

.... "wait until later in the year for a deal".... it's the worst thing they could do........why?

Here's a very basic recap in economics - (it's been a long time since I did my degree in the subject so please bear with me!)

Firstly the finance companies are tightened their belts, they are no longer a limitless cash supply for buying new cars and vans. Lex have already pulled their PCP product to divert cash to business leases. Therefore the deals seen advertised can not always be done, it pays to speak to the experts.

Secondly the production lines have slowed meaning all those excess stocks being given away are dwindling away. In response to this the manufacturers are amazingly increasing their prices on new cars by as much as 5%, so far in 2009 this includes Ford, Vauxhall, VW and Audi.

On the flipside it's not all doom and gloom; residual values seem to be recovering allowing some rentals to decrease in relation to resale forecasts. The discounts available to funders and fleets are also increasing - making a mockery of the list price in some cases but to the benefit of the customers in terms of rentals.

So despite the world turmoil prices of buying and funding vehicles may even out towards over the summer back to 2008 levels - meaning DON'T WAIT - DO THE DEAL!
With more dealers expected to close this year, it seems that dealing with a professional, courteous and independent vehicle broker will appeal to more small businesses and individuals alike.

Whether they are buying or leasing customers will need to speak to experts at sourcing and funding their vehicles.