We can see great deals out there in the contract hire market with residual values pushing down monthly payments, but even when a great deal is found there still seems to be a stumbling block for some, that is getting the deal underwrtitten. Finance companies have removed some of the barries to finance in recent months but we are stil finding a high decline rate. One contract hire broker suggested that only 50% of business actually gets underwritten, meaning twice as much work for the same return. Clearly the credit crunch is affecting some businesses in other ways, even though there is a healthy demand to lease these cars and for some makes the scrappage scheme has not benefited them as much as some korean cheaper made cars have.
It is a shame it is not possible to get the finance first then look for a contract hire deal afetrwards a bit like how we often buy a car with a bank loa. First get the loan then go out with cash to buy the car. The result is sometimes contract hire comapnies make a financial decision on clients before deciding how much support to give with their purchase if they feel the deal will be scuppered with the underwriting at the end.