We are going through the tightest fought election campaign in living history and even with only a few days to go and what looks like a certain winner, the stats look too close to choose an outright winner and so a hung parliament looks a real possibility.
Uncertain times breeds uncertainty and if the business owners or car buyers are unsure what the next few years are going to bring, then a 3 year commitment in anything is less likely. This may affect the car lease business where contracts are more forthcoming with certainty. The availability of finance and and knowing that residual values will possibly fall, may or may not affect whether to buy or just hang on for the moment.
The recent increase in car manufacturing in the UK, suggests some optimism although the manufacturers still state they are not of the woods yet and if this continues residual values will drop as more used cars hit the market in a few years time, increasing monthly payments for lease and contract hire options.
If there is a lack of information here, well that is the point. No one seems certain what will happen over the next few years. Are we out of recession, can we cut costs now, or do we still need to support businesses? No one really knows, so whilst this uncertainty is in the air, brokers and car lease suppliers will just have to hold their breath and hope for the best.
