97%

of our customers give us excellent feedback

Vantage Blog

Providing you with up to date Car Leasing News
The Great Diesel Debate - Avoid Huge Potential Losses on You Next Car.
Jul 31, 2017
The Great Diesel Debate - Avoid Huge Potential Losses on You Next Car.

Following the news that Munich will ban diesel engines and join some of Europe’s biggest cities in an ongoing attempt to combat air pollution, many consumers seeking a new diesel powered vehicle are wrestling with the uncertainty about what this might mean for their purchase down the line.

With Paris, Mexico City, Madrid and Athens all confirming that they will implement the ban to improve air quality by 2025, concerns for owners purchasing new vehicles with diesel engines have been raised, as they question what their investment might yield as we venture closer to the 2025 deadline.

Whilst this uncertainty is expected to make a dent on the retail market, the leasing market is expected to prosper, now that the consumer’s desire for ownership has never been lower.

Where opting for a lease was once took the hassle out of ownership and reselling, it now represents an added sense of security. By opting for a leasing, consumers no longer feel threatened at the potential for huge financial losses, given that this financial product guarantees the vehicle’s worth at the end of its lifecycle.

In effect, leasing is a long-term rental, designed to take the hassle out of car ownership.  Your monthly fee is calculated by two main factors – what the car is listed at new and what the car will be worth at the end of the agreed term.  Additional factors effect this depreciation too.  These include number of years that you anticipate leasing the vehicle for and the projected mileage that expect to put on the vehicle.  This sum is then divided over the number of months that the agreement is taken.  The monthly fees can often look seemingly too good to be true, given that you are only paying for the depreciation of the vehicle and not building in any cost of ownership, like with a PCP agreement.  This also means that you are not subjected to any interest charges either.  Throughout the duration of the agreed term, the rental cannot and will not change, should this policy be accelerated in the UK.

While the likelihood of an accelerated plan is small, the severity of the issue at hand needs addressing. Diesel engines contribute to air pollution by two key ways.  Physical matter, categorised as particular matter or PM, can penetrate the lungs in large doses, which when mixed with Nitrogen Oxides can contribute to cardiovascular illness.

Pressure mounting from environmental groups and health organisations have provided evidence to the world’s leading governments that detrimental health effects are conclusive, prompting them to address the matter urgently.

The Great Diesel Debate - Avoid Huge Potential Losses on You Next Car.

Should it be the case that the environmental implications are more important to you than the financial ones, the increasingly competitive electric car market is developing into a recognised alternative.  With the support for electric vehicles increasing, the industry continues to make huge strides in performance and practicality - the two main reasons that have previously held them back. Volvo in particular, really seems to be taking the market by the scruff of the neck, pledging that all their vehicles will be electric/hybrid by 2019.  Of course, if you are looking for electric car now there are some readily available on the market.  The Volkswagen GTE one in particular that we would recommend, especially if you are looking for exceptional value for money.  If you are looking for something a little more prestige, we also have some great rates on the Tesla, who really set the bar on electric vehicle performance.

The Great Diesel Debate - Avoid Huge Potential Losses on You Next Car.

If you do have any concerns about the pending diesel ban and what it means for you and your vehicle, please feel free to give us a call on 0161 434 4321.

Related Articles
The Range Rover to be Overhauled
The Range Rover to be Overhauled

The rumour mill has been churning and word has it... there is a new Range Rover on the way. The earliest estimate is as early as the end of 2017...

Just what is the new Range Rover Velar?
Just what is the new Range Rover Velar?

It’s been almost 50 years since Range Rover expanded its established model line. So, when they launched the new Velar, the world wanted to see what this hugely revered brand...

Your New Vacuum Powered Car
Your New Vacuum Powered Car

Remember the days when you were young and impulsive, sat at the traffic lights, staring at the car in the lane next to you, urging the lights to turn green...

Disclaimer: Different terms, mileages and contracts are available upon request. All contracts are subject to status and availability, guarantees may be required. We can introduce you to a limited number of lenders to assist with your lease and may receive a payment or other benefit from the finance provider if you decide to enter into an agreement with them. The images used on this website are for illustration purposes only. (c) Vantage Leasing Solutions Ltd. All Rights Reserved
Calculating your results
Looking For Some Help? We're Online Message us