Study Reveals How Car Finance is Helping LA Secretaries to Drive BMWs, say FinanceAcar
London, UK (PRWEB) January 20, 2011
Despite the fact that US cars are approximately 35% more expensive than UK cars, a study carried out by the US National Automobile Dealers Association (NADA) has revealed that on average, American secretaries are much more likely to drive a BMW than their UK counterparts doing the same job but who typically drive a Ford Focus or equivalent.
According to research by the NADA which car finance experts FinanceAcar concur with, the average cost of a new car in the US at the beginning of 2010 was $ 28,400, or £18,239. Comparatively, in the UK the cost of a new car including VAT was 35% cheaper at £12,000 when total new car sales are divided by the c. 2 million units sold as reported by the Society of Motor Manufacturers and Traders (SMMT).
Despite the average US car costing 35% more than a UK car, US secretaries are more likely to drive more expensive cars. If we look at the salaries, it provides little insight. The average salary for a secretary in the US works out at £20,894 while Mysalary.co.uk states that in the UK the wage for the same job is £18,010 – a difference of just 16%.
The answer lies in how each finances their car.. A large percentage of cars driven in the US are funded by car leasing, whereas in the UK hire purchase is more popular but often requires a much higher monthly payment. This means a UK secretary using hire purchase would have to pay as much as £550 a month to drive the same £20,000 BMW 1 Series that a US equivalent would pay only £282 each month by using car leasing.
However, car leasing is very quickly becoming the most popular finance product for UK dealers with the first half of 2010 seeing more than 50% of buyers opting for it. Car finance experts, http://www.financeacar.co.uk/ agree that slightly better salaries do not justify the marked difference. Simon Norman said: “Based on the facts, upmarket car brands are more affordable in the UK than the US. However, our American cousins are able to be more adventurous in their choice of car and effective car finance is responsible for this. Many of them lease a car and enjoy the benefits of as much as 50% less in finance costs per month than those that choose to borrow the money to buy the car that they want”.
The most popular car leasing product in the UK is Personal Contract Purchase (PCP). It has become the finance plan of choice for UK drivers because of its flexibility and advantages. Drivers can save more plus choose a lease contract over a typical period of between two and four years meaning newer vehicles are more available. FinanceAcar points out that when you lease cars, provided a driver looks after the vehicle and keeps within the agreed mileage limits and thereby avoids any excess wear and tear charges, PCP also protects people from depreciation which is borne by the finance company. Finally, when it comes time to change your car, there is no need to negotiate or sell your existing car, you either elect to buy it for a pre-agreed price or hand the car back and get a new one.
About FinanceAcar.co.uk:
FinanceAcar (http://www.financeacar.co.uk) is a UK car finance specialist. It is the world’s first car finance marketplace powered by the world’s first car finance comparison engine that compares all car finance products for new cars (car leasing, hire purchase and car loans) in one place making it comprehensive in car finance compared to other comparison engines that only compare car loans. The FinanceAcar website compares finance from top UK lenders for more than 6,000 vehicles and offers more than 1,000,000 different prices. The site allows car shoppers to choose their car by make or budget and within seconds it presents the best finance product and best UK monthly price for that car based on the monthly cost of ownership. Once the user obtains the best monthly price, they can get a full personalised quote, obtain a credit check, apply for finance and have their chosen car delivered to their door.
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