We could all be forgiven for daydreaming about sunny days and freedom to move around, as opposed to considering the snowy, icy world outside our windows and the restrictions we are all currently experiencing in the UK.
If you are in that camp, then how exactly you plan to travel may be one to think about now, rather than later. Will you use trains, buses and aeroplanes, or more likely to use your car for that UK driving holiday you never thought you’d get round to having. The joys of the British summer await...
In our world, many clients have seen their lease cars being returned as they have limited need for them, or have extended their current contract, but are now into the age where their car is out of warranty and need to plan ahead for their next car.
Therefore, should everyone wait until the lockdowns ease and then start to consider what’s next?
Below, we have split the answers in to 3 different scenarios you may find yourself in, and considered the question in relation to each one.
Our team take the guesswork out of this process, by conducting an in-depth Fact Find, pairing you with an expert, and analysing your individual needs and wants before recommending no more than 2 or 3 options for you to consider.
Scenario 1 – “I’m thinking of going electric with my next car…”
If you, like a huge number of people, are considering when will be the right time to make the inevitable shift to electric, there are a huge number of things to consider. There is a vastly increased number of electric vehicle (EV) models on the market in 2021.
You also have a dizzying array of things to consider, that you’ve never thought of before. How will your charging process look like, and indeed, is your current home electricity supply (supposing you aren’t in a 3rd floor flat) fit for purpose to supply the power you need for the move to EVs? What is the range you need to comfortably manage fitting electric vehicles in to your lifestyle? What will that lifestyle and working routine even look like in 2021 and beyond?
All of these are very much part of our process when we consider the switch to electric cars for clients, and it is crucial you take a considered and expert approach to matters, to avoid buyers remorse and being stuck with the wrong solution for the next 3 to 4 years.
As a final thought, the lead time on electric vehicles is anything but predictable, with Tesla recently cancelling all Model S and Model X deliveries until 2022, and Ford’s Mach E model running 6 months later than planned and counting.
Therefore, the switch to electric cars, or the consideration of that switch, gets an urgency rating of ‘1’ from the P+B team. Get in touch now, even if you’re thinking of getting a new car in time for Christmas!
Scenario 2 – “I’m out of contract, under mileage on my PCP contract or currently on an extension from my leasing or finance company…”
To take these points in order, there are a number of clients who have returned their vehicle and saved the money on the finance costs, with it proving an expensive driveway ornament they didn’t need during the current restrictions.
As the world returns to some form of normality and everything from the work commute, to dropping kids off at different activities returns to our daily routines, we are predicting a surge in demand for families not just wanting, but needing to return to having 2 cars in the family.
Let’s say you are under mileage on your PCP contract. Rather than continuing to pay a monthly cost for a car you may not be using, it is worth reviewing with our Client Services team what the options may be to sell the car, settle off the finance, and perhaps even pocket some equity.
You can then review your new car needs, and perhaps place an order for a new car, in time for when restrictions ease. Bear in mind, lead times on some cars are currently running at 4-6 months, so again, it is worth putting plans in place before the restrictions ease and demand jumps.
With extensions having become far more popular, you may be one of the many people who saw no need to commit to a new car when the current contract ran out. It is a great, flexible solution for many of our clients, but it is worth bearing in mind that if you are paying something similar to what you paid for the first 3 years of a contract, you may now be effectively overpaying for a car now out of warranty.
All these scenarios get an urgency rating of 2 from the team at P+B. Whilst you don’t need to panic, the days of large amount of stock vehicles are well and truly gone, and may never return, so often the best deals we can secure are on factory orders, meaning longer lead times, particularly in this post-Brexit, social distanced, and lockdown world we live in.
If cars are ordered and you need to delay delivery this is far easier, than finding a car last minute, that fits both your pricing and other needs.
Scenario 3 – “I like to play the market, and will wait and see what I can get…”
It may be your needs are pretty relaxed, or you aren’t to worried about what car you have as long as its functional. Things like colour and brand aren’t important to you, and ultimately a car is a functional thing, and we’ll see what comes up.
It may also be your job is insecure, or your contract is coming up for renewal in the summer if you are one of our many professional sports clients. If so, it is obviously not the right time to be looking at new car finance.
This one gets an ‘Urgency rating’ of 3. Wait your time, see how the world changes in the next few months, and be ready to make a quick decision when it comes to it.
If, like us, you can’t wait until the summer, and have hopes of some form of normality returning to our lives in July, then now is the time to consider what comes next in the form of your next car.
There is much to consider, and a very different world of car supply you may be returning to, since the last time you looked at buying or leasing a car.
Supply chains are disrupted, technology has changed fundamentally, and our personal needs and wants from our cars and our lives may well have changed apace.
Now may well be a sensible time to review these priorities with an expert and start putting plans in place to allow you to make the most of the second half of 2021, and whatever that may bring.