We have to face certain facts about the financial world that we live in today, there is a credit crunch and it is very, very real.

We have seen clients declined for finance who 6 months ago would have been approved without any problems at all. Are they higher risk now compared to 6 months ago? Whilst some could be the vast majority are not high credit risks. The reason that they are being declined in most cases is quite simple. The finance houses have all but ceased lending monies to each other and thus there is a serious shortage of available cash to the funders to lend, the obvious step for them is to be very careful who they do actually lend to. We call this "cherry picking" of customers.

You will be asking yourself if their is any point in even looking for Van Leasing, well don't give up hope just yet as there are ways around the credit crunch.

We can offer Car Leasing to all and we have tailor made solutions to help clients have the finance they require put in place. Yes they can still choose what car or van they wish to lease, however the monthly rentals will be slightly higher than those of the prime finance houses.

Vehicle Funding is an ever changing business, rates and rentals can change daily. What we have noticed is that the decline ratios for vehicle finance have done a complete about turn compared to 6 months ago. Before the current credit crisis acceptance ratios were running at an average of 78% and now we are seeing declines with a 72% failure rate. Obviously this is not down to the population all of a sudden having adverse credit issues.

It is not the end of the world for leasing companies though. The funders are trying to claw back the huge losses they made due to not only the sub prime mortgage crash in the USA but from the poor risk assessments they have carried out when lending monies. The market will stabilise again after many bankers heads have rolled.