| According to the AA, the average cost of running a | | | | and write a large cheque. Ling's argument is why tie |
| small family car over 10,000 miles per year was | | | | up large amounts of your capital or borrowings in a |
| £5,611, up from £5,534 in 2006. | | | | car? "I only ask for three-months rentals as an initial |
| Depreciation is the main cost issue to consider, | | | | payment, followed by a direct debit payment every |
| accounting for around half the annual running costs. | | | | month. For a nice new car costing around £300 |
| Fixing your annual costs by renting a car for up to | | | | a month, such as a SAAB 9-5, or a Kia Sorento 4x4, |
| two or three years is becoming more and more | | | | or an Alfa GT or the latest Honda CRV, that means |
| popular, according to Ling Valentine (34), the | | | | you only have £900 invested, and you are |
| extrovert Chinese immigrant owner of | | | | paying the rest month-by-month as you use the car. |
| This method of financing a brand new car, | | | | At the end of the agreement, the car is simply |
| (commonly referred to by the catch-all phrase | | | | returned to the finance company, you can't keep it. |
| "leasing") avoids increasing interest rates and APRs, | | | | You have just paid for the use of the car. It is |
| by fixing the monthly rental of a new car in a simple, | | | | impossible to fall into negative equity, and there is no |
| clear figure. This monthly payment can then be | | | | lump sum to pay at the end." |
| compared on a like-for-like basis across a wide range | | | | "I would suggest you put your spare cash into your |
| of new cars, something that is almost impossible with | | | | house or your savings, not into a big deposit on a |
| the many different "offers" surrounding traditional | | | | new car, which is a depreciating asset", says Ling. |
| finance. | | | | The necessary oil and filter servicing is cheap, Ling |
| "The monthly cost depends on several factors", says | | | | insists, as the cars are brand new and never fall due |
| Ling, from her Gateshead 'World Headquarters'. "First | | | | for an MOT and are unlikely to need major items like |
| I take the discounted price of the new cars I get | | | | brakes and tyres. She says road tax is fully included |
| from ordering in bulk, often from dealers who need | | | | for the term; "I deliver these new cars to your door, |
| to shift volume to hit targets. Then, I check around a | | | | all you have to do is insure them, service them and |
| dozen different contract-hire finance providers, who | | | | put fuel in them". |
| will each value the residual value differently, guessing | | | | Breakdowns, which are unlikely on new cars, are fully |
| what the car will be worth to them at the end of | | | | covered by the manufacturers' warranty. Some AA |
| the lease term. Finally, I package this together, | | | | or RAC type cover is included for at least the first |
| making sure my own overheads are dramatically less | | | | year. A big benefit is safety; …new cars have |
| than those of other providers, including the franchised | | | | the highest safety ratings and the latest safety |
| car dealers and car companies themselves. I do not | | | | equipment built in, an important consideration for |
| have dozens of expensive glass-palace showrooms | | | | families. |
| to run." | | | | Talking about traditional new car ownership, the AA |
| The result is that LINGsCARS provides, at the touch | | | | says: "As most owners come to pay their motoring |
| of a button on a web-browser, a price list of over | | | | bills, each is more expensive than last year's - |
| 400 different brand-new makes and models of cars, | | | | undermining claims that cars are getting cheaper to |
| all with an easily comparable monthly rental figure. | | | | run." |
| Ling even does something which is unheard of in the | | | | Ling insists she can change that; "As long as you are |
| new car trade, and lists every car in price order, | | | | credit-worthy and you look after the car like it is |
| allowing visitors to her website the ability to compare | | | | your own, you can release the equity in your current |
| cars from a £111 a month Chevrolet Matiz to a | | | | car and get into the cycle of changing your car for a |
| £735 a month Range Rover. No car dealer in the | | | | brand-new one. You can do this very cheaply, every |
| UK allows that "street-price" comparison, across such | | | | two or three years", Ling says. |
| a wide range. She lists prices based on annual | | | | It is no wonder that in 2007, LINGsCARS rented |
| mileages of 10, 15 and 20,000 miles, suiting most | | | | over £28m of new cars, and that Ling has been |
| peoples' use; "You are rewarded for driving less, a | | | | awarded "Best non-franchise motor industry website |
| very Green way of doing things", she claims. | | | | of the year*". In this Beijing Olympic year, this is one |
| New car dealerships often require you to put down a | | | | Chinese who is already winning medals - in the UK! |
| large deposit and then take out a finance deal on a | | | | * Automotive Management Awards, Feb 2007. |
| brand new car, or the alternative is to take a loan | | | | |