Thanks, that all make sense. We will keep shopping around...

The answer to your question is possibly if you are looking at contract hire leasing. The two major things affecting leasing companies at the moment are funding (can they get it and how much do they pay for it) and residual value forecasts (i.e. how much they think they will sell their vehicles for). These two cost drivers are pushing up contract hire lease prices. However the manufacturers need to sell metal and there are big discounts around which will help reduce the rentals. Basically you have to shop around to find the best deal.

With the current financial situation I thought lease companies would be reducing prices to attract customers. This doesn't appear to be the case. One company told me prices would be going up rather than down but I suspect he was trying to persuade me to sign the dotted line! I know there are deals to be had if buying a car and I wonder if it might be worth waiting to see if a deal can be had in the lease market too? What do you think?