A NEW car loses value the second it is driven off the forecourt and by the end of its first year is worth 30 per cent less.

No wonder Abingdon-born business man Martin Wedge, who launched carcontracthire.com last month, is in favour of “usership not ownership”.

The online car leasing firm offers more than 100 models, ranging from Audis, Mazdas and BMWs to Minis and Fiat 500s.

So, instead of splashing out £25,000 on a Mazda 6 turbo, he suggests leasing one for £189 a month.

Mr Wedge pointed out: “Why would you want to buy a depreciating asset?

“You are better off getting a professional organisation to manage the loss.”

He explained: “It’s brand new, which takes away most, if not all, the risk of the car going wrong.”

A fee, usually equal to three monthly payments, is paid upfront followed by 24 or 36 monthly instalments, as part of a two- or three-year contract.

At the end of the deal, the customer does not own the car but has the option of taking out a new contract to lease another new car – ideal for those who do not want the hassle of high-mileage, older and less reliable cars.

In the past, pensions could not be taken into account when it came to applying for lease hire agreements but this has changed, opening the market to older people.

Mr Wedge said: “In the past, it would have been difficult to get finance underwritten to lease a vehicle to someone who did not have a salary coming in.

“But changes in the banking world mean consumers can’t be discriminated against purely on the grounds of age, even if they are over 70.”

He says it can provide wheels to many who would never be able to afford to buy, pointing out: “Even to buy a small car, you are talking £11,000 to £15,000.

“This way it’s hassle free and you don’t have to worry about trying to sell the car afterwards.”

He is not a newcomer to the market, having run national contract hire firm OVL Group, which supplies lease hire cars to companies, since 1989.

He added: “Although it’s a new business, it’s part of the OVL Group, so it’s not like we haven’t done this before.”

Through OVL, he has strong trading relationships with leasing firms, allowing carcontracthire.com to offer personal lease deals at virtually the same discounted rate offered to commercial fleets.

OVL delivers 1,000 cars and trucks a year to firms in London, the south east, Manchester and even the Shetland Isles and Mr Wedge hopes to supply up to 400 personal lease vehicles in the next 12 months. “In Britain, it’s always been about owning but not any more. People just want a good deal,” he said.