Car leasing can now give you more metal for your money

Today's record low interest rates mean car loans are cheaper and easier to secure.

If you bought a car a couple of years ago and the lease is coming to an end, you are in for a pleasant surprise.

Monthly payments for that Ford or Holden you rented four years ago could now lead you to something with a flashy badge on your nose.

Today's record low interest rates, combined with rising home prices, mean car loans are cheaper and easier to get.

Most people have significantly more equity in the family home than they did four years ago, meaning the bank manager is more likely to approve a larger loan. And lower interest rates mean you get more metal on monthly repayments.

A leading multi-franchise dealer says the economic climate is one of the main reasons for the surge in luxury car sales this year.

Of the Big Three, Audi was up 16%, BMW up 13% and Mercedes-Benz up 19%.

Total new car sales rose a modest 2.5%, but growth for most luxury brands is in the double digits. Of the Big Three, Audi was up 16%, BMW up 13% and Mercedes-Benz up 19%.

Things are even better uptown, with Ferrari, Porsche and Lamborghini posting impressive sales.

At the other end of the market, dealers report that the government's tax credits for purchases up to $20,000 haven't had much of an impact.

And some quietly admit that the usual fiscal-year-end discounts aren't as drastic as they were in previous years because demand has been strong enough without them.

So if you left it until the last week of June to snatch a deal from a desperate dealer, you might be out of luck. Unless, of course, you are renewing the lease.