Consumers Guide to a Car Lease
We’ve been inundated by questions over the last few weeks of lockdown on what a car lease is and how it could work for you, whilst its not for everyone, we try and explain the basics.
How does Car Leasing Work?
Car leasing is where a consumer is provided with a car in exchange for a monthly payment. The car in question is then replaced generally every 2 to 3 years with a new car lease contract.
The main benefit of leasing a car is that you always drive a car that is covered by the manufacturers warranty and includes road fund licence for the duration. Also due to the vehicles age it very rarely needs any mechanical work.
Another huge benefit to car leasing is that you can usually lease a more luxurious car than you can probably afford to buy.
How to get the best deal on your car lease?
When looking for the best car lease deals, a good place to start is on the the price comparison websites. This gives you an idea of the offers that are around and what you’d be expecting to pay.
Be careful! Many of the car comparison websites show the deals based on a really small mileage and much higher initial rental, sometimes this does not meet your personal needs.
Whilst you have the option of shopping online for your next car lease and contacting providers and dealers direct, you’re not destined to find the best price.
We offer a service called Find a Car Lease, where we can tap into all of the funding providers as well as deals that aren’t visible to the public, its worth a shot!
What other factors to consider when choosing a car lease?
Is a car lease ideal for you?
Taking a car lease is ideal for those who want to fixed their monthly costs, especially if you take maintenance plans as well, as you should have no unexpected bills.
But when compared to a PCP, some vehicles can work out more expensive than taking a Personal Contract Purchase, as you do not gain any equity in a lease vehicle.
At the end of the lease, you give the car back. On a PCP you have the option to refinance the balloon, hand the car back or start again, using equity (where applicable.)
Commitment and issue?
2 to 3 years can seem a long time if you have chosen the wrong vehicle or things have changed such as business trends or even home life, like starting a family.
Coming out of a lease early can prove costly and inflexible. This is where a short term car lease can really come into its own.
Additional Charges at the end of a car lease?
One important factor that many people fail to remember, is that at the end of the car lease contract the vehicle is assessed for damage and mileage.
If the vehicle has damage outside of the return standards, then this will be chargeable. We always recommend going around your vehicle and being uber critical, so you know what to expect when and if you receive that final bill.
Excess mileage is another sore point, but if you take a vehicle on a car lease with 10k per annum, then its really important to keep an eye on your mileage on a regular basis, otherwise at the end you will get hit by an excess mileage charge.
We’re here to help!
If you’re not sure which way to decide when you need a care, then drop us a line. We can help with all aspects of purchasing or leasing of a car including car leases, hire purchase and personal contract hire.
Call the team on 01332 290173 or complete the online form.