If you are in the market for a new car, then there are various ways to finance your vehicle. More and more people are using a car lease to finance a new car and it really does make sense.
So what does it mean to lease a car?
A car lease involves signing up for a financial contract over a fixed term where you will pay an agreed monthly payment in exchange for use of a vehicle.
Depending on what sort of contract that you’d like, there are a number of leasing options available and car finance offers that are available to you.
During the car leasing contract, on both long-term and short term car lease solutions, the finance company will always be the legal owners of the vehicle.
Once the car lease has come to an end, you hand the car back to the leasing company and you start again with another contract hire agreement. You can of course just hand the car back and walk away.
Depending on the contract, you may be able to purchase the vehicle although this usually means that you may have to buy via a third party due to tax benefits. You can then of course finance this car purchase with a traditional Hire Purchase, Personal Contract Purchase (PCP) or even a Bank Loan.
What do I need to lease a car?
To lease a car in the UK, you will need a full UK driving licence registered to your address and you will need to pass a credit check. Depending on the finance company will depend on their credit status criteria. You can use Checkmyfile.com using the link which includes a free 30 days trial.
For those who don’t meet the standard criteria for a car lease, you will need to look for a provider that offers Non-Status Car Leasing.
At Leasing Quote, you can complete a quick form that takes no longer than 4 minutes and our team can put you in touch with the right people. Let us do your car lease shopping for you.
Advantages of Car Leasing
Every person is different and not everyone will be suited to a traditional car lease, on the flip side, not vehicle is suitable for a car lease as the payment is based on residual values.
Yet, more and more people are opting to take a new car out on an affordable car lease deal. As obtaining a brand new car on a car lease, really can make sense.
If you look at the argument of Leasing Vs. Buying, the monthly payments of a car lease deal makes it more affordable when compared to buying the vehicle outright and having to put down a lump sum as the deposit.
Here are some quick advantages of car leasing:
- You can drive a brand new car with minimum hassle and organising.
- Lower upfront payments and reasonable monthly payments, making a more expensive car more affordable.
- The car is covered by the manufacturers warranty for a set amount of time, it’s worth tying in the contract length with the warranty cover.
- Optional maintenance can work out beneficial, especially if you are doing higher than average annual mileage
- Road Fund Licence is covered for the duration of the contract
- You can change your car every 2/3 years with little or no hassle.
- No MOT’s, so long as your contract doesn’t exceed 3 years.
- Fixed monthly payments with the only changes being if there is a VAT rate change.
- At the end of the contract, just start again or walk away!
What are the disadvantages of a car lease?
Of course, there will always be disadvantages to having a car lease and we like to be honest about all aspects. As we have already pointed out a car lease isn’t for everyone and not every vehicle suits to being on a car lease.
Here are a few disadvantages to a car lease?
- You will never own the vehicle during the car lease, the legal owner will always be the finance/leasing company.
- If you go over the contracted mileage, you will be charged an excess mileage rate – always read the small print.
- It is difficult to “Early Terminate” a car lease and can result in up to 100% of the remaining rentals payable.
- Return conditions can be controversial and the car will need to be returned to the standard as set out, usually by the BVRLA’s fair, wear and tear guide.
What other ways are there to finance a new car?
There are a number of ways to finance a brand new car, here are a few of the other options with clickable links:
- Personal Contract Purchase (PCP)
- Hire Purchase (HP)
- Personal Contract Hire (PCH)
Get the best quote for your next car lease deal
Our goal is to help you find the next car lease deal, we offer a simple online quote request tool that takes no longer than 4 minutes to complete.
Once received our team will put you in touch with 1 company from our panel of leasing brokers, this is dependent on your area and vehicle of choice.
They aren’t allowed to spam you and every broker has been vetted by us to ensure you get the best possible service when looking for a new car lease.