Car leasing (also known as 'contract hire') is an increasingly popular method of car finance across the UK. So how does it work?

The concept behind car leasing is straightforward - you pay a monthly figure over a two-four year period but you never actually own the car. At the end of the term you simply hand the car back or alternatively take out a new lease, potentially on a new vehicle.

Car leasing allows you to change your vehicle regularly and consequently avoid the costs of running an older less reliable car.  This is where cheap car leasing becomes a cost effective option – on most occasions working out cheaper than a personal car loan!

Of course there are lots more good reasons to lease your car, and here they are!

* No large payment of cash at the start of the leasing period.

* Monthly repayments are lower than purchase options making this a good way of driving the car of your choice (you can finally get that sports car you always wanted!).

* No disposal costs or depreciation risk. Just think how much hassle it was selling your last car.

* Road tax is paid for the duration of the lease.

* Servicing can be included as part of the cost and therefore becomes part of your monthly budget, much easier to digest!!!!

* Gives you the option to change your car at the end of the leasing period rather than being stuck with a car that you might consider out-dated, or that has been worn down through use.

* Simplicity - When the contract period ends you simply settle the agreement and walk away, we even collect the vehicle for FREE.

* If you’re leasing a vehicle for business use you can reclaim part or all of the VAT attracted to monthly rental.

So, as you can see leasing has a lot going for it in comparison to more ‘traditional’ financing methods.  Remember  though if it sounds to good to be true it probably is!!  Here are some things to be on the lookout for when obtaining leasing quotes:

* Initial payment - The initial figure will usually be equal to three monthly payments but can often be less. This is the only money you are required to pay 'up front'.

* Monthly repayments - These will be cheaper than a loan purchase because they are based on different factors.

* Average mileage - You will have to inform the leasing company of your expected annual mileage. The higher the mileage, the higher the payment due to wear and tear on the vehicle.

* Tax - Does your package include tax? Some companies will include it for the term of your agreement but others might not. We include tax with ours so don’t worry!

* Servicing - Some car leasing companies include this in their price. All our prices exclude servicing but you can request us to include it in your quotation request.

Right then!  So now you know why car leasing is a good idea and what to be on the lookout for when shopping around.  Talking of which have you looked at our great offers? (Sorry, the marketing guys made us put that shameless plug in!).

Should you need any more information clarification on the information included in this guide please contact us and we’ll be happy to answer any questions!


the wheels2lease team