But, what exactly is car leasing? And, how does it work? And, it can be difficult to understand just how leasing works. So, we thought we would write an essential guide to car leasing, how it works in the United Kingdom and why it may be the best choice for you. Basically, you have your car for a set period of time. The length of the contracts can range from 1 to 5 years but are usually 2 to 3 years. You then make monthly payments for the duration of your agreement and when that time is up, you hand the car back.
Whether this is a good thing or a bad thing is entirely dependent on the person. Some people like the idea of being able to return their car and to not worry about things such as depreciation and disposal. Others, however, like the thought of owning their car and not having mileage restrictions more on mileage restrictions below. The other difference between leasing and buying is maintaining the condition of the vehicle. If you own the car you have more freedom to decide when it gets serviced, where you get the repairs done, etc.
However, if you lease, you are responsible for keeping the vehicle in good condition. This is because you are essentially renting the car for a period of time, therefore you have to keep your car up to industry standard. There are a variety of lease contracts that are available to you, and suit pretty much every need. So, as you can see, there are quite a few advantages to leasing a car. However, it is not for everyone. There are disadvantages as well and while these are entirely subjective, you should take them into consideration.
Find out more about these potential hidden costs here. Now, how do you actually go about leasing a car? Have a look at what sort of car you would like to lease. Now that you have a rough idea of what you want, decide if you are going to go through a vehicle broker or a dealership? Dealerships are often limited to one type of car, whereas brokers have access to a lot more makes and models.
You can download our Ultimate Vehicle Broker guide to find out everything there is to know about vehicle brokers. This step is vital as it will determine the rest of your leasing experience. For tips and advice on choosing a vehicle broker, read our article. Even though your vehicle broker or dealer will find the best deal they can for you, the decision is ultimately yours. At the end of the day, only you know what is best for you.
This means you will be subject to a credit check. The only exceptions are companies with extraordinarily high mileage, so taxi leasing is out of the question. If your business needs a fleet of vehicles, business car leasing can be very useful. I'd recommend going through the list of benefits above and seeing if anything jumps out at you as being a 'must-have' feature.
Business leaders and employees can access business lease cars through methods like a salary sacrifice car lease or by using a car allowance.
If you think these routes are for you but you're not sure, we've asked experts to help us calculate car allowance you're entitled to, as well as pinning company car vs car allowance options against each other.
If you need to cut business costs and you need to end your car lease early , you have options. If you realise very quickly that you don't need the lease, you've got car lease cancellation rights. You have 14 days after signing up to end the lease contract without any quibbles. After this, when you've received the car, you can enquire about car lease transfer to remove all responsibility from your business and give it to a new lessee. Or you can pay a fee to end the contract early, though this will make quite the dent in your business budget.
Thanks to our handy pal, the Internet, signing up for a business car lease is now easier than ever before. Before you hunt out car leasing special offers , see our post on how to get a business car lease , detailing all the documents you'll need. If you're a start-up, see our post on how to get a new business car lease.
If you're insanely organised and know the exact car and exact lease options that you want, you can contact individual brokers and get quotes.
Most other people will probably rely on the good, old-fashioned car leasing comparison website. With millions of deals updated daily, Lease Fetcher is revolutionising the way that we access lease cars.
For all business-specific deals, we've rounded up the best business car leasing deals on the market. Trying to wrap your head around the car leasing world?
Emily works hard to keep Lease Fetcher fresh with everything you need to know in the automotive sphere. We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for your purchase.
We will only introduce you to these lenders. See our PCP vs lease , lease vs lease purchase and hire purchase vs lease posts for a full comparison. The cost to lease a car depends on how much the car is estimated to depreciate over the course of your contract. It is split between an initial rental deposit and your monthly payments. You can opt for a no deposit car lease but this will make your monthly payments higher. The rate of depreciation depends on:. You can try to lower your car lease cost by entering a car lease negotiation or by picking the best time to lease a car when it is cheapest.
Before receiving your car, leasing companies ask you to take out fully comprehensive insurance for complete cover in case the lease car is written off or if the lease car is stolen. Do not stop making the payments entirely as you will harm your credit rating and you could receive late payment fees. The leasing company will contact you prior to your contract end to arrange your next contract if you wish to enter one.
What happens at the end of a lease is the lease company will send a rep to inspect the car. They will take the car away and you pay any charges. You can find lease deals by going directly to the broker or by using a car lease comparison site , like Lease Fetcher. To find the best lease deal, consider your budget and driving needs.
This will allow you to narrow down your choice of manufacturer, car body style, fuel type, trim, add-ons, annual mileage, and more. See our car leasing tips like the best time to lease a car for more info! We have gathered the most competitive personal car lease and business car lease deals from UK brokers to make your search easier. You can also check out car leasing special offers! Trying to wrap your head around the car leasing world? Emily works hard to keep Lease Fetcher fresh with everything you need to know in the automotive sphere.
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