Everybody seems to be talking about car leasing right now. I’m sure at least three people have told you to lease your next car! In fact, leasing a new car - or van - is more popular than ever, Auto Choices Limited has been involved in car leasing since 2002 and are here to help you. But how does leasing a car work for business and personal drivers?
Start of the contract
Initial Rental
At the start of the contract you pay an initial rental, this can be a set amount or multiples of the monthly rental.
This is normally 3x, 6x, 9x or 12x your monthly rental cost, for example – if the monthly payment is £100 and the initial rental is 3x... it would be £300!
This is usually displayed as 6+23 (6x monthly rental cost as your initial payment followed by 23 monthly payments).
Contract Term
Next, you set the contract term. Basically, this is the period of time you want to take the vehicle over.
This is normally taken over 24, 36 or 48 months (be mindful that of the warranty period given by the car manufacturer – speak to our office for advice on this).
Annual Mileage
Lastly, you will need to agree with the finance company what annual mileage the vehicle is expected to do. In most cases, this can be amended during the contract if your circumstances change.
Middle of the contract
During the term of the contract, it’s relatively plain sailing. If the vehicle needs to be serviced, you must get this done as per the manufacturer's guidelines, otherwise you risk paying a penalty charge when the vehicle is returned. The simple way to put it is: treat the vehicle like it’s your own. If it needs a service – get it serviced. If the tyre needs replacing – replace the tyre. You get the picture.
End of the contract
This is the easy part. Simply hand the vehicle back at the end of the lease agreement! That's all you need to do.
On a serious note, all of the major finance companies adhere to the British Vehicle Rental and Leasing Association’s (BVRLA) Fair Wear & Tear guide. This means that only genuine damage is charged. Light scratches, stone chips, small scuffs to the wheels are all deemed to be acceptable.
Naturally, if the vehicle is damaged beyond “Fair Wear & Tear” there will be additional charges to be paid. However, if you treat the vehicle like it’s your own and repair any large damage, returning your car at the end of your contract couldn't be easier.
If someone scrapes a key along the side of the vehicle and you owned it, chances are you’d get it fixed – so why wouldn’t you do it with a lease car?
As long as you can accept the fact that you never own the vehicle, simply hire it from the finance company...
Welcome to the world of Leasing!
Leasing or contract hire has always been a popular way of running a car for businesses, however, due to heavy depreciation and the unexpected repair costs associated with car ownership, more and more private individuals are looking at the option of leasing. Vehicle Leasing means you can drive a new car or van every 2 or 3 years, avoiding MOT's and unforeseen bills. You just hand the car back at the end of the contract and take out a new one, avoiding the hassle of having to sell your old car privately or the disappointment of low part exchange value. The added inclusion of manufactures warranty, road fund licence and breakdown cover offers you complete piece of mind.
About car leasing
Car leasing is a cost-effective and hassle-free way to drive a brand-new vehicle whilst benefiting from fixed monthly payments, manufacturer warranties, road tax and free delivery. We supply all makes and models of new vehicles from a national network of franchised main dealers. You don't even have to collect your vehicle as delivery is free of charge. There is even the option to add maintenance, which covers your cost of servicing and replacement tyres.
Who can lease a car?
One of the great things about leasing a car, whether it's a personal or business contract, is that almost anyone can do it. If you hold a full UK Driving Licence you can enquire on any car leasing contract. It is, however, worth remembering that you will need to be put through external credit approval with one of our affiliated finance companies to make sure you will be able to fund your monthly payments. Rest assured this is a quick and easy process.
Is leasing right for me?
If you would like an affordable way to drive a new vehicle every 2 or 3 years, avoiding MOTs and unforeseen bills, car leasing may well be the best option for you. This means you benefit from the latest models, technology, safety features and fuel-efficient engines, with no residual risk and no hassle of having to dispose of your old vehicle. Simply hand the car back at the end of the contract and take out a new one.
Why us?
Auto Choices have been offering leasing solutions since 2002 and we're able to make the process of driving a new vehicle as simple and hassle-free as possible. Car Leasing made simple! Over this time, we've forged strong, lasting relationships with dealer groups, manufacturers and vehicle finance companies, enabling us to secure the best discount terms and in turn offer the best leasing deals. We focus on building long-term customer relationships, ensuring that repeat customers and recommendations form a substantial part of our business.