Car lease in UK
Car lease deals in UK
Car leasing and contract hire are becoming increasingly popular in the UK, many motorists, both private and business, are realising they can drive a premium brand such as Mercedes or BMW for the same price as a family hatchback! In fact some experts in the motoring industry feel that within the next 10 years there will be more private motorists leasing than buying! There are many online leasing companies in the UK who can help you find over thousands of car leasing, van leasing and contract hire offers to choose from.
What exactly is Car Leasing and how does it work?
Car leasing is basically an arrangement where customers hire a vehicle for a fixed period(specified at outset) and set mileage by paying a fixed monthly payment to the company who actually owns the car (the car leasing company).
What are the advantages to leasing a car rather than buying?
Car leasing is really for everyone nowadays, no longer the preserve of the big corporations and high flying business users. A lease on a car allows customers to acquire cars which may otherwise be beyond their budgets.
Things to consider when contemplating a car lease in the UK
First of all dont just look at the monthy price quoted online and in car magazines. The price for a car lease, even on exactly the same models, can vary greatly depending on the following factors:-
- Estimate your car usage accurately before entering into a contract because excess mileage charges will apply and once again check the small print, some companies will offer really cheap deals but then claw back the money from those unfortunate drivers who go over the mileage limit.
- Read wear and tear clauses in the contract carefully. Some companies will accept minor scuffs, marks and scratches as normal for the year - others will expect the car back in exactly the same condition as supplied when new - this means you will have to pay for any damage at all to paintwork, interior etc.
- Maintenance and servicing: some leases will include all maintenance, servicing and even will replace wear and tear items like tyres, brakepads and clutches etc. Whereas some do not include any servicing at all and simply pass on the manufacturers warranty.
- Length of Contract: Generally speaking, the longer the lease the cheaper the monthly figures, typical lease agreement periods are 18 - 48 months.
- The residual value of the vehicle: Its important to choose a vehicle with a good residual value. This can often mean picking a more expensive vehicle can work out cheaper in terms of leasing figures - this is why the BMW 3 series is currently outselling the Ford Mondeo, the BMW has much better residuals which lower the monthy payments required.
- Termination penalty clauses: Many lease agreements have heavy penalty clauses for early termination. Check this small print out carefully.
Car leasing companies in UK - the small print!
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