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HelpFindMeA.co.uk has prepared a guide for you to help when choosing to lease a car.
Car leasing is the alternative solution to buying or owning a car. When you enter a car leasing agreement you will not be the owner of the car. Leasing is the popular method to keeping cars fresh, new, current and up to date.
Car leasing can be a very confusing product. Two main types of car leasing are contract hire and finance leasing.
Contract hire is the most popular with options for Business Contract Hire or Personal Contract Hire. This form of leasing gives you personally no liability on the residual value at the end of the contract.
Finance lease is a business option to leasing. Businesses can make monthly payments and at the end of the contract a residual value has to be met with the sale of the car. A proportion of the proceeds are returned to the lessee.
- You never have to worry about the residual value of the vehicle. So you simply hand the keys back at the end of the term every time.
- Lower fixed monthly payments allow you to budget your outgoings.
- The ability to drive better more modern cars at more frequent terms.
- You never own the car as the car leasing company will own the car unless you make the final payment or buy the car off them.
- You are in a contract term and ending a contract may incur some financial penalties.
- You must return the lease car at the end of the contract.
- Exceeding your mileage will also incur excess pence charges to your car lease.
Looking for the right deal is always important in any buying process. Understand the car you want first and do so some brief market research on estimated pricing at the moment.
Once you have found your ideal car lease or van lease then use our search facilities to locate a list of adverts.
Check the adverts and look for the profile and terms offered.
A payment profile is derived from the initial payment or the 1st payment you will be making followed by monthly payments of a fixed rental.
For example a 3+35 at £200 per month is a 36 month agreement.
The 1st payment is 3 x the rental, so £600 1st payment, followed by 35 payments of £200.
The lower the monthly payment doesn’t always mean it is cheaper. If you check the profile it may well still be a 36 month contract but a higher initial payment may be advertised. Also note that just because sellers have quoted a 6 initial or a higher 1st payment does not mean they can’t offer a competitive 3 initial or lower first 1st payment quote. Just simply request a quote from them.
Locate a few quotes using our website. Use the compare facility we have to check differences. Then request a written quote from your suppliers.
Once the car leasing quotes are in ensure you check they are like for like. Some companies may have quoted different terms, mileages and profiles. This means the quotes are incomparable so ensure they all quote to how you want the car and terms.
You are able to add optional extras to a vehicle. These optional extras may not make a difference to the residual value. If they don’t increase the residual value you will end up paying for these optional extras over the term of the contract.
Always go with your necessity rather than your desires.
Once you are happy with the lease deal, complete the paperwork and send it back to the leasing company. A credit check will be carried out for finance as this is a financial product. This search will be marked against your credit file. You will then be able to place an order on the car once an acceptance has been returned.
Like all products even if this is not yours at the end, make sure you carry out checks on the lease car that has been delivered. Any defects must be reported and rectified by the supplier. Any defects on return of the car will be charged back to you so ensure you look after your lease car like you would if you owned it.