Car leasing guide for beginners
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Even though car leasing has now become incredibly popular, there are still many people who are relatively new to the term, and don’t fully understand how it works. So we’ve put together a quick and simple guide for people who are new to car leasing and want to learn more. It’s also a great idea to have a read through if you’re considering leasing your next vehicle, and want to know whether it’s the right choice for you.
What Is Car Leasing?
Put simply, car leasing is the long term hire of a vehicle, which you pay for in monthly instalments. Car leasing is different from ‘car hire’ as it has lower payments and a much more stable agreement. You can lease your car between 2-4 years, so you can choose the time period that suits you best. Once you’ve chosen your car (which is usually covered by a manufacturer’s warranty) you have fixed monthly payments until the end of your lease, where you can hand the car back or pay a balloon payment to keep it.
What Plan Can I Get?
There are different plans available when you lease a car, such as PCP (personal contract purchase), HP (Hire Purchase) and several finance options. PCP for example is open to everyone, and will allow you to return the car to the company, or pay a balloon payment at the end of your lease to keep the car. With several plans available, you can talk to an account manager to see which plan would suit you best.
Is It Cheaper?
Leasing is usually 30%-60% cheaper than buying a car outright, and you’ll never have to worry about your car depreciating in value. This means that if you choose to hand your car back at the end of the lease, you won’t lose any money. Also, the monthly payments are fixed throughout the lease, so you’ll never have any sudden payment changes.
Do I Have To Pay A Deposit?
There is the option for a no deposit car lease, which means that you don’t have to go through the laborious process of saving up for a large amount of money to put down. However, if you do decide to pay a deposit, you can actually lower your monthly payments.
What Credit Do I Need?
We help people with call kinds of credit situations, so a bad credit car lease is an option that is available to you should you need it. We also have something called an accommodation loan where the car is put into a close family members’ name, but the monthly payments come straight from your own account.
How Do I Choose A Car?
There are hundreds of cars online for you to choose from, whether you need a small city car, a large family car, or a sporty prestige car; there’s something for everyone. And if you’re not sure which one to go for, our account managers are there to help you find the best car for you. All you have to do is enquire online or on the phone, and you could be driving away in your dream car before you know it.