There is certainly one aspect about car leasing that sets it apart from other vehicle deals available – it gives you a brilliant chance to have a new vehicle of your choice, even a luxury, high-end one, without spending too much on a deposit or monthly payments. But it comes with more than a few other advantages as well. If you have never taken advantage of a vehicle lease agreement before and would like to find out what the process is and how it works, here’s everything you should know about car leasing – and what it can really do for you.
What is it?
Essentially speaking, vehicle leasing is just like leasing a house or flat, but instead of property, you are leasing a vehicle. You are renting a vehicle that’s brand new and making monthly payments on it for a set duration and with an agreed-upon mileage limit. Once the deal has ended, you can simply give the vehicle back to the lease provider.
Vehicle lease agreements are popular with numerous small businesses and personal customers because it’s a cost-effective alternative to purchasing a vehicle or fleet of vehicles. Since it doesn’t come with a high deposit and it has fixed payments per month, it allows you to budget your funds more effectively, and it’s more affordable than buying or purchasing a vehicle on finance.
How it works
When you lease a vehicle of your choice, you are paying for the use of the vehicle for a time, usually a few years. The monthly payments are agreed upon before the start of the deal, and you will simply have to settle these payments during the entire contract.
Vehicle lease deals can be tailored according to your needs – you can choose the vehicle you are interested in, get a quote from the provider, and you can decide on the annual mileage, the contract’s length, and even the deposit in some cases. Deals like these don’t come with any hidden expenses, either – what you see is what you get. You will simply settle an initial deposit at the beginning of your agreement, and the remainder of the price will be paid by you every month throughout your lease. The process usually involves a straightforward and simple credit check, not like the detailed checks you may go through with buying a vehicle. Once it’s done, you can arrange for financing and decide on any extras, and after you sign the agreement, the vehicle is yours to use for the set period you prefer.
The general inclusions
There are some general inclusions when you lease a vehicle in the UK, and this often includes the free delivery of the vehicle to your door if you are on the mainland, and it includes road tax as well. Vehicle lease and contract hire deals will also usually come with a warranty from the manufacturer, and depending on the contract, it can come with breakdown assistance for 12 months.
To get the most out of such a deal, you should determine your budget from the start as well as determine the kind of vehicle that is most suitable for your requirements. List down all your preferences and requirements, be it the model, the body type, the fuel type, and so on, and you can then do your search.