Search by Price

minimum 0 100 200 300 400 500 600 700 800 900 1000
maximum 0 100 200 300 400 500 600 700 800 900 1000

About Car Leasing

 

How do I know if car leasing is right for me?

Are you the type of person who likes to change their car every few years...?

If so, then ask yourself a few simple questions:

• How much did you spend when buying your last car?
• How long did you keep the car for?
• How much did you sell the car for?

To work out roughly how much your last car cost you per month, let's do some simple arithmetic:

[what you spent] minus [what you sold it for] divided by [number of months you owned it]

Of course, you'll also need to add the cost of any road tax that you had to buy during the time that you owned the car and work out how much interest you paid out (if you took out a loan), or how much interest you lost (if you took the money from a savings account).

And the costs and inconvenience don't end there; when you finally sold the car, how long did the process take and much did you spend on advertising. Even worse, if you part-exchanged your car, how much less than the market rate did the dealer offer you.

On balance, when you add everything up – the costs, the hassles, the inconvenience – and you look at what you could have leased for the same money or less, you have to ask yourself: "why on Earth would I ever buy a car again...?"

Still not convinced...? why not read "A typical new car buyer's journey" below:

 

Contract Hire and Personal Contract Hire (PCH)

One of the most popular forms of car leasing in the UK is Contract Hire (including Personal Contract Hire), which is available to both business users and consumers (private individuals).

Contract Hire offers most of the benefits of car ownership, but without many of the hassles; in essence, you hire a brand new car for a fixed period - normally two or three years - at a predetermined annual mileage allowance to suit your needs.

Contract Hire is a simple and very cost effective way to fund any number of vehicles. Simply choose the vehicles you want, we deliver your new car to your door and you pay a fixed amount every month.

These payments go on for an agreed period of time, usually between one and four years. At the end of the agreement, we collect your car (which is then sold back to the motor trade) vehicle back and sell it. You can then choose another vehicle.

Importantly you never own the vehicle, we do. As it never appears on your balance sheet, it remains a business expense. Because we take the vehicle back, we agree up front the mileage your drivers will do on an annual basis and the number of years the contract will run.

Using this information, we calculate how much the car will be worth at the end of the contract, which is factored into your monthly payments.

Why choose Contract Hire?

There are many reasons why Contract Hire is so popular:

• Off balance sheet funding
• VAT efficient
• Fixed costs for the contract period
• Removes uncertainty of residual value fluctuations
• Takes advantage of volume related buying power
• Reduced administration
• Detailed reporting is provided
• Car leasing contracts are available with or without maintenance (which covers routine maintenance and servicing costs)
• Support services are available including fuel cards, accident management, and full roadside assistance

Low monthly rentals

There’s no large initial outlay and monthly payments are fixed, so it’s good for cash flow and makes budgeting a cinch.
You pay a fixed monthly rental and – at the end of the contract – hand the car back to the leasing company with nothing to pay (provided that the car meets the mileage and condition criteria agreed at the start of the contract).

Hassle-free motoring

So you don’t have the hassle of selling the car when you replace it. It also means you don’t have to worry about the risk of falling used car values (known as residual values). If the second-hand car market drops suddenly, that’s the leasing company’s problem, not yours.

Good for business

Most of the fleet management can be handled by the fleet provider, which frees up company resources and the funding isn’t shown on the balance sheet, which reduces a company’s debt liability and helps to improve your corporate credit rating.

End of contract

At the end of the contract, fleet providers will charge you for any excess mileage and damage to the vehicle. These charges can vary from reasonable to very steep, depending on the fleet provider, so check the small print before you sign. Also, if you end a contract hire agreement early, the penalties can be stiff – typically 50 percent of the remaining rentals on the contracts.