Why Lease or Hire Instead of Buying
There are several potential advantages of leasing a car compared with buying it. These include:-
Lower cost, conserving capital, less maintenance, avoids disposal costs and problems.
The main disadvantages of leasing are that you need to estimate your annual mileage, you will be required to have fully comprehensive insurance, there may be less choice when ordering, particularly in you want to get the best deal, and you may need to plan your replacement vehicle in good time, as there may be some inflexibility at the end of the contract period.
You will also need reasonably current business accounts or a clean credit rating.
With a little luck or patience, there are some unbelievable bargain deals when leasing a car. If you are prepared to be slightly flexible, it can cost about half as much to lease a car as to own it.
Most of the best car leasing deals are restricted to certain models, sometimes basic models, sometimes special editions, or higher specification models. In most cases, specifying extras will add significantly to the cost, although not always.
How & Why - A Brief Explanation of the Leasing Market
It is common knowledge that car manufacturers pre-register cars to massage their sales figures. They also give special volume discounts to some major dealers or fleet operators. Bank and finance houses may guarantee to buy a number of vehicles which they then lease out. Manufacturers may give guaranteed residual prices to volume buyers.
Fleet operators and volume buyers may undertake to retain the vehicles for a specified minimum period of time before disposing of them, to help protect the manufacturers short term future markets. Any and all of these factors may come into play when leasing companies perform their actuarial computations and calculate their hire rates.
A few quotations and advice from other leading websites:-
Contract Hire & Leasing
Contract Hire is the leasing of a vehicle, normally to a vat registered business or company, for a set time and mileage at a fixed monthly rental. The monthly rental is determined by the cost of the vehicle, the period and mileage covered as well as the resultant depreciation. Maintenance packages are often included within Contract Hire agreements, but are not obligatory.
Advertised rates often rely on short term marketing programs based on a specific number of vehicles sold by a certain date and although we endeavour to keep these offers up to date 'supply and demand' dictates the advertised car may not be available at by the time all paperwork and credit checks are completed. In this circumstance we will try to find the best alternative to suit. Please call to register for availability, updates or a firm quotation to suit your specific requirements. We will make contact with you within 2 hours to progress your enquiry. All nearly new vehicles undergo a complete RAC inspection and are HPI cleared. Unless otherwise stated include RFL for the duration of the contract. Rates based on advance deposit, followed by monthly payments are for guidance only. Written quotations are available on request and are subject to credit acceptance, completion of all paperwork and cleared deposit.
What Car Magazine
Best Value Leasing Deal in Britain - BMW 730D
Best Budget Deal Fiat Panda 1.2 Dynamic
Car Leasing UK
Best Car Purchase Deals
Somtimes a straightforward outright purchase may be the best deal, and we provide a page for these also.