What is Vehicle Leasing?
Vehicle leasing is essentially a long-term rental. You make an initial payment, then a fixed monthly fee for the length of your contract.Leasing is an alternative and often cheaper solution to buying a new car or van with a bank loan or dealer finance. You can enjoy all the benefits of driving the car but, because you don’t own it, you don’t have to worry about it decreasing in value over time.
How vehicle leasing works…
You pick your desired vehicle and choose the length of your contract, this is usually 2 to 4 years, you then choose your estimated mileage. You then pay an initial payment, usually the same as three monthly payments, followed by fixed monthly payments for the rest of your contract.
Vehicle leasing includes road tax for the duration of the lease, so you don’t need to worry about paying for it separately.
You can also add maintenance into your monthly payments for a fixed extra monthly fee, which can save you the hassle and, possibly, money. Maintenance payments cover things like mechanical and electrical repairs, breakdown cover, and more.
Once you’ve agreed the contract, the leasing company will deliver your car. From then on, it’s yours to drive and enjoy for the rest of the contract!
Do I need to buy insurance?
Just like when you buy a car, you’ll need to arrange your own insurance for the car.
What happens at the end of the lease?
Once your lease contract is up, you return the car to the leasing company and you’re free to lease a new car. So long as the car’s in good condition and you’ve stuck to the mileage you agreed at the start of the contract, you won’t have anything more to pay. Not owning the car means you don’t have to worry about selling it on.
You can simply return it and get on with picking your new car…no hassle!