Leasing a car means you pay only a portion of the vehicle’s cost – what you “use up” during the time you drive the vehicle. It is not the same as buying a car, where you ultimately end up owning the vehicle after you have purchased it outright or once all payments have covered the entire cost. The leasing samochodów is affordable for most folks who are not able to own vehicles of their own. In many car lease agreements, you can either return the vehicle or buy it for its depreciated retail value.
OF CAR LEASING
This is one of the key benefits of leasing: It offers significantly lower monthly payments than buying. Let’s look at an example:
Say you lease a £25,000 car that will have a resale value of £15,000 after 36 months. You only pay for the £10,000 difference (or depreciation value), plus finance charges, plus possible fees. It certainly works out cheaper than having to pay the £25,000 up front or over the longer term with interest charges.
Another advantage of leasing is that you can have a new vehicle every two or three years with no repair risks.
Finally, for many people, not owning the car is outweighed by the benefits of lower monthly costs.
CHOOSING THE RIGHT CAR LEASE
For business users, there’s a selection of contract hire, lease and purchase plans to finance your cars. Most car leasing companies also provide a range of personal finance schemes open to individuals.
A key aspect to consider in business or personal car lease
- The length of contract – generally between 24 and 60 months. The longer the contract term, the lower the monthly payment.
- Depreciation value of the car – a car that depreciates less, or has what is termed a high residual value, is cheaper to lease than a vehicle that depreciates more over the same contract term.
- First lease termination penalties – breaking your lease before the agreed contract length can incur costs. Look into what these are in case your circumstances change during the agreement.
- Excess mileage charges – contract terms are partly based on estimated mileage. If you exceed this limit, you may face excess mileage charges.
- Wear and tear – Any car leased must be brought back in its original condition to the dealer. Understand the cost and penalties of excessive wear and tear contained within your car lease clause.
- Modification clauses – Customers cannot modify the vehicle in any way. If you do make any changes, you’ll be liable for the cost of bringing the vehicle back to its original condition.
What’ is included in a car lease
- Initial down payment, usually three times the monthly payment
- Monthly payment cost based on length of contract and set miles per annum.
- Maintenance (although this can often be an added extra)
You must be 18 to enter into a legally binding credit agreement such as a car lease contract. You should inform your contract leasing provider in advance before taking on overseas car journeys as you require their permission.