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Car Leasing UK: Ultimate Guide 2018

In this guide we will cover Car Leasing UK options across the board. Vehicle leasing gives you the flexibility of owning the car without a huge up front cost. Most of the time it allows effective cost of ownership. In other words, its cheaper for the duration you use the car. There are many forms in which a person or a business can "lease" a car but contract hire is most common.

Car Leasing UK offers a range of Personal and Business contract hire. Most of the time, VAT is the only variable factor but some deals are only available for Business use. In this Car Leasing UK guide we will cover all aspects of the process as well as how to get the best deal. What to look out for and the approach towards it. Lets start with an introduction to leasing and how it works.

Car Leasing UK: What is leasing?

Vehicle leasing is a form of a long term rental which allows you the use of it over the agreed term with set mileage. Mileage is normally allowed on an annual basis and is calculated collaboratively. Meaning, if you agreed on 10000 miler per year across 4 years, you can do 40000 miles in total over the full term. You will not get penalised for doing 11000 in your first year and 9000 in your second. This question is often asked and is important to clarify early, this will stop any confusion. It can save you money if you allow for any foreseeable circumstances which are temporary.

As the vehicle is classed as a long term rental and not a purchase. There are conditions put in place to protect the asset (the vehicle) over the duration of your usage. These terms are called Fair Wear and Tear guides and set out by the BVRLA, the governing body in leasing. These guide lines are set out to protect both the consumer and the leasing company.

The finance company that provides you with your Car Leasing UK deal can set out their own guide lines. This is sometimes done if the vehicles are of special origin or built. Please read all the paperwork carefully. Make sure you understand what you are responsible for before signing the agreement. This will insure you will avoid any unexpected surprises

Please read our guide on: How does leasing a car work?

When asking the question of "What is leasing?", this guide has the answers. The guide goes into in depth technicalities regarding the subject. We break it down to a 5 step process to help understand the factors within leasing. How to get the best deal and what to look out for when choosing your next car.

Car Leasing and PCP

Often consumers confuse what leasing is. There are multiple products which tend to fall under the "lease" umbrella and often terminology is misused. PCP is a close brother of Personal or Business Contract Hire. The two products get used under the term Lease by the consumers but it is important to know the difference.

PCP is a Personal Contract Purchase which means you are buying the car. You have the option of purchase at the end. You can choose to part exchange the car earlier than the end of the contract if your cars is worth what is owed. This is a popular way among consumers to buy their new car. This product can be beneficial if used in the right circumstances. But often left to the consumer to negotiate the deal for them selves.

Lease or Contract Hire is classed as a long term rental and has better financial advantages. As the rates are negotiated for you, you get the best deal straight away. This can allow you to pay less over a short period. Allowing you to change your car more frequent for less cost. As we enter 2018, the way we buy cars is changing and lease is definitely taking a step forward.

We have a stand alone guide about the difference between PCP and Lease. If you want to know more about the difference please visit our guide.

Guide: PCP vs Lease

The fine print within Car Leasing UK

When assessing if the deal would be suitable for you, please do not low ball your mileage. Every finance company will charge you if you were to go over on a pence per mile basis. This charge goes up depending on car value and can rise even further if above a threshold.

Lets do an example.

If your limit is 40000 miles over the course of 4 years. The first 5000 miles which you go over may have once charge. Once you go above the 5000 limit, you may get charged more. Make sure to read your contract in great detail, it may be worth paying more to get extra usage. It could save you money in the long term.

What is included when getting a lease car?

Car leasing in the UK is taking huge leaps forward in the consumer market. The general understanding of what you get with it can often be misinterpreted. Most of the time people who are not familiar with leasing use the knowledge they got from someone at the pub. Sometimes the information comes from bad experiences or someone who had an opinion. Reality is, vehicle leasing is very cost effective most of the time. Gather your knowledge to make your own decision based on facts. With this in mind lets go over what is covered.

Road Fund License - Car leasing companies offer road fund license for the full term most of the time. Exceptions can be seen but not often. The reason for this, the finance company owns the vehicle and is the one responsible for the taxation. This is often a huge advantage of leasing, especially with the bigger engines. Road tax is rising every year and often has bigger second year and onward.

Breakdown Recovery - Leasing finance companies will often include break down recovery. There is a simple reason for this. They do not want the asset abandoned if you ran out of fuel. As then it leaves the vehicle exposed for unnecessary damages. This is a great saving for consumers as RAC and AA charges get higher every year. Plus, its extremely convenient. Those of you who broke down before will know what I mean.

Nationwide Delivery - Most cars come with Nationwide delivery. It is however becoming clear dealers are starting to charge for Scotland delivery. Most of these dealers are based down south. Simple reason for this. Everyone is competing for business and they cant afford to operate at a loss.

Maintenance and Tyres - This can be included within the deal but often comes at a cost. The cost will depend if its provided by a third party, the finance company or the manufacturer. Consumers should shop around for the best deal.

Please note

Everything we covered so far sound great? We think so. You do have some responsibility. As discussed earlier, you need to stay within the agreed mileage and reasonable condition. If you choose not to go with the Maintenance option, Car Leasing UK requires you to service the car. Servicing must be done at your local franchised dealership most of the time. If it is not a requirement, we would still advise you to do so. The representative technicians know what they are doing and are the best for the job.

Please visit our Frequently Asked Questions section for more information: FAQ

Is Leasing better than Buying?

A question often debated by many, consumers and business users a like. The answer can be frustrating but it depends. It depends on many factors, such as current car leasing UK deals available against PCP. It is highly favorable towards how the manufacturer likes to push a particular model. A large proportion of the time, contract hire is cheaper.

From an investment point of view leasing is pointless as you do not have anything to show for it at the end. From the cost of ownership point of view it is a clear win.

A very small proportion of people keep their vehicles longer than the period of 4 years. If that is the case with you, car leasing is right product for you.

Low deposits and frequent change of their cars is a dream for most. Now it can be a reality with personal or business contract hire.

We have compiled a guide on this topic which covers all aspect of car finance. It breaks down the information in easy format.

Read our guide on: Should you Lease or Buy a car?

Alexander Stone car leasing UK broker network

We operate as a vehicle leasing broker from a network of suppliers nationwide. Going with us allows you to shop the market all in one go rather than visiting each place individually. Important thing to note is that dealership finance has not always got the best discount.

There are many companies which provide vehicle finance and not always manufacturer backed. Which means we will cross reference the market to get you the best deal available. Every vehicle will still come with every perk of getting a car from the dealership plus a few extras. We spoke about them earlier, please visit the FAQ section to refresh.

This gives you piece of mind when ordering your vehicle over the phone or online. If you ever had any technical questions, your local dealer will always be on hand to answer them.

What to do with my old car?

So you have decided to lease but not sure how to get rid of your old car. It is a common problem which puts consumers off from ordering online. There are several steps you can take to help you deal with the situation.

As discussed in our guide post "Should you lease or buy a car" we cover different services which can help. We Buy Any Car and Car-Ching guide can give you a rough valuation what your car is worth on face value. These services give you an inflated price which can be negotiated down once you've made the visit.

A broker (Alexander Stone) can arrange a bid for your vehicle from within our network. Our network allows you to know the vehicle would of have more than one opinion assuring better value. The dealer would then take the car of your hands providing the condition of the car has not changed. The correct settlement procedure would then take place if finance was present.

Most lease car order take a few weeks before we can arrange delivery. This gives you the option of trying out your sales skills for your self. It can often be the most cost effective option but can take some perseverance. As traders will often approach you with a view of negotiating the price down to sell for a profit. It is worth trying this option if you have the patience to get the most for your car. If you have finance on the vehicle, you will likely have to settle it before selling. Not after you receive the money.

We have included a guide from Auto Trader to help you understand what your options are.

Car Leasing UK - Conclusion

Consider all of the options before making the correct decision. Getting a new car can seem confusing and scary. We hope guides like this make you equipped with the information to make the right choice. It all comes down to circumstances and your preference.

If you or your business like to change the vehicles frequently keeping in line with warranty and MOT. Vehicle leasing gives your the reliability you need and easy driving. Often being the cost effective option for the ownership of the car. Hassle free driving and only worry about insurance and fuel. That's the case if you chose to go with the maintenance option.

Hopefully at this stage you are somewhat of an expert on the subject. You now have all the information you need to tackle the world of consumer or business leasing. If you do need a helping hand of finding you the best deal, get in touch!

If any of this information is confusing or you need some further advice. Please do not hesitate to call Alexander Stone Ltd on 0191 691 1351 or email on info@alexander-stone.co.uk

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