How does leasing a car work is a question we get asked often. Being experts in our field, we decided to break the information down in 5 easy steps. The world of getting your new vehicle is changing and its important to keep up with the times. The motoring market is forever expanding. You have probably noticed this by forever growing road works that keep up with the demand. They may be inconvenient but we will all be happier with practical roads.
With this in mind, there are more than one way of getting your new vehicle. You no longer only have the option of going to the dealership. Leasing a vehicle is growing at a rapid rate and its important to know how does leasing a car work.
Each year more and more people choosing to source their new car via a lease oppose to a purchase. This allows you to drive a new car without a big upfront cost. And give you a lot more value for money during the course of ownership. We understand leasing a car can seem confusing so without further a due, lets get to it.
When asking you self the question of "how does leasing a car work?" you must first have an idea of what car it is you want! Naturally, this is one of the toughest steps. There is so much choice and because the RRP is not the definitive factor in pricing, makes the job difficult. Cars that tend to be the best are the ones which hold the value in the years to come. There are a number of vehicle reviewers which can aid with your choice such as Honest John.
Besides from the pricing factor, its important the car has everything you may want out of it. This will be a combination of looks, fuel economy and specification which comes with the car. Some factors are more important than other but only you can be the judge of that.
Please take your time in choosing the vehicle and remember, price is not everything. Too often our customers choose to go for the lower specification model because its X amount of £'s cheaper. Only to regret that decision 6 months down the line. Reversing parking sensors may not seem important now, but they can be in the future. As you are committing to a particular driving of the vehicle, make sure it is the right one for you! We have included some our special car deals below, to give you some inspiration.
Most people in the UK will remember the financial crash back in 2007. For most it was a time of uncertainty and many have suffered financially. So when you ask "How does leasing a car work?" this is a big part of it. Because of the irresponsibility of many lenders, we now have stricter rules in place. These rules have been set up to protect the consumer market (me and you) from taking on debt we can not afford.
Having a good credit history is no longer enough to get whatever you want on finance or lease. A huge part of eligibility is now down to affordability. This is calculated by many factors. Income is one of the biggest ones, income is not just calculated by the amount of your salary. Any forms of income can be used such as rent, investment income or interest earned.
Your outgoings are the next thing they look at. They look for free cash flow within your financial means with the ability to afford the vehicle. Being able to afford it without a struggle would be more precise. Most of you will know if something is affordable or not but some people live beyond their means. It is our job to practice responsible lending. We must protect consumers who may regret their decision in the future.
The actual proofs vary from case to case. The lender may choose to ask further information to get you approved for a vehicle. When asking of how does leasing a car work, we must understand what is involved. Generally speaking driving license is the least they would need. Extra information may be required like Utility Bills or Bank statements.
This is where the fun part begins! Once the paperwork has been completed and everything is in place. We wait for the delivery date. This can vary depending on where the car is being built or if its physical stock. Generally speaking it can be anywhere from 2 weeks on wards. It is unlikely you would get it any sooner.
Picture your vehicle getting dropped off at the place of your choice like the comfort of your own home. Future is now! It is becoming as easy as ordering your shopping online. Well... maybe not that easy yet.
You will get a basic introduction to the controls of your car and asked if you feel confident. At this point the vehicle is yours to drive over the agreed term and mileage.
What it says on the tin! Enjoy your brand new car and everything that comes with it. No MOT costs until the car is 3 year old. Road fund license is typically included for the full term of the lease. Breakdown recovery is also included with majority of the leasing companies. We are now becoming experts at answering the question of how does leasing a car work.
Less worry and more enjoyment, what more could you ask for?
So now we are at a stage where you have been driving your wonderful car on the selected term. Majority of customers now starts looking at the new potentials. As the manufacturers will always battle it out for market share, there are always deals to look out for.
Our advice would be to start looking 3-4 months in advance. Most cars will take time to get built and you do not want to come up short. Your car can go back and you still have not received your new one. Start early, give us a call for advice or any upcoming deals you could take advantage of.
Lets imagine a friend at the pub asks you "how does leasing a car work?" we are confident you will now be able to help. Or at the very least point them to this blog post to find answers for them selves. We will always operate through transparency with our clients.
Please note, we have discussed the information around individual basis and not big fleet operations. If you require 10 or more vehicles please contact us directly for more information.
When you have the knowledge, you feel empowered to make the right decision. If you have any further questions do not hesitate to contact Alexander Stone Ltd via email on email@example.com or call us on 0191 691 1351.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
Alexander Stone Limited
Back of Wingrove Road
Newcastle Upon Tyne
Alexander Stone Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 743279
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Registered Office : Units 1-2 back of Wingrove Road, Newcastle upon Tyne, NE4 9BS
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