Leasing comes in many different forms but the most common is Business Contract Hire or Personal Contract Hire. This is where you effectively hire a vehicle for a period of time and at the end of the contract hand it back.
The one question that we get asked a lot is should I buy or should I lease. In short everybody is different and have different requirements so not one shoe fits all. Leasing is an ideal solution for many and if you would like a new(ish) car, change your cars on a frequent basis, need reliability, want to manage your costs then leasing is ideal for you.
If you are looking to keep a car for a number of years, generally I would say more than 5 years, you don’t like the idea of not owning a car, It’s going to be used as a work horse so maybe get damaged! You are going to be doing very high mileage, then leasing probably isn’t for you.
Compared to the cost of a new car and how quickly they depreciate leasing is a cost effective way of running a car, as Paul Getty once said if an item depreciates in value lease it, if it increases in value buy it.
Leasing has always been popular in America and was introduced here in the UK by Ford over 20 years ago. Many of the big banks jumped on board and initially made big mistakes with the value of vehicles but traction took hold and from around 2010 we have seen increasing popularity in leasing. Although Ford brought it over to help move more cars it’s also been the downfall of the Mondeo as people switched to more prestige cars, although a prestige cars list prices is higher, their used value is also higher so it can be cheaper to lease a BMW than a Mondeo and that’s what many people are doing.
Most of this leasing was originally dedicated at the business sector but in recent years nearly all of the big leasing companies now offer both business and personal leasing with the key difference being the VAT element. A company can reclaim 50% of the VAT back on a car and 100% on a commercial vehicle
Obviously if you have advantages there will also be Disadvantages and the common question that we get asked are:
Leasing isn't for everyone but for many, be it businesses or private individuals leasing can be a cost-effective way to run a vehicle.
With advancements in new vehicles and more and more electric vehicles coming on the market leasing gives you the security that if anything goes wrong with your new vehicle it will be covered under warranty, you don't have to worry about depreciation, that's the lenders worry! At the end of the lease, there's no need to go through the 'sell your car process' simply order your new vehicle and hand one back while the other is being delivered.
If you take out a loan of say £15000, you will be paying around £460pm over 3 years. Leasing starts as little as £120pm for a city car and for £250 a very nice mid-size cars, by the time to get to a budget of £400pm you could be driving a very smart BMW, Mercedes or Audi.
Why not have a look at some of our special offers to see what you could be driving.
If you have some questions and to see if leasing is for you then why not give us a call on 01242 505051 or request a and we will give you free honest advice about the options available to you.
20th October 2020
Email : firstname.lastname@example.org
Telephone : 01242 500255
Company Address :
MPH Vehicle Solutions Limited
122 Winchcombe Street
MPH Vehicle Solutions Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 677046
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Registered Office : Pittville House, 122 Winchcombe Street, Cheltenham GL52 2NW
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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