Car Leasing Tips
From an industry expert
Leasing a vehicle can be an exciting prospect for anyone out there. The idea of recieving a brand new, newly plated, fresh vehicle straight to your driveway wets any car lovers appetite. Especially if you've factory ordered the vehicle to your exact requirements, which leasing allows you to do.
However, you need to consider the benefits of vehicle leasing - is it something you should do, or indeed something you should avoid?
Let's go through some of the financial options you have when leasing, they are:
- Hire Purchase
- Contract Purchase
- Finance Lease
- Contract Hire
So, what does all this mean? Let's break them down
1) Hire Purchase:- This means you technically own the vehicle and are happy to take the risk of it's future finicial value should you wish to resell
2) Contract Purchase:- Again, you technically own the vehicle, but you have no risk of it's future finicial value as it goes back to the people you got it from
3) Finance Lease:- You don't own the vehicle, but you do take the risk of the vehicles future re-sale value
4) Contract Hire:- The Most Popular choice, you don't own the vehicle and you have no future risk of anything (resale/finicial value) whatsoever. This is the one I would reccomend.
There are of course many many other contracts you can build, indeed a good company will create a bespoke one for yourself - so don't feel that these are the only options.
Let's move on to the fun part - the cars!
You have a world of options...quite literally, it all depends on what type of person you are and what you're going to be doing with it.
This is something I can't really help you with as everyone is different...i can however give a few pointers:
- Company Car Leasing:- business people, here is your chance to show off and save money. Estate agents, Directors, Networkers and so on - you'd like something a bit flash. Saloons and Coupe's - both evoke a sense power, prestige and modernisation.
- Commuters:- Go for cars that are exempt from the congestion charge perhaps? Fiat 500 is a good choice.
- Families:- SUV's could be a good choice if you're a big family, but you have to watch out for those vehicles that have a low MPG as they can eat away at your money saving
- Business Owners:- You've worked hard to start your business, why not reward yourself? Jaguar, Porsche, BMW, Mercedes...all great choices. Mercedes are especially competitive on the leasing marketing - i've seen E-Class Avantgarde's go for around £350 per month.
You can customise your car if you factory order with a list of options usual to the car you choose, this will effect the price of course but can you really put a price on your dream vehicle...?
So, you've got your contract you want and you've find the car you're after - now what, who do you contact? I highly suggest Brokers, as they often can get discounts on vehicles if they're any good. Being in Brighton (UK), there is one just up my road called Alternative Route Finance, been in business for over 12 years - so you know they're going to be good! When chosen a broker, look that they are a member of the BVRLA as this proves their authority in the industry and stand by good, honest practice.
You'll hear some terms you've probably not come accross before, but they'll all be explained to you.
So how about some do's and dont's of leasing?
- DO look around for your perfect car
- DO consider your finances
- DO consider if you're finances are good, you will be checked.
- DO be patient, factory orders especially need to be built, shipped, registered and delivered
- DONT expect a car within a week, plan it.
- DONT get angry with brokers, they find and order your vehicle - nothing to do with delivery and delays
- DONT get stung, always research the company you've chosen to go with
I hope this has helped, of course feel free to contact me should any questions arise.