How Does Car Leasing Work?

There is a lot of confusion over what car leasing actually is. Those who haven’t come across it before are often completely unaware of how it works. It’s a straightforward process that enables you to save money and know how much you are paying out each month. You can get premium cars at excellent prices and you don’t need to worry about depreciation.

So what actually is car leasing?

Put simply, it’s where you pay for the use of a vehicle over a set period of time. Unlike renting a car which is for short periods such as a few days or weeks, leasing is done over two, three or four years. With leasing you get a brand new car and pay an agreed monthly fee for the duration of the lease. One of the benefits of leasing is that payments are normally far lower than if you purchased a car on finance.

Leasing vs buying example:

Say you purchased a brand new Mercedes-Benz C220 AMG Sport you can expect to pay around £29,995. After three years you then decide to sell it and its done 30,000. You might be able to get roughly £17,000 for it. Unfortunately your car will have lost a little under half its value in three years. On the other hand, if you leased the same car it would cost a total of £10,865 over three years, saving you a third of the cost.

 

It’s totally different to buying a car, because at the end of the agreed period you simply give the car back. It’s a streamlined, hassle free process and you don’t have to worry about selling your car.

When you get a lease car you will enter into an agreement that defines:

·         The period the car will be leased, this can be two, three or four years

·         The amount you will be paying each month

·         The number of miles you are permitted to drive per year

·         Whether you want to include maintenance in your lease

So you want to lease a car, what now? The process of leasing a car is very simple. Here are the steps you will need to take.

The process of car leasing

  1. Find the right car from the wise selection on our website
  2. Complete a finance form on our website and submit your application
  3. Once you pass a credit check you will receive and order form to complete
  4. As soon as your car is ordered you will be sent finance documents which you will need sign and return
  5. When the finance company receive your documents you will be given a delivery date.
  6. You can drive away a brand new car, that’s all there is too it.

What are the benefits of car leasing?

 

If you are considering leasing a car you really need to understand the benefits. Once you know why car leasing is better you won’t think twice about choosing leasing over buying.

  • Avoid large depreciation costs
  • Get a brand new car
  • Upgrade your car every few years
  • Road tax included (except Mercedes)
  • Low deposit
  • Warranty included
  • Cheaper monthly payments
  • Fixed costs
  • No need to sell your car when the lease is over
  • There are numerous tax benefits to leasing
  • Get a higher spec car for less

 

We provide a transparent service that's built on trust and care about our customers which is why you should get in touch now and lease your car with us.

Call us and get a free no obligation quote today 01273 789 900.
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