Do you want a new vehicle but can’t afford to pay up front and the bank won’t loan you the cash? Thankfully, there is an alternative: leasing. In order to lease a vehicle, you will be required to make a small down payment followed by regular payments for the duration of the agreed lease term. When that term expires, you simply return the vehicle.
Recent figures from the British Vehicle Rental and Leasing Association (BVRLA) have shown a steady increase in the number of cars and vans being leased. According to a survey of its members, car and van leasing numbers grew 12 per cent year-on-year.
Advantages of leasing
• No large deposit is required, which means you can afford more expensive vehicles than if you had to purchase one outright.
• Agreed regular payments mean you are able to predict expenditure.
• You can keep leasing different new vehicles by trading in each time a lease term ends.
Drawbacks of leasing
- You will never own the vehicle, even when the lease period ends.
• Over a longer period of time, the cost of leasing several cars is likely to exceed the purchase price of a single new or used car.
• You may face financial penalties if you want to return the vehicle before your lease expires or if you fail to keep up your regular payments.
In order to get the best deal on the vehicle you wish to lease, you should follow these key steps:
1. Decide which type of vehicle (MPV, hatchback, electric, estate, sportscar) and which model you want.
2. Take several vehicles for a test drive to help you choose the best one for you.
3. Ask the dealer what safety features the vehicle comes with, such as ABS, side-impact air bags, and electronic stability control (ESC).
4. Compare lease deals at home, working out how much you can afford to pay on a regular basis.
5. Negotiate a purchase price that is between the manufacturer’s recommended retail price and the dealer’s wholesale price.
6. Agree on an initial (and affordable) down payment amount.
- Ask the dealer whether the car comes with an MOT or not and if it doesn’t maybe try a MOTs Gloucester service such as https://www.123carandcommercial.com.
- Drive away in your new car!