Leasing a car is a fantastic way to get behind the wheel of a brand-new car without going into debt. A lease provides you with many options, including choosing the vehicle’s make and model, the down payment amount, the mileage, and the monthly payment amount.
Additionally, you never have to worry about the car’s value dropping and going through the process and stress of selling your car.
This quick guide will teach you everything you need to know about leasing a car for the first time and how to find the most affordable leasing deals UK has to offer.
What is Car Leasing
When you lease for the first time, you are essentially hiring a car for a certain period and paying a monthly payment rate. It’s similar to renting a flat, where you don’t own the space after your rental agreement ends. When the lease agreement ends, the leasing agent remains the title holder of the car.
There are several benefits of leasing a car, including how affordable the monthly payment is to drive a brand-new car and having the option of driving the latest and safest car models every two to three years.
What Are the Types of Leases?
Understanding the types of car leasing agreements is essential, whether you are leasing a car for yourself or your business.
Personal Contract Hire
A personal contract hire (PCH) allows you to lease a new vehicle every few years for an affordable monthly payment without worrying about the car’s resale value. This type of lease agreement does not come with a buyout provision.
Business Contract Hire
With a Business contract hire, businesses can lease a vehicle long-term, usually ranging from 24 to 60 months. This type of lease agreement is common for the commercial sector; however, it is an excellent option for sole proprietors, small businesses, and large corporations.
Whether expanding an existing fleet or replacing older models, fleet leasing is an incredible option for businesses requiring many cars at once. Fleet leasing is geared primarily toward reducing costs and speeding up the purchase process. Essentially it eliminates the hassle of leasing vehicles like the everyday consumer and saves the business money.
What Are the Steps to Leasing a Car?
- Use Comparison Sites To Find Your Car
Use a comparison site to browse and find your next car. This will help you determine what you can afford monthly, the type of car you want, and if any incredible deals can save you a ton.
Most sites have detailed searches dedicated to helping you understand the car’s fuel efficiency and mileage options and enabling you to compare one leasing agent’s prices with the next.
- Get a Quote
After narrowing down your search, contact the broker that offers the best leasing deal. Depending on your needs, the quote you ask for should include important details on maintenance packages and ask about their insurance plans.
- Provide the Necessary Documentation
Once the quotation meets your expectations, it is time to provide the broker with the proper documentation. Most brokers will do a credit check, but there are options for those with a bad credit history.
The documentation required is:
- A valid driver’s licence
- Proof of income
- Proof of residency
- Insurance and policy card
Please note that additional documentation might be required from the broker as part of the application process. Confirm with the broker which documents you will need when you apply.
- Maintenance Package
All repairs and maintenance are your responsibility when you lease a vehicle, and you must return it in the same condition you received it. Some leasing brokers, however, offer an optional maintenance package to cover routine repairs and servicing of the vehicle.
As long as the car remains within the BVRLA’s fair wear and tear standards, you won’t need to worry about making arrangements for repairs when the car is returned.
- Get Insurance
Car insurance is not included in most leasing agreements. Regardless if you are the safest driver in the world, getting insurance from the broker will cover any issues outside your control.
The insurance you receive will cover the vehicle if it is ever stolen or if you have an accident. Complete coverage includes protection against fires, damage, and if the car needs to be written off.
- Enjoy Your Car!
Once the leasing agreement has been finalized and the paperwork has been signed, it is time to enjoy driving your car. The process is simple and seamless.
Before buying a brand-new car, consider leasing. A leasing agreement is a hassle-free way to drive the car of your dreams for a fraction of the price.