When it comes to choosing your next car, the question of how to purchase is almost as crucial as what to purchase. After all, how you pay for the vehicle will affect both your short and long term budget, so it’s crucial to pick the method that suits your personal and business situation best. Car Leasing in an increasingly popular choice for car buyers and, when you consider the benefits on offer, it wouldn’t come as a surprise. Here we look at the main pros and cons of leasing, plus run down the UK’s most popular cars for lease deals.
Business lease cars
Businesses across the UK are waking up to the many advantages of leasing their company cars on agreed mileage contracts. The best cars on business lease are a very cost-effective when compared to taking out a car loan, but options such as contract hire acts almost like a rental issued as a monthly invoice allowing you to claim the amount back on expenses and taxes with the added bonus of upgrading your vehicle at the end of the term with far more regularity and flexibility.
More important from a business perspective, however, is that cars depreciate in value over time. By leasing instead of buying outright, you’re not tying your cash up in an asset that becomes less valuable by the year. Also, you can reclaim half the VAT you pay on your lease deal.
If you contract hire cars on business lease, you may expect to be asked for a number of payments in advance. Depending on what sort of vehicle you are looking for this could be as many as nine payments and as few as one, with the average deal requiring three payments. The contract will be limited to a certain number of miles, the highest range for which will usually be about the 40,000 mark. Should you break this limit, an agreed fee will be payable at the end of the term.
Of course, not all business car lease deals are the same and so there are certain benefits you should make sure are covered on your contract before you sign. For example, it’s common for the leaser to offer cover for the maintenance and servicing of the vehicle, ensuring your car stays in tip-top shape without any additional cost to your business.
Personal lease cars
Although, a more common option for businesses, leasing a car for personal use is of near equal benefit to the driver. For affordability, Convenience and flexibility, it’s a far better option than outright buying, hire purchase or taking out a car loan.
When comparing the best car deals on personal lease you’ll manage to find low monthly payments, all-inclusive servicing and the freedom to upgrade without the hassle of buying and selling. This sidesteps all the problems offered by the other potential purchasing methods. You don’t have to stump up the full price, you don’t have to worry about depreciation and you can drive a car that’s above your affordable price range.
Cosmetically, personal lease cars mirror their business equivalents. As with leasing a company car, you should expect to stump up at least three monthly payments before you receive the vehicle and the maximum mileage is likely to tap out at 40,000. One perk you won’t find in your personal contract, however, is the payback on your VAT, which is only available to VAT registered businesses.
Despite the advantages of leasing, many in the UK still feel there is more value in purchasing their cars outright.
Yet, thanks to the savings and freedom they offer, leasing a car continues to be increasingly popular with UK motorists who prefer a new car of their choice without breaking the bank.
Best selling lease cars in the UK
Ok, so you’re considering to lease a new car. But what model do you choose? To help you decide, we’ve put together the three best sellers in the UK for both personal and business use.
Sturdy and powerful yet always sleek and stylish, it’s little wonder why Mercedes-Benz car leasing continues to lead the pack when it comes to popularity on these shores. Personal drivers love the Mercedes A Class, an elegant hatchback that’s big on performance. Company car buyers prefer the Mercedes C Class. With its supremely efficient low CO2 emissions, it’s sure to keep those running expenses in check, while the muscular chassis manages to stay stylish and business-like.
Gaining an increasing market share within the UK, Audi’s A3 is a perfect family hatchback, which is why it’s managed to stay so popular for so long with personal buyers. The interior has been crafted for comfort, while the exterior has been crafted for style, making it the ideal transport for long or short family trips. For business driving, the Audi A4 hits all the right notes – a nicely priced, powerful and fuel-efficient saloon with sporty handling.
Britain’s all-time favourite and most sold car, Ford is still the most popular personal car in the UK and if the reasonably priced entry level Fiesta gives you great value for money then who could argue with that? Truly, this eminently drivable hatchback is to everybody’s tastes – as powerful as it is fun, comfortable and affordable. Business buyers should check out the Ford Mondeo Vignale Saloon. With a 2.0 litre bi-turbo diesel engine, it has plenty in the way of power. A shedload of luxury features complete its impressive package.
Car leasing offers a huge number of benefits to both the personal or business driver. If you want to keep the money in the bank and protect yourself from depreciation without lowering the quality of your vehicle, this is the ideal option for you.