What is Leasing?
Leasing is a popular way to run a brand new car with regular and predictable running costs while being covered by a manufacturer’s warranty and often breakdown cover. It’s a similar process to hiring a car on holiday but over a much longer period – typically 2-3 years. You’ll know exactly how much you are paying each month (excluding insurance, petrol and maintenance) and you won’t have the hassle of having to sell the car or negotiate with the dealer at the end of the agreement – the car is handed back at the end and you’ll move on to the next great deal!
How leasing a car works
A lease is a form of a finance agreement with a number of set financial variables. These include the initial non-refundable upfront payment, the monthly payment and the administration fee payable to the broker. In addition, you’ll also need to know how many months the agreement lasts for and the number of miles per year you are permitted to drive within the agreement.
The lease is typically organised through a middleman called a broker but it’s not uncommon for dealers themselves to offer leasing deals. To find a deal you’ll need to look at the many different broker websites and narrow down your search for the model(s) you are interested in. This can be a very time consuming process which is why LeaseBeast handpick the best deals and post them on our website every week.
Will I own the car?
To put it simply, no! You will never own the car nor will you ever see the log book (often called the V5C). The car is registered to the finance company and they even take care of the road tax for you. You really are borrowing someone else’s car over the 2/3 year agreement!
Why would I want to drive someone else's car?
The answer is that it really doesn’t matter and it won’t affect your enjoyment or use of the car.. The key consideration with leasing is determining how much the lease will cost over the agreement, then calculate how much the car would cost if you bought the car outright. You can use our Calculator to help you work out the maths.
So...is leasing for you?
Well that depends on your circumstances but it certainly can be a great, affordable option without much of the hassle of buying a car outright. Sign up to our email list to receive the best Car Lease deals, straight to your inbox.
To find out more download our Complete Guide to Leasing.