Welcome to Car Leasing Guide
Your Plain English Guide To Car Leasing & Contract Hire
The Car Leasing advice in this Guide should help you find the answers to most of your questions about how to lease cars. In this Guide to Car Leasing and Van Leasing, I hope to provide you with help and advice which will enable you to make an informed decision on whether Contract Hire and Leasing is right for you, and how to find and negotiate the best Car Lease Deals!
These are the main topics I shall be addressing:-
- What is Car Leasing?
- How does Car Leasing work?
- Car Leasing vs Buying – which is best?
- Company Car or Company Car Allowance?
- What are the Benefits of Car Leasing?
- Should I choose a Business or Personal Lease?
- How to negotiate the best Car Lease deals!
What is Car Leasing?
Car Leasing (also known as Contract Hire) is simply the hiring of a vehicle for an agreed period of time for a fixed monthly rental. Unlike Short Term Rental or Daily Rental, a Car Lease is usually for 2-5 years, after which lease cars can simply be handed back with no further commitment or, in some cases, you may be able to purchase the vehicle if you wish.
How does Car Leasing work?
Almost all new cars and commercial vehicles are available on Contract Hire. So, the first thing you should do if you’re thinking of leasing a car or van is to decide on the make and model you want, plus any options or extras you would like – just as if you were buying the vehicle.
Then decide how long you want to keep the lease car, what your annual mileage is likely to be, and whether you want to include Maintenance in the Contract Hire agreement. If you add Maintenance to your contract, all bills for repairs, tyres, servicing and parts are paid by the finance company. If you are unsure about any of these factors, you should seek car leasing advice from a reputable Car Leasing Broker.
Your monthly payment depends on your annual mileage, the cost of the vehicle, and what it’s likely to be worth at the end of the contract hire (known as the residual value). Road Tax is usually included for the duration of the Car Leasing period – all you need to do is insure it and put fuel in!
Car Leasing vs Buying
Car Leasing Guide will help you decide whether to lease cars or buy. When looking for car leasing advice, many people are faced with the Lease vs Buy dilemma and which is best. And the short answer is – it depends!
To decide whether Car Leasing or buying is best for you, a number of points need to be considered. Our section on Car Leasing vs Buying should help you make up your mind.
Company Car or Company Car Allowance
Of course, your first question may not be “Should I lease or buy?”, but whether to accept a Company Car or a Company Car Allowance from your employer. If you decide to accept the Car Allowance, or ‘Cash For Car’ as it is sometimes known, you will then have the choice of leasing or buying. The Company Car Allowance section of Car Leasing Guide gives more information.
Benefits of Car Leasing
There are many benefits of leasing a car, which is why Car Leasing is becoming more popular every year. Not only is it cost effective and tax efficient for businesses to lease cars rather than purchase them, but there are also many reasons why it makes sense for the private individual. Check out our Car Leasing Benefits section.
Business Contract Hire or Personal Car Leasing
There are various types of leasing. As a Company Director, Partner or Sole Trader, you may be unsure whether Business Contract Hire or Personal Contract Purchase is the most cost effective and tax efficient way to lease cars. You should, of course, seek car leasing advice from your accountant or a reputable Car Leasing Broker about this, but the Car Leasing Guide section on Company Car Tax offers more information to help you make up your mind.
Check out our Car Leasing Blog for regular helpful tips and advice on Vehicle Leasing and general motoring issues.