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When does it make sense to lease a car, rather than buy?

Car leasing is a becoming an increasingly popular alternative to buying a car in the UK. During times of financial hardship, leasing a car is a far more attractive option than buying one outright – it allows you to drive a brand new car through affordable monthly payments. These monthly sums are significantly lower than a hire purchase agreement or a personal loan.

Consequently the amount of people opting into car leasing schemes has risen by over 30% during 2012. People are asking more questions, so here answers to the five most popular questions.

1) How does car leasing work?

With a standard car leasing contract you pay a deposit up front, then pay a fixed monthly sum for the duration of the lease. Most leases are between 24 or 60 months long and at the end of the lease the car can simply be returned to the leasing company, meaning that there is none of the inconvenience of having to dispose of the vehicle. Alternatively, if you do not want to part with the vehicle at the end of the lease period, some leases have an option which allows you to take ownership.

2) What are the mileage options?

All lease agreements are subject to a mileage allowance, usually between 10,000 and 50,000 miles per annum.  The higher the mileage allowance, the higher your monthly payment will be. If you exceed the mileage allowance you will be charged for excess mileage at a pre-agreed rate.

3) Are there any other costs to be aware of?

The same as if you purchase a car, you are responsible for insuring the vehicle on a comprehensive basis. CVSL Ltd offer you maintenance packages, but if you do not take this up you are responsible for the maintenance and servicing of the vehicle. Maintenance contracts will typically include all manufacturers scheduled servicing, replacement of all ‘fair wear and tear’ items, including parts and labour, tyres and road side assistance.

4) What else should I be aware of?

All leasing agreements include free delivery and collection to and from any UK mainland address. When the vehicle is collected at the end of the contract it will be inspected in accordance with the The British Vehicle Rental and Leasing Association (BVRLA) 'fair wear and tear' guidelines. Anything which came with the vehicle such as service books, manuals and spare keys must be returned at the end of the lease period.

5) Which company should I lease from?

Ensure that any company that you deal with is a member of a trade organisation such as The British Vehicle Rental and Leasing Association (BVRLA). CVSL Ltd are BVRLA members, ensuring that we adhere to a strict code of conduct, guaranteeing our customers the highest possible levels of service.

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The Benefits of Car Leasing

Over the last 5 years, there has been a well-documented financial crisis across the globe. Banks have tightened down on lending, which has left people having to make the most of every penny they spend.

Buying a brand new car has been quite far down on the agenda for a lot of people.  Not only are new cars expensive to run when it comes to fuel, repairs, MOTs and other related costs, but they also rapidly depreciate in value from pretty much the minute you have the keys in your hand.

Car leasing has become a far more practical choice with those wishing to enjoy all the advantages of a new car, but without the hefty overheads of buying one outright.

What is Car Leasing?

Car leasing is a lot similar to renting a house; whilst you have full-use of the car, someone else is ultimately responsible for the maintenance and preservation of the vehicle. Although you can’t take advantage of the vehicle’s capital value, you do have a number of other advantages.

Drive a brand new car, without the cost!

People can often be put off the price of buying a brand new vehicle, and also the rapid rate the value of the vehicle will fall over the coming months and years.

Car leasing allows people to enjoy driving a top-of-the-range car, without having to stump up the cash upfront and worry about the cost of depreciation. Meaning you can choose from a range of cars that would normally fall outside of your price bracket.

Leasing arrangements also allow people to change their car for a new model quite frequently, which provides customers with the reassurance that they will always be driving a reliable vehicle. With cars become less dependable as they become older, leasing takes away the risk of things going wrong and provides you with added comfort.

Repairs can be covered within the leasing package!

Leasing agreements can provide people with a stylish car, without the need to worry about the cost of repairs or maintenance.

Maintenance is the most imperative option to consider adding to your lease agreement –because the finance company will take away the risk of you have to pay for any high-priced and unintended maintenance costs – you don’t actually own the car, so you are not liable for repairs!

Monthly payments you can afford!

Monthly payments are usually much lower in lease agreements than if you were financing the whole cost of the car. This means less penny pinching, and allows you to invest your money elsewhere without worrying about hefty car payments!

The verdict!

Car leasing works out much cheaper for drivers than buying a brand new vehicle immediately. It is a no-brainer, especially when you compare the cost of buying a new car to the cost of a lease agreement. There is no way that you will find a car of the same quality for the same amount of money!

Lease agreements also carry optional packages that can take away the hassle of being responsible for a car’s continual maintenance, and the cost of repairing wear and tear.

So what are you waiting for? Get that dream car on lease and forget about all the financial headaches that come with buying a new vehicle.