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.