What are the pros and cons of leasing a vehicle?

Car leasing is a long term rental, typically between 2-5 years.  You lease your chosen vehicle for an agreed length of time, on an agreed annual mileage allowance, and for a set monthly rental,. At the end of the lease you simply return the vehicle, and start afresh.

Leasing might not be for everyone, the 3 main benefits and risks are listed below.

Pros

1. Lower up-front cost – vehicles are expensive. Buying outright or on a Hire Purchase agreement will use money from your working cashflow.
2. Drive a brand new vehicle every few years, giving greater peace of mind on reliability and potentially lowering carbon footprint, as continued advancement in technology improves vehicle emissions and fuel consumption.
3. Avoid the hassle and potential loss on disposal of the vehicle– let the finance company take the risk on the future value of the vehicle at the end of the agreement.

Cons

• If you terminate your contract early you will be required to pay a termination fee
• If you exceed your agreed contract mileage allowance you will be required to pay an excess mileage charge – we monitor vehicle usage and will discuss with you the increase or reduction in the contracted mileage allowance to avoid excess mileage bills at the lease end
• At the end of your contract you will have to pay for any damages that are not fair wear and tear, and not covered by your insurance policy

If you have any questions call us today to speak to one of our team members – 01908 262 662

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