So, you’re in the market for a new car, but you’re not too sure which purchase method is the best for you? It’s a tough decision to make and not one that you should take lightly; you’re probably going to be putting a large sum of money towards this car and you’ll be using it almost daily, so making the right choice is really important. If you’re a fan of being able to keep things fresh and updated, then leasing may just be the perfect option for you. If you’re looking for affordable car leasing deals on the hottest cars on the market, head over to Vavoom, a specialist leasing company based in the UK – their range of vehicles is incredibly comprehensive and there are leasing deals to suit everyone, both in terms of term length and monthly price!
What is car leasing?
Car leasing, or Personal Contract Hire (PCH), is a type of car finance deal that gives customers the option to spread the cost of their car over a set number of months with no obligation to keep or purchase the car at the end of the contract. These types of finance are often the cheapest on the market in terms of monthly price, but the downside is that you will not be the owner of the car and you won’t keep the car at the end of the payment plan. Whilst for some this is seen as a downside, for others, it is far from that; the freedom to simply return the car at the end of the contract and replace it with a new or upgraded model ensures that you’ve always got a new and reliable set of wheels that refreshes every two to three years!
In general, there will be a few stipulations that you’ll have to adhere to in order to avoid penalty charges or additional fees at the end of your set term. The main ones here are the agreed mileage and the condition of the car, as the car is likely to be sold off as used after your term is over, so the dealer needs to be able ot ensure that it will be in a good state for sale at that time. To do this, a mileage limit will be agreed and this may impact your monthly cost – the more use you expect to get out of the car, the higher your payments will probably be, but as long as you hand back the car in good condition (general wear and tear cannot be held against you here, don’t worry!), everything should be fine. If you do exceed your mileage, you may be asked to pay a fee per mile, so you’ll want to research this and check with your dealer before entering the agreement.
If both of these things are fine when you hand your car back to the dealership, you should be able to simply hand over the keys and get the paperwork started on a new lease deal with no end of contract payment at all – it really is that simple!