Simple question. But are you?
While the new car market has been on something of a roller coaster ride this year, one thing has remained constant: the growing popularity of personal leasing.
According to leasing’s regulatory body, the British Vehicle Rental and Leasing Association (BVRLA), personal leasing accounted for 61% of car leases in the first half of 2018. It has more than doubled in five years as a percentage of all cars leased to become the dominant form of leasing – even more than business leasing.
There’s good reason. For many motorists it has become an intelligent car choice.
Rather than choose to buy, motorists are paying a monthly rental to drive a car.
It’s much the same way that you pay a monthly rental for a new phone with a new monthly agreement. It takes away the hassle of owning a car and all that ownership entails – the large down payment, the ongoing high monthly installments until you end up owning the car. Eventually.
With leasing you never own the car. The intelligent part about personal leasing is that you pay monthly rentals for a period of time and over an agreed mileage, before returning the car to the leasing company. The leasing company will then sell the car. So all you are paying for is the cost of the car until it is sold – the difference between its value new and its resale value, along with some interest on the finance. Compare this with paying for the full cost of the car.
The result? Personal leasing is highly affordable thanks to low monthly rentals.
For example, you could lease a supermini, such as the Honda Jazz, from as little as £117.99 per month; a Mercedes-Benz E-Class saloon from £254.99 a month; and a large SUV, such as the Volvo XC90, from £379.99 a month.
There is huge variety in the vehicles Intelligent Car Leasing can offer on a personal lease – just browse the offers on the website. If you need more help, use the ‘help me decide’ page, or give one of our friendly sales executives a call for further information or assistance.
You need to decide how long you wish to lease the car you have fixed on. The usual options are 24, 36 or 48 months.
Then you need to assess your estimated annual mileage, from 5000 miles a year right up to an epic 30,000 miles a year. The time and mileage elements are the basic parameters for a lease.
Following that, you choose an initial rental payment, which is usually three months in advance. But this can be as much as 12 monthly rentals in advance if you really want your monthly outlay to be as low as possible.
And that is you in a brand new lease car for the duration of the contract. Little wonder if it’s that simple that personal leasing is making such an impact.
And when your contract finishes – well, it’s not difficult either. Simply choose another car and another lease period. It’s the intelligent way to drive a car these days.
Categories : Other