Leasing is becoming an increasingly popular method of financing a new vehicle, but the question many people are asking is… “Which is the best value lease for me?”
In this blog post we’ll discuss the different types of leasing, as well as getting the best value for money. We’ll start with an overview of the three typical contract types before giving you some tips on how to keep your monthly payments low. So if you’re already clued up on the technical details, feel free to skip ahead!
Leasing
Leasing is the most straightforward of the three contract types to grasp. Simply choose a vehicle, decide how long you want to keep it for, put a deposit down and drive away. You then look after the vehicle like it’s your own and pay monthly for the benefit of its use. When the leasing period is over the car or van goes back before you start again with a new one. A downside to bear in mind with leasing is the possibility of going over your mileage restriction which is agreed at the start – doing so could prove costly so be sure to check the small print.
Lease Purchase
A variation of leasing is lease purchasing. Everything here is the same, except you will own the vehicle at the end of the lease. This is a great way to finance a new vehicle that you might not be able to pay for in full up front as payments are broken down into smaller, manageable amounts. There is normally a balloon payment at the end of the term to buy the vehicle, but this can be reduced by paying more each month throughout the lease.
Contract Hire
Contract hire is generally more suited to fleet vehicles or those covering particularly high mileages. For a fixed monthly cost, contract hire packages normally include other features that you don’t get with a normal lease, such as servicing and maintenance. The overall concept is still broadly the same though, and you’ll hand the vehicle back for a new one when the contract comes to an end.
How to keep your payments low
1) Don’t be too fussy
By keeping an open mind about vehicle choice, you might just snap up a bargain. Cars and vans often become available at short notice, so if you if you aren’t too fussy about specs and colours you can increase your chances of staying within budget. Otherwise you could end up waiting a long time!
2) Longer leases are more affordable
The longer the contract, the lower the monthly payments. This is because the cost of running the vehicle is spread over a greater period of time. So unless you chance upon a genuinely good deal, short leases should be avoided if you’re aiming to get the maximum value from your motoring.
3) Make a high initial deposit
A larger deposit equals a lower risk in the eyes of the lender. So putting down more at the beginning means that your monthly payments will be further reduced, whichever type of contract you choose.
Armed with this knowledge, it should now be easy for you to browse the web and find the best value lease. Reputable websites like vanleasing.com allow you to generate as many free quotes as you like – making it easy to find and order your next new vehicle.
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