Pay Less for Car Leasing by Spending More

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When hunting for the cheapest deal on Car Leasing, can drivers end up spending more than they first thought? By spending a little more on a car lease deal, are there savings to be made? Graham McCarthy Investigates.

When you lease a car you’re paying ultimately for the depreciation of that vehicle for the length of time you have it.

When hunting for a Car Leasing deal, car buyers may often make their decision based on low rentals. However, all may not be as it seems: read on and find out how to save.

A car lease is designed to ultimately cover the depreciation of a vehicle for the length of time it’s on contract. That is, if the vehicle is worth £15,000 upon delivery and has an expected future value of £7,000, then a driver can expect to pay the £8,000 difference - plus some finance charges. So, it’s easy to say that the lowest priced vehicle with the highest residual value might be the cheapest to lease. With this in mind, take a low priced Vauxhall Corsa Car Leasing deal at a lease price of £129 per month and a Ford Focus Lease at £159 per month, it seems easy to say that the Vauxhall Corsa might be the cheapest to own for the next three years.

Take some time to consider another factor other than just the cost of the vehicle. Take into account fuel economy; If The Vauxhall Corsa (£129 per month) can offer 38mpg, based on 10,000 miles per annum, fuel would cost around £1750 per year (at today’s prices). That might not seem too bad, however, consider that the Ford Focus (£159 per month) offers 65 mpg, on the same annual mileage, fuel spend drops to around £1015 a year. The mathematically adept will have noticed that the “more expensive” vehicle is looking a lot more attractive now. For those who don’t have a calculator, the Vauxhall Corsa lease will now cost £375 more to run a year than the Ford Focus lease.

Let’s think for a moment that the Vauxhall Corsa probably has a lower level of specification than Ford Focus, customers who are tightening their purse strings could be cutting some corners needlessly. We might be living in an “age of austerity”, but it might be worthwhile looking a little closer before making any decisions about how little to spend on the family run about.

Dig a little deeper and it becomes apparent that all may not be as it seems when you see a cheap car leasing deal on the internet. Do some homework and find out everything there is to know about the fuel economy of the vehicle – seriously considering how you’re going to use it, find out everything about any vehicle excise duty charges and insurance charges to make sure there’s not any nasty surprises later.

More personal and business car leasing customers alike are approaching car leasing brokers and taking advantage of their impartiality and broad knowledge of the market and it’s best offers. It pays to shop around, buyers often find that an internet based brokerage can offer vastly reduced contract hire offers, compared to local dealership’s offerings. Perhaps if everyone spent as much time trawling the internet for vehicles, as is spent looking for a cheap insurance quote, everyone would save a fortune!

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Edward Gillan
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