why should I lease my car rather than use a traditional loan to buy it?
Manchester, UK (PRWEB) June 21, 2007
Car Leasing is on the rise in the UK. It is being seen more and more as a viable, tax efficient and cheaper way of getting into a vehicle than car loans. "The 7 Secrets to Successful Car Leasing UK" is a guide from car leasing experts, my-CarLeasing.com, that outlines the 7 most common questions raised about car leasing and provide the answers for both businesses and private individuals
1. Why should I consider leasing my car instead of buying it outright?
When people ask this question, they actually mean "why should I lease my car rather than use a traditional loan to buy it?" This is because very few people will actually pay cash for their car; they will usually pay a deposit and borrow the remainder from either the bank or a finance company. The key comparison then is "lease versus buy" and the answer to this varies on whether you are a private individual or a businesses. We give the answers.
2. What happens if I want to send the car back early?
Although most people intend to keep their car for the full term of the lease there can be occasions when you wish to terminate it early. For example; if the car has been stolen or written off in an accident. Alternatively you may just decide that you wish to change your car before the end of the lease.
The good news is that all leasing companies will allow you to terminate your lease early. However a car lease is effectively a fixed term finance agreement which means that is designed to run for a given period of time. Commonly this is either 2, 3 or 4 years
We explain how the "percentage of remaining rentals" works.
3. What do I do when my car needs servicing?
One of the key advantages of leasing a car is that you can add a variety of services to your contract. The most common one that can be added is a maintenance package. If you are doing more than 15,000 miles a year it can be a benefit to include maintenance within your lease. We explain why you should always read the small print.
4. Why does the leasing company need to know how many miles I do?
Now, here is one of the major benefits of leasing a car. If the car turns out to be worth less than the estimated value even though the car has done the correct number of miles and the lease has ended on the contract end date, then the leasing company absorbs this loss and not you. We explain it fully and why your mileage is important.
5. What happens if I do more miles in a year than I expected to do?
Leasing companies will always quote an "excess mileage charge" when they provide you with a quotation. This is a pence per mile (PPM) figure and is charged for each mile over the contracted number of miles. We explain why and how.
6. I've heard some horror stories about charges for damage when I return the car at the end of the lease?
In the old days, some unscrupulous leasing companies would give customers huge bills at the end of the lease based on supposed damage to the car. There were horror stories about customers being charged for complete re-sprays because their car had stone chippings on the bonnet.
Those days are long gone, and we explain why.
7. Can I buy the car when the lease comes to an end?
The simple answer to this question is yes, but the method changes depending on the type of lease you have and whether you are a business or a private individual.
The 7 Secrets to Successful Car Leasing explains this fully.