A lot of people are undecided when it comes to either leasing or buying a car, possibly because they don’t know the benefits about leasing a vehicle. We believe here at Hippo Leasing that leasing a vehicle is a fantastic alternative to buying one.
The term ‘leasing’ came from the USA and has only in recent years been adopted and accepted in the UK in the last few years.
Leasing is simply just a long term vehicle rental where you pay a fixed price monthly over a period of time, for between 2-4 years.
We’ve looked at some of the biggest benefits of car leasing that business and personal users find.
No depreciation concerns
They say that as soon as you drive a brand new vehicle out of the showroom you’ll automatically lose thousands, but with a lease car you won’t have to worry about depreciation.
You drive the car for the agreed amount of time and following that you hand back the vehicle without any charges. That is providing it is in generally acceptable condition.
Lower Monthly Payments
We know the cost of a brand new vehicle is more than likely going to seem daunting so choosing to lease either a business or personal vehicle could be more affordable for you.
Paying for a car on a monthly basis spreads out the cost of the vehicle and so makes your budget a lot more manageable.
Not only are monthly payments on car leasing more affordable you can get more for your money as you are not responsible for the whole vehicle and the monthly price takes into consideration a valuation of the vehicle once it is returned.
Low or no deposit
Most lease deals come with the standard one, three or six monthly payments up front as a deposit. At some dealers though you can now opt to take any personal or business car lease you can opt to pay no initial payment. This will of course raise your monthly payments slightly.
Most if not all new cars ask for substantial deposits and even more % to vehicle value is required to get more up market manufacturers’ vehicles.
If you decided you wanted to change your vehicle two or three years (usually 75% of the way into the agreed term) into your lease agreement then you could do, whereas with a new car you are likely to keep that one for the next five years until your finance is completely cleared off.
The majority of businesses will take out a fleet and within the term circumstances will change and the desire for more people carriers or more luxury cars may be needed when originally a fleet of small hatchbacks was the criteria. Leasing allows companies to be flexible and address their needs more regularly than if they opt for a five year finance outright purchase.
With a lot of emphasis being put on HPI checks, car buyers nowadays are rightly a lot wiser to people passing on their vehicles that have outstanding finance on.
Credit problems? No problems!
If are someone who has suffered from bad credit then don’t worry. Don’t let this be a reason for you not to lease a vehicle. There are now many lenders that are available to customers who have had issues with credit in the past and are now looking to rebuild their credit.
Business car leasing is the perfect option for any company looking for either a car or a van. If anything was to happen to your business you won’t have the hassle of selling the vehicle and best of all you’re not affected by market depreciation.
Leasing a business vehicle is a hassle free option where you could save yourself a small fortune.
As long as the vehicle is used just for work purposes, it’s possible for you as a business to claim all the VAT back that’s on your leasing agreement. If the vehicle is only partially used for work and personal capacity, you could end up reclaiming 50% of the VAT back.
In many finance packages it’s possible for you to add on fixed price maintenance and servicing for your vehicle. It’s a lot more reassuring for you knowing this, especially when you clock up the mileage.
For a company and individuals alike, leasing is a fantastic and simple way to get an affordable vehicle or fleet with the opportunity to regularly refresh what you drive.
For us, leasing vehicle beats buying a brand new vehicle hands down. For more business and personal car leasing deals search the internet for Hippo Leasing.