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Is leasing the right option for me?

Leasing a car in the UK

Sadly, only you can decide this. But, here are the big advantages and disadvantages of leasing. Make sure you can live with the disadvantages. If you can't, then it's likely that leasing isn't for you, and you might want to look at the other finance options.

Advantages of leasing a car in the UK

Pros 

  • Often the lowest upfront & monthly cost for a brand new car (especially upmarket models – paying less every month for your dream car – making it more possible to drive your dream car). 
  • As it’s a new car - cover from the manufacturer's warranty. 
  • In some case road tax and breakdown cover included – sometimes, servicing too. 
  • No worries about how much value your car will lose over the term – it's not your problem – simply hand the car back – no need to fret about loosing value and having to pay into a vehicle in the end [subject to T&C's]. 
  • Simple. You pay monthly then hand your car back to the finance company at the end of the contract. 
  • If you've got your own business, and it's VAT-registered, you can lease a car, keeping it off your balance sheet, deducting the cost from your profit, and reclaim 50% of VAT.

Cons 

  • You won't own the car – but you will also not have the hassle of having to sell it later or pay more on loss of value of the car. 
  • No final funds when the car is finally sold. 
  • Limited mileage. You are restricted by mileage that is agreed - charges range from 3p to 50p per mile – but this is easily remedied by agreeing the mileage upfront and sticking to it. 
  • If you damage the car vehicle you will need to pay for repairs – much like if you sell it privately.

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1st of August 2018