Here is our handy guide to understanding personal car leasing
Buying a car can be one of the biggest expenses of your life, especially if it is a brand new one. It is usually second in line to buying a house and this is where leasing a car becomes a viable option. Personal Contract Hire (Personal Leasing) is where you rent a car for a fixed amount of time, normally a few years (2-4), at a fixed price that you pay monthly. At the end of the agreement, you simply hand the car back to the finance provider.
The benefits of leasing are:
- It includes the Road Fund Licence for the full agreement
- You have the option to include a full maintenance package which provides you with worry-free driving
- You don’t have to worry about selling the car at the end of the contract
- Static monthly payments, just like a mobile phone contract
- Brand new cars at affordable monthly payments
- Manufacturer warranty included on all new cars resulting in repairs on mechanical failures at no cost
- You can terminate the agreement early, you will be provided with a termination figure
- No depreciation risk, the future value sits with the finance provider