What is car leasing?
Car leasing is a hire agreement whereby you rent a vehicle for a fixed amount of time, and at a predetermined cost.
The monthly payment is calculated by subtracting the car’s residual value (the predicted value of the car at the end of the lease period) from its initial value, and dividing this figure by the number of months in the lease.
What are the benefits of car leasing?
There are several. Perhaps the most appealing is the fact that you can drive a brand-new car every few years.
All vehicles leased at AMG include either 12 months or 3 years’ breakdown recovery too, depending on the manufacturer, and road tax is covered in all lease deals. On a lease of three years or fewer you never have to worry about getting an MOT, either.
Pre-agreed mileage limits mean that you can budget for petrol costs more effectively, and maintenance costs are lower than owning a car because you are driving the car at the start of its life when problems are much less likely to occur. Maintenance packages can be discussed depending on the user’s needs.
For business users who are VAT registered there are also tax implications, and you can reclaim a minimum of 50% of the VAT payable on each contract hire payment. This increases to 100% if the vehicle is used solely for business use.
AMG Autolease have been operating in the car leasing industry sector for over 40 years, and this experience and the resulting close relationships with various financial institutions means we offer some of the best car lease deals in the UK.
What are the different types of car leasing?
There are six main types: business contract hire, finance lease, business contract purchase, lease purchase, personal contract hire, and personal contract purchase.
You can read detailed information about each one here.
Why should I lease rather than buy?
Leasing gives you fewer things to worry about, and lets you drive a new car more often.
You are effectively paying just for the use of the vehicle, rather than taking on the financial risk of depreciation as you would if buying a car.
If you have any other questions about car leasing get in touch and we’ll be happy to help!