Car leasing is an ideal and cost effective way of owning a new car every 2 or 3 years, without the risk of negative equity.
At the start of the contract the customer will pay an initial payment which is normally the equivalent to either 3, 6 or 9 monthly rentals. As all leases have a set monthly payment for the lease term, you know what you're paying from the outset and as the finance company take the car back at the end of the lease period, this totally eradicates the risk of negative equity for the consumer and also eliminates the hassle of having to sell it.
The majority of cars come with road tax built in for the contract duration and don't need a MOT until they are 3 years old, therefore leaving the customer to get on with their busy lifestyle. Cars under 3 years old tend to require minimum management and with an agreed set monthly payment for the lease term you’re given budget control throughout.
Some customers shy away from leasing as they never own the car, however if you compare it to buying a car with finance, realistically the finance company own the car until the final payment is made anyway. Therefore unless you pay your car off in full there is very little difference as most people choose to part exchange their car before the purchase finance contract has ended anyway.
You or your company must comprehensively insure the vehicle for the duration of the contract. Most insurance companies are familiar with leasing and therefore should not be a problem obtaining.
For more information please see the leasing information page on our website here