Car leasing explained

05 January 2018
 

Car leasing explained

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

Pantheon Leasing Limited are a credit broker and not a funder, we are regulated by the Financial Conduct Authority, registered number 665705. We can introduce you to a limited number of finance companies. All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices listed are based on monthly payments and are correct at time of publication. Note that some contracts may include road tax for the first year only. Breakdown cover is included as per the manufacturer’s warranty, usually for the full term of contract but occasionally for the first year only, please check with the relevant manufacturer as to the length of cover included. Note that although mainland UK delivery is included with the majority of our offers, we do have one or two dealerships that may charge for Scotland deliveries, please check. All Business leasing pricing shown is exclusive of vat, all Personal lease pricing is inclusive of vat. Different terms, mileages and contracts are available upon request. E&OE.

All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.