The process of purchasing a vehicle can be laden with various challenges, first and foremost of which is where you will get the high deposit you need. But along with this, you may also have to secure a loan or deal, unless you have the finances or cash to pay for it outright, and you will have to contend with the vehicle’s depreciation after a few years. Additionally, you are limited by your budget as well – you may only be able to afford a basic or standard model and not the luxury vehicle you have been eyeing. There is a solution, however: vehicle leasing. Vehicle leasing agreements have become particularly in-demand in recent years, and there are plenty of reasons why. It’s cheaper compared to buying a vehicle, and it also comes with no interest compared to other deals such as PCPs.
what can you really expect with a vehicle leasing agreement? Let’s find out.
1. A simple and straightforward process
The thing with vehicle leasing or contract hire agreements is that it’s a much simpler and more straightforward process compared to other deals like purchasing a vehicle or going for a hire purchase or a PCP arrangement. All you have to do, essentially, is choose your preferred vehicle, request a quote, apply for financing if necessary, and then sign the agreement. You then just have to decide when you would like your vehicle delivered. Contracts can be fixed in a little more than a week, depending on where you lease from, so you don’t have to wait too long to drive around in your brand new vehicle.
Another aspect that makes contract hire and leasing an ideal arrangement is that it often comes with fixed pricing. Purchasing a vehicle will more than likely be a hefty investment, which is why it makes better sense to go for a deal that is affordable and has fixed monthly payments. With vehicle leasing, the price is agreed upon from the beginning, and you don’t have to deal with any grey areas on equity or annual mileage. Other deals, such as personal contract purchase deals, often include an equity promise at the end of the agreement, and this promise may materialize, but it may not. And, your monthly payments will not be likely to change during the duration of the entire contract, so you will have an easier time managing your budget.
The avoidance of any extra expenses
When you are driving a new vehicle around, it is almost guaranteed that you don’t have to contend with vehicle breakdowns or repairs. New vehicles tend to have fewer issues in the first place, but not only this – with vehicle leasing or contract hire, any issues or problems would also be covered by the vehicle’s warranty. Additionally, if you opt for a vehicle lease with maintenance, your vehicle will be covered for repairs, routine servicing, and perhaps even high-quality tires. Other options can provide you with breakdown cover and glass protection as well as access to a temporary vehicle in case your vehicle can’t be driven for a time. With new vehicles, MOTs are not a requirement, so you can avoid this additional expense, and often, road tax is included in contracts as well.