Car Lease News Today

You might not think that there is any reason to choose a car lease over a purchase; yet you would really need to re-think that position for a few different reasons. One of the reasons that people choose to lease a vehicle rather than buying that particular vehicle is to get a pretty good idea whether or not it really does fit into their specific lifestyle and will also be something that they can financially afford to do in the long run. Something else that you will want to check out by leasing a car/vehicle is to see whether the more conventional makes of vehicles (Ford, Chevrolet, Honda, Kia, Jeep, etc.) will work out better for you or are some of the more prestigious makes (Aston-Martin, Jaguar or Mercedes among others) the right choice for you.

Another thing that you need to think about is how long you are going to lease that vehicle for. By this we are speaking about the following lengths: 18 months (1.5 years), 24 months (2 years), 36 months (3 years) or 48 months (4 years). Granted, these are shorter than the “standard” amount (60 months/5 years) of time that you would usually be paying for a vehicle purchase. There are so many other things that you will need to take into account before you even decide that you are going to sign that lease; many of these are going to cause you to take a serious financial hit if you are unaware of them.

Tweet This Post

Yes, the title is a variation of William Shakespeare’s famous quote “To be or not to be, that is the question” for a good reason. Many people do not really even think about car leasing until they actually need to lease a car for either business or personal reasons. If you need to lease a car for your personal use, you need to figure out exactly how long you actually want (or need) to have that car as well as how many miles/kilometers you will actually be driving while you have that car during the lease duration. If you are going to be leasing a car for business reasons because you will be traveling all over the UK and possibly the European Union you still need to take the same things into account as you would for a personal car lease.

You might not be able to decide whether or not a car lease is for you just by reading the previous paragraph; or by reading all of the information that is already out there about car leasing. All that can honestly be said about this is that there are so many different things that you will need to make sure that you think about and have thought about before you even consider looking at cars that are for lease. The advantage that you have with a lease is that you actually do not own the vehicle; yet this can also be a problem for you (as well as an advantage).

Tweet This Post

The next question that you are probably asking will be if there are any limitations in the types and makes of vehicles that you will be able to lease. There are so many of you that are asking which makes of cars, trucks, vans and/or SUVs that you are going to be able lease. Are you leasing a vehicle for personal reasons or for business travels? If you are leasing a vehicle for your own personal use you will want to consider some of the more “sedate” makes like Ford, Honda, Chrysler or Chevrolet. You might also choose a Jeep or Toyota so that you can haul all of that cargo that you are likely to be carrying.

Those that need to lease a car/vehicle for their Business needs might want to choose some of the more prestigious makes and models that are out there like Rolls-Royce, Mercedes, Peugeot or a Ferrari to really make an impression that really leaves an impression that will not be forgotten very easily. There are many other makes that are among the more common makes (Land Rover, Cadillac and Jeep for example) that will also make as much of an impression as the more expensive makes do. Those that leasing a vehicle for Business purposes are likely to do so because they need (or want) will need to remember that you have to abide by the same rules that you would if you were leasing that car for personal uses. The option to Purchase that vehicle at the end of the Lease will be offered.

Tweet This Post

An astonishing interview with author Graham Hill about why he thinks car lease is better than taking out a loan. His argument is this; purchase is good when god increase in value, but lease is better when they depreciate in value. At the end of the day, you could be paying more for a bank loan than the car lease agreement, which can help cash flow.

Did you know that the law states you can hand your car back to a car lease provider after 50% of the payments have been made, if for example you run into financial difficulties, this is something you cannot do with a bank loan. This will not affect your credit agreement.

You can also hand the car back if the value if the vehicle falls below the agreed value on the agreement. You can sue the lender as well as the car dealer, something you cannot do with finance only.
Graham goes on to state that he believes you can also get a better HP deal if you shop around and negotiate, as car dealers often put money they make from the car back into the deal. This was an interview on radio 4’s “MoneyBox” programme, of which you can hear below.

Tweet This Post

If you are self employed or own your own business you can set your car lease payments against your tax return, providing you use the vehicle as part of your business. We are not tax specialists so you will need to research this more, but in certain cases, car lease could be the right business solution for you. Conditions could included the mileage you do for you business against your private mileage and if you get one of the new eco models that do a high mileage to the gallon you could find that you petrol costs reduces also.

At the end of the day, the choice between buying and leasing has to do with the total cost of the vehicle at the end of the lease term and what could be used with the capital that would have been usually used to buy a vehicle. We have been trying to find a video that explains the UK tax advantages or not as the case may be, but could only find this USA version. It may not be 100% applicable, but it may have useful information to research.

Tweet This Post

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Tweet This Post