With leasing or contract hire as it’s often known, you basically rent a brand-new car for 12 months to five years, pay a fixed monthly sum and at the end of the term hand the car back or exchange it for another.
There are lots of fancy acronyms associated with leasing such as PCH, PCP, BCH but they all operate under a similar umbrella.
In a nutshell the P stands for personal lease and the B stands for business, meaning if you’re a business owner you can put a car through your books and claim back the VAT.
As a leasing broker we are slightly biased but there are some fantastic reasons you should lease your next car.
Here are our top three:
FIXED MONTHLY COSTS
Road tax is included in a lease quote, but you can also opt for maintenance, so tyres, servicing and breakdown cover can be included in the monthly price.
After you’ve paid an initial rental which is usually equivalent to three, six or nine months your monthly payment, you’re left with a monthly sum to pay for the duration of the lease.
This enables you to budget your monthly expenditure and provides hassle free motoring.
A NEW CAR EVERY FEW YEARS
Once your lease has finished you can hand the car back and choose a brand new one to drive away in.
We offer free collection and delivery of vehicles to and from your home, so you don’t even have to return the vehicle to a showroom.
Having the flexibility to drive a new car every few years suits a lot of people and using a broker such as V4B you’re not tied to one manufacturer.
You can hand a BMW back and drive away in an Audi!
Manufacturers calculate the monthly lease price by working out how much the vehicle will depreciate over the term of the lease, factoring it into the monthly cost.
With leasing you don’t have to worry about how much the vehicle will be worth when you hand it back. Unlike outright purchase where you’re unlikely to know what the model will sell for until the time comes.
We’re kind of glass half full when it comes to leasing but there are some points which you do need to be aware of:
•Fair Wear and Tear – Leasing companies expect you to hand the vehicle back in good condition. There are allowances for minor issues, but extra fees will apply if there is damage to the vehicle.
•At the start of the lease you calculate the mileage you’ll drive in a year. If you exceed the allowance, you’ll be penalised. The fee is usually around 10p per mile but there’s a straightforward way to avoid the charges – don’t go over your mileage allowance!
•You never officially ‘own’ the vehicle it’s basically a long-term rental.
Visit www.v4b.co.uk for our latest leasing deals to suit every budget.
* 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.
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Wrexham Industrial Estate
V4B LTD are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 669956
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