Who Can Lease a Car?
If you lease a car rather than buy it outright you would find it’s a cost effective way to enjoy the car you want for less. The cost of owning a vehicle is now at the highest its ever been, and it’s only going to get higher. With car prices being so high leasing has never been so popular. With terms, mileages and packages to suit most needs leasing can be the perfect solution.
Whilst leasing is very easy to obtain and understand for most, it is not so straight forward for everybody. Leasing is a form of finance and therefore is subject to credit checks and your credit status. So those who are not yet employed or are too young to have built a credit file would not be able to lease. For those with a less than perfect credit record there are specialist companies that offer poor credit leasing but at a cost.
Car leasing, who is it for?
Having access to a car is an important part of modern life. It allows people to travel between locations that may have previously been hard to reach, at their own leisure as well, as there’s no need to rely on public transport. If you decide to lease a new car you also have the added benefit or worry free motoring, safe in the knowledge that you are covered by a full manufacturer warranty.
They can also be used from within a business, whether it be as a company car or as a means of transporting tools between destinations. Here at Lease World we give you the option to choose from personal and business leases, ensuring that you get the contract that best suits you.
When purchasing a car, a main worry can be how much it’ll be worth at the end of the contract due to depreciation. You may have initially wanted to sell it for a profit, but it’s possible to miss out if your vehicle has suffered from higher depreciation than expected.
When you first agree to a lease contract, the overall amount of depreciation that will occur once the contract has finished is estimated. Numerous factors can change this estimation, such as the mileage you’ll be doing. One of the best things about this estimation is that you have a full understanding on how much you will pay per month without worrying about resale values. It doesn’t matter what the vehicle is worth at the end of the lease, its not your risk.
When working in a business, it is a pain having to deal with the maintenance that is essential for a vehicle. One of the main reasons leasing exists is so that people don’t have to deal with as much hassle that you deal with when owning a car fully.
With a full maintenance package you don’t have to worry about anything. If you have a maintenance problem, need a service or replacement tyres, subject to fair wear & tear you are covered.
One of the major benefits a VAT registered business can gain is tax advantages for leasing a car, such as reclaiming a percentage of the VAT of the monthly rental. As long as you can prove that the only use of your vehicle is for business purposes, you can qualify for these tax advantages.
Personal and business leasing are very similar, with a significant difference being that personal lease contracts aren’t able to reclaim a percentage of value added tax.
The advantages to personal leasing are similar to business leasing in that you often pay a much lower monthly amount than you would if you bought the car.
Lower upfront costs
When it comes to costs, you have the luxury of not dealing with as many upfront costs that occur when purchasing a vehicle. The average initial rental is three times the monthly rental, which can also be changed to the equivalent of 6 or 9 monthly rentals.
Something that attracts a lot of people to a lease contract, there are very few obligations you have to deal with. You have to make sure that you pay your monthly rentals at the appropriate time.
Once your contract has come to an end, you can simply return it to us. There’s no need to worry about the selling or haggling aspect which can often put people off. If you want a different vehicle to lease, it’s possibly. Once your current lease contract has finished, simply return the vehicle and then agree to a new lease contract.
Lease World and you
The main thing about leasing a car is that it’s an option which is available for everyone. It has been designed to be affordable and more approachable than buying a car outright. With full maintenance options you can lower the responsibilities that can take up a lot of time and include maintenance, servicing and tyres as part of the leasing package.