Please note there has been significant legislation changes to Vehicle Excise Duty (VED) which will affect all vehicles registered 1st April 2017 onwards. What you need to know in five points.Tap here to read more
VED changes and how they affect you
  1. First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emmisions of all vehicles ranging from £0 for zero-emmision right the way up to £2000 for cars with CO2 over 255g/km.
  2. Subsequent years a flat standard rate (SR) of £140 will apply in all subsequent years, except for zero-emissions cars for which the standard rate (SR) will remain £0.
  3. Cars with a list price above £40,000 will attract a supplement of £310 on the standard rate (SR) after the first 12 months for the next 5 years.
  4. After 5 years the added £310 supplement will no longer be paid, reverting back to the standard rate (SR).
  5. All cars registered before 1st April 2017 will remain in the the current VED system, which will not change.
Read more
Call: 0118 920 5130 MON - FRI: 9AM - 6.30PM SAT: 10AM - 5PM
Excellent
Based on 1,870 Reviews
Excellent
Based on 1,870 Reviews
    

What is Car Leasing?

 

Buying vs Leasing

Now more than ever people are looking at lease as a method for driving their next car. It allows you to change your car on a regular basis without losing thousands of pounds and simply by doing this you’re able to benefit from some of the most up-to date technology and emissions on a regular basis. You will also avoid frequent servicing trips or MOTs as the car will always be fresh off the production line. Leasing’s overall cost-effective payment plan is one of the biggest reasons people turn to leasing, coupled with crippling depreciation the fact that should you decide to buy a car - as soon you drive that vehicle off the forecourt it is an asset losing money. With leasing your fixed monthly payments will pay for the use of the vehicle over an agreed term; usually 24, 36 or 48 months. In a standard Contract Hire agreement, you will never own the vehicle and at contract end you simply hand back the keys to the finance company. It really is that easy.

Few people are able to buy a new car outright without some form of financing, but even those that do will find that they will have lost a significant amount of money if the vehicle is changed within a short period of time. Changing the car you drive every 2 or 3 years, as you are able to do with leasing, will result in a massive financial loss. Leasing allows you to change your vehicle at regular intervals without ever suffering from depreciation. 

Many people choose some sort of finance if they’re to buy a new car and while many of these options may be common, that’s not to say they don’t come without any negatives or disadvantages. For example, dealer finance and personal loans can present serious excess costs should you wish to change the car within the first 2 or 3 years – with many of those choosing this form of payment finding the end settlement figure significantly higher than trade-in value creating negative equity and a serious issue for many drivers. Both leasing or contract hire allows you to avoid this and its structured payment plan is regarded as one of the most simplest and cost-effective forms of driving a new car.

Buying vs Car Leasing Example

Its no secret that buying a new car has been the norm for many motorists over the years and its a process that many are familiar with, in contrast leasing’s growing popularity makes it a relatively new method of driving a new car. For this reason its worth comparing the two and seeing the sheer amount of benefits that leasing a vehicle can offer. For instance, if you choose to buy a £20,000 car; after 36 months this may have a resale value of £13,000. If you chose to lease the car, you will pay the £7000 difference over the 36 months (likely including an initial payment followed by a series of monthly payments) If you were to buy this outright you would be faced with the daunting option of paying the £20,00 price upfront plus any additional maintenance and servicing. If you choose a finance plan such as a loan you could face further finance charges over the course of the 36 months and are still left with an asset that has lost money. After the 36 months have elapsed, instead of handing the keys over to the finance company and leasing a new vehicle, you will be forced to take the hit of the depreciation and are left in a financially disastrous cycle if the car is changed regularly.

 

Call us on: 0118 920 5130

 

Monday to Friday: 09:00 to 18:30

Saturday: 10:00 to 17:00

 

   Follow us on Facebook  Follow us on Twitter  Follow us on LinkedIn  Follow us on Google+  Follow us on Instagram

 

Select Car Leasing is a trading style of Select Contracts (UK) Limited and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker not a lender. VAT Registration No 181 8746 74. ICO Registration ZA076253. Company Number 06569098. Select Car Leasing are proud to be a member of the British Vehicle Rental and Leasing Association (BVRLA) No 1846. Registered address: Atlantic House, Imperial Way, Reading, Berkshire, RG2 0TD


Copyright 2016 Select Car Leasing. All Rights Reserved.

Key Partners
Proud Member Of:
Find us on social media

Select Car Leasing is a trading style of Select Contracts (UK) Limited and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker and not a lender. VAT Registration No 181 874674. ICO Registration ZA076253. Company Number 06569098. Select Car Leasing are proud to be a member of the British Vehicle Rental and Leasing Association (BVRLA), No 1846. Registered address: Atlantic House, Imperial Way, Reading, Berkshire, RG2 0TD

© Copyright 2017 Select Contracts UK Limited. All Rights Reserved.

^
Top