Business, Personal

Time for a new car? Should you Lease or Buy?

Posted on May 19, 2017

Content blog 2

So you are looking into getting a new car but are unsure what to do? The big question is – "Should I Lease or Buy?"

The Challenge

If you're new to the world of vehicle leasing, then this page may help you decide which route is right for you or your business. British people love to have something to show for their money. For example, over 70% of people in the UK own their own home, compared with 40% in Germany and 50% in France. When you lease a vehicle on Contract Hire through your business, or on Personal Contract Hire, you take a vehicle on for a fixed period of time, and at the end of the term you simply hand it back. So, when we're talking to new potential customers about leasing, we often face the challenge about what clients have to show for their hard earned cash.

So Why Lease?

Well, it often comes down to basic mathematics. If you choose to own your own home, you take a risk, but its a calculated one. You're assuming that the value of your home will increase over time, and therefore owning your own home should be an investment.

When it comes to vehicles, unfortunately, the same rule does not apply. In the vast majority of cases, cars and vans depreciate with the average car being worth just a third of its original value after 3 years.

Example

Ford Mondeo 2.0 TDCi Zetec 140 5dr

Cash Price (New)

Value after 3 years

Depreciation

Equivilent Monthly Cost

Typical Lease Cost

£20,505

£7,800

£12,705

£352.92

£284.99 + VAT (£341.99 Inc VAT)

So, when you lease, you are effectively spreading the depreciation cost over the time you have the car. Most importantly, with a Contract Hire agreement you are also not taking any risk on its future value.

Key Benefits

  • Cashflow - No need to tie up your cash in a depreciating asset
  • Low Initial Outlay - normally just 3 months in advance
  • Fixed Cost- Budget Accurately with fixed regular payments
  • Flexible- With Contract Terms from 2 to 5 years and contract mileage allowance of up to 180,000 miles
  • Low Risk- No depreciation risk or hassle on disposal
  • Tax Efficient- 100% Tax Relief on a wide range of Contract Hire Vehicles
  • Hassle Free- Road Tax usually included for the Full Term, and Fixed Cost Vehicle Maintenance an option
  • FREE Essential Accident Assist with every lease
  • VAT Efficient- 100% VAT may be recovered on Commercial Vehicle Leasing and Fixed Cost Maintenance (50% VAT recoverable on car leasing finance payments)

Why Concept Vehicle Leasing?

  • Established, Experienced Leasing Provider with a reputation for impartial advice and Service Excellence
  • All Makes & Models (Cars and Commercials)
  • Direct funding from major Banks and Leasing Companies, assuring you of the Best rates
  • Dedicated Account Management
  • UK Nationwide Service Provision
  • BVRLA Accredited Member