What Car Leasing
As well as the traditional methods of purchasing a car there is an option that is becoming increasingly popular, car leasing.
This method can make it more affordable to obtain a new car. You only pay for the amount the car is estimated to depreciate during the term of your contract.
You then simply hand the car back with no obligations.
The benefits of a car leasing agreement is minimum capital expenditure, meaning you don’t have to outlay large sums of money at the initial purchase stage. The make and model of vehicles available are usually quite extensive, especially with us here at Coast2Coast Cars. This means you could afford the car of your dreams when you originally thought it was too much for your budget.
A leasing contract is often considered a cheap way to drive a new car. You simply agree a period for which you own the car and pay fixed monthly payments. This is known as your lease period. You can purchase most of the varied vehicle styles from us including people carriers, coupes, hatchbacks, estates, 4×4’s and saloons, even sports cars.
Where to start?
As one of the top car leasing specialists here in the UK, we would certainly recommend that you browse through What Car magazine or its website to get a feel for the leasing market and what deals they are advertising.
Car magazine has been around for a long time. It was first published in 1973 and launched its website in 1996. In the ensuing years, it has become a trusted source of information for the car-buying public, and it has used its popularity to venture into the car leasing market, listing a number of leasing deals which they review from time to time.
What Car Leasing is a good source of basic information, but if you are one of the people who prefer to lease a car rather than buying outright, you may prefer a more personalised service from an expert company like us.
How can we help?
Coast2Coast Cars were established in 1999 and will always be a family run business. We have full knowledge of all the brands we offer and can advise you on specific issues concerning the vehicle of your choice. We welcome both private and business customers.
View our latest deals and offers online, most are brand new cars, and new offers are being added to our database daily – so we always have an offer to suit all tastes and budgets.
We have a full range of car leasing offers online, just select the make/range of your vehicle, the term of rental and your budget and we can instantly show you the prices. Some vehicles are direct from the factory so can be built to a spec to suit you, built to your personal ideal.
The place to start with us is in the Hot Leasing Deals area found at the top of any page on our website, where you will be taken through our Finance Offers page which includes a series of dropdown questions. Your result will show a number of typical leasing deals, but this will be the tip of the iceberg in terms of the variety of lease propositions that are available.
If you look toward the bottom of the lease deals page, you will see a sorting tool. You can use this to call up a whole range of lease offers targeted at various types of car you could be interested in. The list is extensive; far greater than that available on What Car Leasing.
Another drawback with What Car Leasing is the lack of interaction, although this can be forgiven as the data that is provided is simply to illustrate specific deals. With our leasing, however, you have the option to talk to a real person; a person with in-depth knowledge of all the cars we handle, and the types of deals on offer.
Rest assured, our quote system includes all the information you need to make an informed decision on car leasing.
Best deals on the web
Since starting out in 1999, we have built an enviable reputation for being able to provide the best deals on the web for your new car, and this applies to purchase or lease orders.
We don’t get involved at all in matters of finance. Our job is simply to track down the cheapest deals for the car of your choice, and this is a service that is totally free of charge to you, the buyer.
Once we’ve found great deals, we pass your contact details to the dealers we’ve selected from our broad portfolio of the franchise in the UK car, and they will send you the quotations directly.
You can discuss any finance or leasing options you prefer with the dealer, who will contact their leasing companies, but we are always here in the background waiting to help or offer advice if needed.
Time to taking action? Talk to us
We suggest you use What Car Leasing to give you an idea of the lease deals they have on their website or in their magazine. That’s why they are there to provide you with some basic information. But when it comes to going further and getting any quotations etc, you will be better served by taking us up on the expert, personal service we provide here.
Further benefits to leasing
The benefits of purchasing a car via this method can be financial foremost. It’s cheaper to drive a new car this way than by the more traditional methods such as car loan or car finance. You could get access to a higher spec vehicle than you normally would.
Then there are the ongoing costs of vehicle ownership. Most car leasing packages include car road tax and MOT’s as standard, plus any ongoing wear and tear maintenance. Any issues or repairs from normal everyday use are taken care of.
We can offer our services to business and personal customers. Business owners speak to us today on how we can supply your company with car fleets and your employees an extra work benefit. Private customers see how much money we can save you when you are looking to purchase a new car.
Coast2Coast Cars can help you find the best car leasing deal on the web today, enabling you to afford that new car, speak to us today and see how we can help, one of our specialist advisors within our family-run business will be able to answer all your questions and advise on the process.
What Car Leasing is committed to finding you the best possible vehicle leasing deal, tailored specifically to meet your needs. And so are we at Coast2Coast, whether you are looking for a business or personal lease, there will be offers available to your area that will help you find the best lease to fit your requirements. Here we explain the difference between various leases:
Business Contract Hire (BCH)
Business Contract Hire is the method that businesses can finance their vehicles with a minimum down payment and an agreed mileage for the contract. The minimum payment on BCH is normally 3 initial payments in advance however this can be as low as ¬£99 or as high as 9 payments upfront depending on the deal taken.
Deals are normally calculated over a contract length of 2 or 3-year period, with a mileage allowance agreed in advance, the minimum is normally 10,000 miles per annum and the maximum is normally 40,000 per annum. Annual mileage over and above the agreed amount is charged at an excess mileage rate, billed at the end of the contract.
BCH is subject to VAT of which 50% can be reclaimed often called blocked VAT. At the end of the agreed period the car is returned to the finance company, with any damage being repaired prior to return or additional charges will be occurred.
Personal Contract Hire (PCH)
Personal Car Leases are becoming an increasingly popular method of running a car. Like a long term rental agreement, you pay a monthly fee to use a car for a fixed period and mileage and at the end you simply hand back the car to the leasing company.
Personal Contract Hire is very similar to Business Contract Hire except for being able to reclaim the blocked VAT. PCH prices should always be displayed including VAT.
The deals on PCH work along with the same format as BCH with a 3 initial payments upfront format then 23(2yrs) or 35(3yrs) payments over the remaining term. Mileage is again agreed prior to the contract start with the same minimum and maximum as BCH, with the same excess mileage charges etc.
Personal Contract Hire denotes that you must return the car back to the finance company at the end of the agreed contract. As with BCH, any damage must be repaired or will be charged in addition to the contract. There’s no option to buy the car at the end of the contract.
- Drive a brand new car every two or three years without worrying about it depreciating, running out of warranty, or how you’ll sell it on because you hand it back.
- Lower monthly bills than you’d pay if buying the car as road tax is usually included and no surprises as payments are fixed and can include a maintenance package to help you budget.
- There’s no option to buy the car at the end of the contract.
- Exceeding the mileage limits you’ve agreed can be very expensive.
Personal Contract Purchase (PCP)
If the thought of handing back the car at the end of a lease rankles, a PCP offers you the option to buy it. You’ll pay a deposit, followed by low monthly payments for the remainder of the contract. A minimum guaranteed future value (MGFV) is also calculated, also known as a balloon payment, this is the amount you’ll have to pay to take ownership of the car at the end of the lease.
Alternatively, you can part-exchange the car for a new model. If it’s worth more than the MGFV, you get the higher amount as a deposit on the next car, if it’s worthless, you still get the MGFV. The third option is to simply hand the car back to the leasing company. agreements can include maintenance of the car.
PCP is having your cake and eating it: drive a more expensive car than you would buy outright and decide later whether to keep it or hand it back.
- Fixed monthly costs make budgeting easier, requires only a small deposit and lower monthly payments than if you’d bought the car, giving you access to more prestigious models.
- Flexibility as the balloon payment allows you to defer payments and can be refinanced at the end of the agreement.
- You avoid the risk of ending up in negative equity with your car worth less than the repayments outstanding.
- As a method of buying it will work out more expensive than a hire purchase (HP) agreement.
- You’ll need comprehensive insurance because you don’t own the car until the end of the contract. Exceeding agreed mileage limits will incur extra costs.
Hire purchase (HP)
Hire purchase (HP) is a simple way to finance a new car. You pay a deposit followed by monthly payments while you use the car. Only when the full cost has been met do you take ownership. The cost is based on the price of the car, the size of your deposit and the number of instalments. HP finance and personal loans repay the loan in the same way.
You’ll be driving the car of your dreams before you can afford it – just make sure you get a good deal by shopping around, comparing the APR and total amount you’ll have to repay.
- You’ll drive a car you couldn’t afford to buy outright, knowing that once you’ve met all the payments you’ll own it.
- The loan is secured against the car which could make it easier to get the finance and at a reasonable interest rate.
- Overall, you’ll pay less to own the car than with other forms of finance, but monthly payments will be higher.
- Until you’ve paid off the loan you can’t sell the car without written permission from the creditor, and if you fall behind with payments the creditor can repossess the car.
- Interest rates can be high, depending on your credit rating. be sure to negotiate the best rate and shop around using the APR to compare deals.
- There are no added fees to pay, so once you have paid your instalments in full you take ownership of the car without any final balloon payment