Why are all your friends driving nice new cars? The answer is probably because they are using personal contract hire, also known as car leasing. If you are wondering whether this kind of arrangement is right for you, you may have found yourself looking for more information. Here are the answers to five common questions that people ask.
Can I arrange to lease a car if my credit isn’t brilliant?
You will need to apply for finance and the lender will look at your credit score, your current loan commitments and whether you can afford the credit. Why not check your credit score first? If it is not good enough, see whether you can improve it before you apply for finance.
Will I need separate insurance?
You will, and you must make sure that you have insurance before you take delivery of the car; however, there is some good news – your road tax is usually rolled up with the lease payments, which is one less thing to worry about.
Do I need to put down a deposit?
Probably – and if you don’t, the monthly payments will be steeper. Remember that you don’t get the deposit back at the end of the lease; instead, it is used to reduce your monthly payments.
Are there any age limits?
As long as you are over 18 and you have a full licence, you are good to go. Many older people in the region who are struggling with an unreliable car that needs lots of costly repairs are now considering car leasing in Leicester as a cost-effective way to get a modern, reliable car.
What happens when the lease contract is over?
With straightforward car leasing (personal contract hire), you give the hired car back. There are no options to buy, or extra payments, or any other complicated stuff. You will have agreed before you signed the lease how much mileage you wanted. You will get a charge per mile if you go over, but it is usually fairly reasonable; in any case, you can agree this before you sign.
Now you are better informed, why not take a look at what is available from a provider such as https://leasing.totalmotion.co.uk/?
We spend a lot of time in our cars – a new one is a real life enhancer.