Leasing allows you to drive a new car every few years, with relatively low monthly payments and no worries about the car’s resale value.
So you might hear yourself asking, how does car leasing work?
Leasing a car is effectively long-term rental – you pay a fixed monthly fee to use the car for an agreed time period and number of miles. Under a PCH agreement, you never own the vehicle and you have to hand it back at the end of the term. With a PCP agreement, you have the option to buy the vehicle at the end of the term in exchange for a balloon payment. With PCP you also need to pay a deposit and with PCH you usually have to pay 3-9 months’ rental in advance.
If you decide leasing a car is your best option, here are the main points to consider when choosing between personal contract hire and personal contract purchase.
1)Non-fuel running costs: with PCH your road tax is included each year and you can often choose a maintenance package to cover the costs of any servicing. With PCP an optional maintenance package is sometimes available. 2)Monthly payments: these are generally lower for PCH than for PCP. The monthly payments for PCH also tend to be lower than for a personal car loan.
3)Freedom to change supplier at the end of the contract: with PCH you’re free to choose whether to start leasing a new car from the same company or shop around for a better deal elsewhere. Whereas with PCP you might have to stay with the same dealer to be able to use any remaining equity in your car as a deposit for a new car through PCP.
4)Worries about the car’s future: with PCH you don’t have to worry about depreciating value, warranty expiry, or selling it on – this is the leasing company’s concern
PCH is on the rise in the UK and is becoming more and more common as a finance option. It allows great flexibility for the customer in terms of payments and is very competitive.
This is why Orbit Leasing is here to help you with your next car, we search the market, we compare the quotes and we do all the work for you. We ensure we give you the Best Deal!
So it's now the time to check out www.orbitleasing.co.uk and see what savings we can get for you!
Address:The Rise, 57 Featherwood Avenue, Newcastle Upon Tyne, England, NE156BW
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T: 0191 338 97 53
57 Featherwood Avenue
Newcastle Upon Tyne
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