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How Car Leasing Works UK

Irrespective of whether you are looking to lease a vehicle for business use or for personal use, there are many leasing schemes available in the market today which let you drive a brand new vehicle without blowing a hole through your pocket.

What exactly is car leasing? Well, it basically involves renting a vehicle instead of the usual purchasing against finance or cash. There will be a contract which is set for a particular period (usually 3 years) and you will have to return the vehicle to the leasing company at the end of this term.

How does it work you wonder? First of all you need to understand that leasing might be similar to financing but isn't exactly the same. Yes, both involve you making a monthly payment against your vehicle. But with leasing, you return the vehicle after the term while with financing you get to keep it. But leasing is significantly cheaper. Contracts in both can be for anything like 2 years, 3 years or even longer. What's more, with leasing you get an opportunity to outright purchase the vehicle after the 3 year period elapses. If you are the type of person that wants a brand new vehicle every couple of years, leasing is the best option for you as you can keep returning your leased vehicle at the end of its term and lease a brand new vehicle to replace it.

Why would you want to lease a vehicle you ask? If I haven't already made it clear enough for you, here is a list of a few of the benefits ofcar lease instead of a purchase:

1. You do not have to pay the entire cost of the car.

2. You can get a new vehicle every few years with minimum effort.

3. You don't need to spend big if you want to buy an expensive car.

4. You own the vehicle during its initial years and by the time things begin to go wrong, you return it.

There are more than 1 million people in the United Kingdom that lease cars every year. One of the main reasons for this is because of the large number of options available to them. Remember though that you will have to make your monthly payments on time or risk losing your car. Also, it will serve you well to check the maintenance packages on offer from the leasing company as well as the mileage restrictions placed on your vehicle before signing the agreement. If you are the type of person that goes on long drives every now and then, you'll need to ensure you don't end up paying extra for additional miles at the end of the term. While car leasing is a cheaper option, if you aren't vigilant, you might end up paying a lot more than you bargained for.

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