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How Does Car Leasing Manchester Work?

You have probably figured out by now that Amber Vehicle Solutions is a car leasing Manchester company – but what is car leasing and how does it work? Let’s take a closer look:

Car leasing is essentially a financial agreement between a vehicle supplier and a customer, which allows the customer to drive their chosen car at an agreed monthly price for a fixed length of time. We understand, however, that some car leasing solutions can seem quite complex to some people and so we have tried to simplify things in this article so that we can explain to you exactly how leasing works.

 

How Car Leasing Works

When you sign up to lease a car, you are signing up to pay monthly payments over the period of time that you have that car in your possession. You may also find that you gave to pay an initial deposit as well – although this is not always the case. At the end of the car lease period, you either return the car, buy it or part exchange it – and this will depend on the type of lease you have.

Firstly, you will agree a contract with the dealer – making sure you are clear on the deposit you are required to make and what your monthly payments will be. You should also examine the terms and conditions as these will include length of the lease, wear and tear guidelines and mileage limit as well. The monthly payments are usually calculated taking the value of the car into account, then length of the lease, the mileage allowance agreed on, and the estimated value of the car at the end of the lease as well.

Car Leasing Costs

One of the main benefits of car leasing is that it allows you to more closely budget your car spending, and you won’t be hit with the blow of a large payment which you would have to fork out if you bought a car outright.

Leasing is therefore a great option for anyone who wants to be able to drive a new car every few years, as it is likely you will be able to drive a better car this way than you could afford to buy for yourself.

However, an issue many car buyers often forget to consider is resale value, as most cars depreciate in value the most during the first three years of ownership. This doesn’t affect you if you lease a car though, as it is the dealer’s responsibility to sell the car at the end of the lease – and not yours.

What happens when the car lease ends?

What happens to your car at the end of the lease depends on the type of your lease:

  • PCP – Under a Personal Car Purchase agreement you will have the option to return the car, part exchange it or keep it (after paying a balloon payment)
 
  • PCH – Under a Personal Car Hire agreement, before the end of your lease you will be contacted by your dealer to arrange for the return of the vehicle.
 

Whichever contract you prefer, you can view all of the latest deals from Amber Vehicle Solutions on our car leasing Stockport page. We offer a huge range of leasing options so you are sure to find something that suits.

 

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Posted on 12th June 2019 at 4:29 PM

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