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Why Is Contract Car Leasing So Popular?

Auto Express recently reported that last year (2018) the sale of new cars in the UK dropped by 6.8% which shows what a roller coaster of a ride new car sales are having at the moment. However, one thing has remained popular – contract car leasing.

In fact, the BVRLA (British Vehicle Rental and Leasing Association) recently published a report which revealed that in the first 6 months of 2018, car leasing personal contract hire rose by 61% - a figure which has more than doubled in five years, and reveals how dominant personal contract hire is as opposed to business leasing. But why?

 

How Does Personal Leasing Work?

First, let’s look at how personal leasing works. One of the first decision you will have to make is how long you want the lease to run for – 24, 36 or 48 months (2,3, or 4 years). Then you need to intelligently assess what your personal mileage will be in a year – as your estimated mileage will form part of your lease contract and you may be charged at the end of the contract if you go over this mileage. Then the last thing you need to think about is the initial payment – it is always wise to put as much as you can down upfront, as this will reduce the monthly costs even further.

 

The Benefit of Personal Leasing

Well, there are lots of good reasons why personal leasing is popular, but the main one is that when you lease a car, you get to pay for it on a monthly basis rather than a lump sum all in one go. Similar to the way that when you get a new phone you pay a monthly amount for it a personal car lease works in the same way – taking away the hassle of actually owning the car and all of the costs that entail!

The smart bit about leasing is that you never actually own the car. Now, some people may say that that isn’t very smart but actually if you look at it closely it is. You pay a monthly payment for the term of the lease and then hand the car back to the leasing company, who then sell it. So, you are basically paying the cost of the car from new until it is resold (with some interest in the finance of course). This will cost you much less still, than actually owning the car.

So, it is no wonder that personal leasing is so popular, so if you want to look at the wide variety of personal contract hire cars that Amber Vehicle Solutions has to offer then please browse all of our offers on the website, or pick up the phone and give us a call.

 

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Posted on 17th January 2019 at 4:17 PM

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