Car leasing in challenging times

Ease the squeeze

One thing is certain with all the discombobulation of the past few years. Times have never been more uncertain! We know; we’re geniuses. Caused by the myriad financial headwinds blowing against the British public at the moment. We’re not sure where to even begin; good financial savvy is now crucial for navigating your way forward.

We’re here to talk about car leasing; that’s what we do. We’ve said it before; indeed, contract hire might not be for everyone. But in around six minutes, we can explain why, should you need a new car, we think that now is maybe the right time to lease.

See all our hot leasing deals under £350 Inc Vat Per Month, 8’000 miles per annum allowance, and one rental in advance here.

Headwinds

We won’t prattle on about the headwinds above as really we are all too aware of the squeeze to our finances. But to control the skyrocketing inflation costs we’re witnessing everywhere, the base interest rates that influence our mortgages, credit cards and loan rates have to go up from the record lows we’ve enjoyed up until now. This is unlikely to reverse until the costs come back down.

Meaning that, unless you’re buying a brand-new car in cash (lucky you if you are), the cost to borrow is likely to go up; the same can be said of leasing. The banks that lease cars or provide hire purchases borrow money, too, so everyone is affected.

View our latest leasing special offers here.

Why Car Leasing?

The beauty of leasing, then, is that it provides fixed-cost motoring. It includes things like your manufactures warranty and road tax for the term, helping you budget. And it also shelters you from inflation and locks in your prices for the contract term. Most lenders and manufacturers (although not all, so talk to us before going ahead) will lock your prices in from funding approval, meaning you can secure your deal and order your new car, waiting safely in the knowledge that the prices won’t climb. If they go down, we can re-apply and secure the lower prices too! Double win.

Check out all our car leasing deals here.

Desperate Times = Different measures.

Depreciation is another thing to think about car leasing in times like these. Used car prices have increased recently, meaning depreciation has had less impact. This is because new cars were in such short supply. But as the supply chain fights back after Brexit, Covid and Microchip issues, this will change. In fact, at the time of writing, FVL can offer over 290 models of brand-new cars for a four-week delivery.

Another aspect of depreciation to consider is all the new models hitting the market. Being unproven in the UK typically hampers good residual value. Leasing protects you from worrying about all that; it becomes the bank’s problem. No more trading in, haggling, or even selling online – but if you have a car to sell, get a no-obligation quote from our partners at Motorway. They’re rated excellent and can pay off finance for you too.

View our EV leasing deals.

Easing that squeeze.

No deposit? No problem! As you probably already know, there is no deposit with car leasing. You are not buying anything; it’s an extended car hire but through a contract. So your first payment isn’t a deposit (you won’t get it back); it’s an initial rental. This means, however, that you can tailor the initial rental to suit yourself, and it will directly impact the monthly rentals. The more you put in, up to twelve rentals in advance, the less you pay monthly and vice versa. Just remember that the total cost (all the rentals added together) won’t change. You can even lease some cars with equal monthly rentals, meaning no large initial rental, just 24, 36 or 48 equal monthly rentals (*Credit brokering fee applies, more on this below).

View our one rental in advance here leasing offers here.

Hassle-free motoring at its finest.

So, we have low initial rentals and fixed-cost motoring available on every new car and van model in the UK. Anything else we should know? We haven’t spoken about maintenance. You can add a maintenance element to your rental. So that all of your routine servicing, maintenance (things like brakes, wipers etc.) and premium branded tyre replacements are included with your lease.

This makes budgeting even more manageable as you literally don’t have to put your hand in your pocket for unexpected or expected maintenance or servicing. We can even include breakdown recovery if your warranty doesn’t cover it. And as we’re talking all things money, this is useful for longer contracts where rentals may be cheaper. The reason is that most manufacturers’ warranties run out after year three, and you will have to begin to MOT the car from year three onwards. A maintained agreement would cover you for your MOT tests and any repairs for the whole life of the lease. All you need to do is add fuel and insure your new car. Very nice.

Want to know more? Arrange a callback today.

Not for me, thanks.

It can’t be all sunbeams and candy floss, surely? Can it? No. This is Britain remember? We like mushy peas and rain. We said leasing wouldn’t be for everyone. Firstly, as it requires a credit check, you must have a strong credit rating to get approved. The banks effectively purchase the car and then lease it to you. As they make such a financial commitment, they need to make sure that the person taking on the credit is financially capable of leasing it.

It is a credit product, like many others, and it might not fit your requirements. Some things to note are that it’s a fixed-term contract. Meaning it runs from beginning to end, and you can’t get out or transfer your lease without applying for early termination from the lender. This is typically around 50% of the remaining rentals, but it can vary. That’s the bad news; the good is that it gets smaller as time goes on, it’s quantifiable, and you don’t have to sell a car; it can be done quickly too. As well as time, you are contracted for mileage.

You will have to pay the excess mileage charge if you go over your contracted miles. We will provide this with our quotation; it can vary depending on the car and lender selected. So it pays to be confident in your decision that it is the right thing for you over the term. If you are comfortable understanding the product and affordability (we will go over this as part of any application), it can be a fantastic way to drive the car of your dreams.

Let’s head for the sunshine.

Taking all of this into account is why First Vehicle Leasing has reduced its credit broker fee, to the lowest level in around seven years. There isn’t much we can do, truth be told, we can’t influence the Bank Of England or stop inflation, but with our lender comparison process and new credit brokering figure of £168.00 Inc Vat, we can make it as seamless and as competitive as we possibly can to help you into the car of your dreams. There we go, a little shake-down of what makes FVL a great choice for leasing your next new car. We hope you found this helpful. You can check out our handy leasing guides for more information. Or request a call back for a chat with one of our lovely team for some assistance or to enquire about your new car.