How Leasing Works

Leasing a car lets you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease.

Leasing Explained

A lease is essentially a long-term rental agreement, offering exclusive use of a car or commercial vehicle for a set period at a fixed monthly price.

As a business, this is the most cost efficient method of funding the vehicles as it takes advantage of the tax and vat regulations to reduce the whole life running cost of your vehicles and is supported by the buying power of the finance company, to assist in reducing the cost even further.

The greatest cost of running any new vehicle is depreciation, and many new cars / commercial vehicles will lose more than half their initial value after the first three years of ownership.

Leasing a vehicle lets you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease.

Unlike dealer finance or bank loans you only pay for the depreciation of the vehicle over the term rather than the full capital value.

Rather than pay large deposits you simply pay a small initial amount, usually equivalent to three monthly payments, at the start of the lease.

Then, at the end of the lease period (typically two or three years), you simply hand the car back. The job of selling the car and picking up the tab for depreciation is the responsibility of the lease company.

Benefits of Business Car Leasing

Minimum capital expenditure

Accurate monthly budgeting

Improved cash flow

Fixed interest rates

Rentals can be offset against the businesses profits.

Reduced administration

On-going advice and support

Road Fund Licence provided (vehicle excise duty paid) for duration of contract

Optional maintenance package

Optional breakdown rescue cover

Optional replacement vehicle cover in event of breakdown

Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages

Early termination can be expensive

If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract

You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’

You must have fully comprehensive vehicle insurance

We are Balgores, based in Romford, Essex. Our team of experts have worked in the car leasing sector for decades, building relationships with manufacturers across the globe to provide drivers with incredible leasing offers on any and every car.

03456 43 25 43

Leasing Explained