What is Leasing?
Leasing a car is like leasing – or renting. If you rent a house or flat, you pay a deposit, then you get the use of it for an agreed period during which you pay a set amount each month common by direct debit. Once the contract ends, the property reverts back to the landlord/owner.
And it's the same with car leasing. You pay a deposit – usually equivalent to three to six times the monthly payments you'd make for that make and model of car – and then you pay an agreed amount monthly. At the end of the deal, the car goes back to the finance company. And, just like with a property, you'll need to pay out if you've damaged anything.
How does leasing work?
Car leasing contracts typically run for two to four years. The length of the contract generally depends on you, and how long you want the car for, or how long you want to wait before getting your next brand spanking new car.
Hopefully you'll have an idea of how much you have spare in your budget to spend on the car. So, research is important at this stage, to check that there are leasing deals out there for a car that you can afford.
There are car leases out there that start from £99 per month, so there should be something out there to suit you, whatever your budget.
Where can I get a lease deal?
Online finance brokers
Lease deals can be found from a handful of online brokers, though make sure the one you pick does consumer contracts, as leasing's mostly done by businesses.
Online brokers simply source the car you've chosen, then match you to a leasing company that will buy it. The broker will then deliver it once you've passed the credit check, signed the contracts and made the first payment. You hand it back to the broker once the contract ends.