The great thing about car leasing is it’s simplicity.
You’ll have the option to pay a fee upfront - a deposit. It can be zero, just the first payment, or it can be 3 months or 6 months payments, you get to decide. The monthly fee will increase or decrease depending on the size of the upfront fee, but it will all be presented beforehand so you know exactly where you stand and you could pick the right option that suits your needs.
You’ll have to decide whether you'd like to pay an upfront fee. There will be some admin fees during the lease setup. Other than that, you’ll pay a set payment each month that won't change for the duration of the lease, making it really easy to budget month to month.
When you go through the leasing process, you’ll agree to a mileage limit. This is something you decide. As part of the process, the finance company will use this information to estimate the potential resale value of the car, which is integral to processing the lease cost.
When the lease comes to an end, if you’re over this limit, you might be asked to pay an additional fee which will be determined at that time. How do they calculate the lease fee? It’s very simple. The finance company buys the car at a price. They calculate the price of the car when the lease ends, and the difference between the two is the lease cost. For example, if the car costs £20,000 to buy and after 3 years leasing its value is £12,000 then the cost of the lease £8,000. They’ll add their profit onto that, let’s say £1000 for example. That’s a total lease cost of £9,000. They then split that fee over 36 months (3 years) which is a monthly fee of £250.
The only additional price will be the admin fee for setting up the lease, which varies from lease to lease. For more information, give us a call and one of our team will be more than happy to talk you through your options and give you some concrete figures.