Leasing has two major advantages, and if they are important to you, these are the reasons you should look at leasing a car.
The first is that leasing often has the best deals so becomes more affordable. But also, it's very simple and straightforward, one monthly repayment each month makes it easy to budget for.
You get better deals - When you buy a car from the manufacturer, through a car dealer, it’s going to be the same price whether you buy it outright, or whether you lease the car through. More or less. But the big difference is, with leasing you don’t actually pay for the value of the car, just the price the car will depreciate in value over the lease period.
So if the car is bought at £10000 and after the lease, it’s worth £6000, the car will have depreciated in value to the sum of £4000, That’s how much a lease will cost you. Plus a little interest on top. So you get the better deals when comparing leasing and direct car sales.
But there is something called PCP, which is very similar to leasing. You only pay the depreciation of the car and you get the option of buying the car after the lease (which leasing doesn't offer). But, leasing still has one advantage over the PCP model.
When a car dealer, which normally offers PCP as a finance option, can’t sell a car that is sitting on their forecourt, they give it to us at Yes Lease to lease, at a discounted price for them. So often, when you lease, the car is actually cheaper than if you were to use PCP at a car dealer.
For example, the car dealer wants to sell the car at £10,000. But they can’t find a buyer, so they let us lease it. The finance buys the car at £9,000 (not £10,000 because of the car dealer discounts it to make it more attractive ) and after the lease, it’s still worth £6000 but the actual lease has cost £3,000 not £4,000 (like in the first example) so you’re monthly payments are going to be cheaper too.
Car dealers have to guarantee how many cars they are going to buy from the car manufacturers. They sign a contract. They'll buy X number of cars, and the car manufacturer gives them a discount. But the car dealers, just like you or I, buy the cars on credit, so not only do they have to buy the cars, they also end up paying interest each month, which means at some point, if they don’t sell the car it’s going to cost them money, not make them profit. And of course, they try their best to sell the cars but when they can’t they give those cars to us at a discount and we lease them. That’s why we have the best deals. We help get car dealers out of sticky situations and give people great prices on leasing.
Plus it’s really simple and straightforward. You only ever pay one monthly fee. No MOTs (because it’s a new car), no car tax (it's included in the price), national breakdown cover. All you have to do is drive the car, keep it in reasonably good condition, and stick to your mileage limit. Nice and simple. And very easy to budget for, especially with one of our zero deposit deals. The first step is to speak to one of our team who will help you explore current leasing deals.