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Will I ever own the car?


No, not with car leasing, you’ll never own the car. In its simplest form, leasing is long-term car hire. 

The biggest advantage is that your monthly payments will be much lower, which makes driving a brand new car so much more affordable. 

When you buy a car on finance, it’s likely you’ll be buying a car using Hire Purchase. This is when you pay your deposit, or part exchange your car. The remaining amount of the car is then split amongst the term of the contract. 

Let me give you an example. The car is worth £18k. You pay a £3k deposit the remaining £15k is then split amongst 36 payments (3-year finance). Which makes the monthly repayments £415 a month. Plus any interest the finance company adds. You will own the car after the 3 years. 

With a car lease, the monthly repayments are much lower. Using the same car as an example, you’re able to see the difference. The car is worth 18k. You pay £1000 initial payment. The car is estimated to be valued at £10k after 3 years (36 months) Which means the lease payments are calculated on £7k ( the difference between the new car price, minus the initial payment and the resale price). When you calculate that number, split across 36 repayments, the number repayment amount is £195 per month. Plus interest payments similar to if you were to buy the car. 

So, car leasing doesn’t allow you to own the car at the end of the lease, but it’s much more affordable, so it really depends on what is more important to you. 

Additionally, car dealers use leasing as a way to sell cars that they have ordered from the car manufacturer but haven’t been able to sell. So if you’re looking for a deal, it’s also the best place to look.

We get you the best deal...

Car dealers have to order a set number of cars from car manufacturers they work with. The more they order, the better deal they get. It happens that they often order more cars than they can actually sell. Very similar to you or I, when they buy the cars from the manufacturers, they use lines of credit from their bank. And as with any other line of credit, they have to pay monthly interest payments until the amount has paid back. So every month they have a car sitting in the showroom that has never been driven. It’s costing them money in interest. 

If they don’t sell it after a couple of months, it’s no longer profitable for them, it’s going to mean they lose money when they sell the car. 

In those situations, the car dealers want to sell the car quickly and will discount it. But they can’t do that in their dealership or their clients won’t want to pay full price anymore, they’ll quickly learn to wait until the car dealer needs to drop prices. 

So they lease the car because they are lowering the price but it’s finance companies that are buying the car, not the general public. It means, when we have special car deals, they are often cheaper than anywhere else in the UK. 

Using the example before, rather than the car being bought for 18k, it’s bought for 17k, the price of the lease is now £6k and your monthly repayments are even lower at £166 per month (plus interest). 

No, you won’t ever own the car, but you’ll get lower monthly repayments. For more specific information about deals available right now, feel free to give our team a call, we’ll be glad to give you an idea of what’s available, and you can decide what’s the best solution for you.