Business Car Lease Agreements

							We are often asked why personal leasing deals are becoming so popular. This short guide
explains some of the reasons why leasing makes sense and some of the common pitfalls.
Just as there are good and bad car dealers there are good and bad lease providers the trick
is to consider every option, don’t be rushed or hurried into making a decision and ask the
right questions.

Get it right and enjoy your car.



Reasons why personal leasing makes sense.
   1. The biggest single cost associated with buying a new car is its depreciation and it’s
      certainly the biggest component of your lease rental. Leasing companies spend a
      fortune trying to predict car values two, three and four years into the future and
      they often get them seriously wrong. Hence the big advantage of personal leasing is
      the protection from falling and usually erratic second hand values.
   2. Leasing companies can obtain discounts on cars that are far in excess of anything a
      retail buyer could ever hope to achieve.
   3. The leasing company can get tax and VAT benefits from owning the car; this is then
      used to help make the lease rentals more competitive for the customer.
   4. If you take a maintenance contract with your agreement again the leasing company
      has tremendous purchasing power which can be passed onto the user.
   5. If you use your own car for business use, fixed costs can mean no nasty financial
      surprises.



Common personal leasing pitfalls.
   1. Look at the total you will pay not just the monthly rental. Have you noticed how little
      information is given with some leasing agreements? As it’s a lease the usual APR and
      advertising rules usually don’t apply so be careful. Find out exactly what you will pay
      in total during the life of the agreement and be vigilant for hidden set up fees etc.
   2. Be as accurate as possible with your anticipated mileage as this heavily influences
      the rental. Do less miles and you have paid for depreciation that you didn’t use. Do
      over the contract mileage and you will be charged an excess mileage rate. If you
      think you may go over contract mileage make sure you know what this charge will
      be.
   3. Be sure of fair wear and tear terms as the lease provider will expect his car back in a
      reasonable condition. Ask them for a fair wear and tear guide, if they hesitate go
      elsewhere.
   4. Don’t be talked into special deals you don’t want as unscrupulous companies will
      often offer amazing deals that don’t exist just to draw you in. Don’t accept promises
      that something else is better value until you have had a chance to consider it
      thoroughly. A good lease provider wants you to be happy, recommend his services
      and keep coming back.
   5. Ask about settlement costs as the unexpected can happen and lease providers have
      differing ways of calculating termination charges, make sure you understand how
      these work.
   6. Remember at the end of the agreement you hand the car back, its not and never can
      be yours.



David Rawlings

Business Car Finance Ltd

07768 382 522

01252 722 051

Registered in England Number 6615262

Reducing costs - increasing benefits

www.BusinessCarFinanceLtd.co.uk