Car Leasing Options

A car lease is a long-term rental agreement; unlike buying a car outright or on finance, you don’t own the vehicle at any point. There are many benefits to this type of arrangement.

You’ll usually pay a larger initial payment on a brand new car that acts like a deposit (but is usually not as high as on finance deals), then a much smaller monthly payment over a set period. At the end of the lease, you don’t have to worry about having to sell a car that has reduced in value, you just hand it back to the dealer. This gives you the freedom to easily change or upgrade cars every few years without any baggage, or simply walk away without arranging a new deal.

Another benefit of car leasing is that if something goes wrong with the vehicle, it will usually be covered by warranty and you can take it to the garage for repairs at no extra cost. You will, however, need to take out fully comprehensive car insurance on your leased car.

Personal Contract Hire (PCH) is a long-term rental agreement where you pay an upfront amount followed by a series of monthly payments over a fixed period for the lease of the vehicle. The car is returned at the end of the contract.

Like PCH, Personal Contract Purchase (PCP) involves paying a larger initial sum followed by regular monthly payments. However, with PCP, you have the option to make a ‘balloon’ payment and purchase the vehicle outright.