If you’re thinking of buying a new car or driving away a new model under a car lease or contract hire agreement, now could be the perfect time. That’s the view of a leading newspaper which believes the ‘rock bottom forecourt deals’ mean that consumers should ‘seize the opportunity to cash in’ on low cost car finance.
The Daily Express has highlighted the current low cost car lease deals available to car buyers but has warned motorists to make sure they understand the deal before they sign on the dotted line in car market. We look at some of the deals currently available and your choices for buying or leasing a new car.
There has ‘never been a better time to buy a new car’
With cut price car leasing deals available across the UK, Ian Crowder from the AA believes that it is currently a buyer’s market. He told the Express: “With deals done on the forecourt, everything is negotiable. This includes not only the price and the finance, but also the trade-in of your existing car, upgrades and extras.
“There has perhaps never been a better time to buy a car. The key is to do your homework and empower yourself before you start the buying process.”
However, the choice of different types of car lease and contract hire agreements can be confusing. So, it’s important that you understand exactly what it is that you’re agreeing to.
“Many car dealers, brokers and car supermarkets offer finance packages,” says Andrew Hagger from MoneyComms. “Some are straightforward loans, but others are PCP deals that need a greater level of understanding.
“Vehicle finance packages can be good earners for car dealers but are often confusing for buyers.”
To help you work out which type of car leasing plan is right for you, here’s our guide to three of the most popular options.
1. Car leasing
Under a car lease agreement you effectively ‘rent’ the car from a car leasing company for an agreed period (typically two to four years). Your monthly payments will be determined by the value of the car, your anticipated mileage over the lease period and the deposit you put down.
This is a great way of driving a new car without the hassle of having to sell it when you want to upgrade. At the end of the car lease agreement you simply hand the car back.
2. Personal contract hire
Personal contract hire is a type of car lease agreement which gives you the peace of mind of fixed monthly payments.
Here, you put down a small deposit (typically around three months payments) and pay a fixed sum for the agreed contract hire term. And, at the end of the agreement, you simply hand the car back.
Personal contract hire often includes additional benefits such as road tax and servicing included as part of your monthly repayment.
3. Hire purchase
Hire purchase gives you the option of owning your car when you have made your payments. You put down a deposit and then pay a fixed monthly payment for an agreed term. Then, at the end of the term, the car belongs to you.
This type of financing is useful if you want to own the car at the end of the term.
Make sure you find the right finance for you
More and more people are using a car lease or contract hire agreement to drive away a new car. As the Daily Express says, this is not surprising considering the ‘great car finance deals available’.
Kevin Mountford from a leading internet comparison site agrees. He concludes: “Choosing a finance deal through a dealer may appear to be good value, as many are offering a range of benefits at low rates.”
Sherwood Garage provides people in search of Car Dealer Glasgow with the best selection they can choose from. For years now, Sherwood Garage have delivered the exceptional service of delivering admirable types of cars to our clients’ garages.