Ever heard the term 'car leasing' but not quite sure what it means? Well, brace yourself as we're about to tell you exactly what it means and how it works.
What is car leasing?
So rather than having to find a massive lump sum upfront to pay for a new car, companies within the UK came up with a way which meant that you didn't have to, called leasing. It makes perfect sense if you think about it. Rather than having to shell out thousands on a new car and leave yourself skint, you could just lease a brand new car. Car leasing is basically about you choosing a car that you like and renting it for a period of time. However, this is for a set fee and once your leasing term is up, you must return the car back to the leasing company. Most importantly, you'll have complete freedom over which car you'd like, whatever make, model and other specifics. You have the power and can tailor you contract in terms of annual mileage, payment plans as well as how long you want the length of the contract to be. The cost of your lease is based on various different factors such as the value of your chosen car, the estimated value and the end of your lease and your mileage allowance too, but you can discuss all of this with your leasing company.
How does it work?
Basically, when you lease a car you'll start off by putting down a deposit, which is also referred to as an initial payment. This is then followed by a several number of instalments at the price of which you would have agreed with your car leasing company until your lease ends. You're essentially just leasing the car at a monthly fee just like a long-term rental until its time to give the car back. At the end of your lease, you'll just return the vehicle in the same condition that you first got it in. Your payments will then stop and you'll be free to lease another vehicle if you wish. It's as simple as that. It's also worth noting that if you drive your leased car more than you thought you would have done, which has now resulted in more mileage than you initially first thought, it's no big deal, you'll probably just be charged a little bit extra for this.
You won't own a leased car
When you take out a lease agreement, nowhere in that agreement will it state that you'll own the car at any point during your lease with a company. The car you have chosen to lease will always remain the property of the leasing company, even after you make your first payment. Think of it like renting a house - you'll have sole use of it but at the end of the day, the house is still owned by the landlord at all times. If you get bored easily and like to change your car every couple of years then leasing might be for you. However, if you're looking for a car that you can keep for quite a long time, then it might be worth considering something else. So if you fancy selling your current car, maybe its too old and you're in need of a fresh set of wheels, not to worry as we're here to help. Here at Jamjar, we can help you to sell your car, no matter what the make, model or mileage. Even if you're not 100% sure that you want to sell your car right now, maybe you just want to get a rough price of how much you could get, then you get that right here. Check out our free online car valuation tool today and find out just how much your car could be worth.