Whether to purchase a brand new car or lease a car in the UK is becoming a more commonly asked question. Rapidly changing technologies, such as car batteries, coupled with the prospect of large vehicle depreciation is making many people look at leasing differently. There are currently an estimated 1.5 million leased cars on British roads with that number increasing every year. Here DreamLease will attempt to explain and clarify some of the advantages and disadvantages of leasing and those of a traditional purchase. Please be aware that DreamLease can not give financial advice, if you require advice please contact a registered professional.
Simply defined, leasing a car in the UK allows you to drive a brand new car, typically over a 2, 3 or 4-year period without ever owning the car.
Leasing allows you to simply pay an initial payment at the start of the lease and then a fixed monthly payment every month over the lease term. At the end of the lease, you simply hand the car back to the finance company and are then free to lease another brand new car with new modern features such as more sophisticated safety equipment or improved electric range.
At the start of the lease, you agree to an annual mileage. As long as this hasn't been exceeded and the car is in a reasonable condition then nothing else needs to be paid. If you have driven additional miles then a small fixed price per mile driven is chargeable which is agreed upon at the beginning of the lease. If the car is returned damaged and the funder deems this over and above fair wear and tear for the age and mileage of the car, they may impose a charge, please refer to your leasing agreement for further information.
Drive a stylish, reliable, brand-new car with many added benefits.
This is a complicated question as vehicle prices vary considerably as well as their residual value. DreamLease would reason that leasing is more cost effective than buying a brand-new car outright. For Example, at the time of writing this 24/05/2022, you can lease a Nissan Qashqai 1.3 for 24 months for £198/pm with a total cost of £7,164 including road tax.
Had you bought this car outright the depreciation would likely have been thousands of pounds more than this over the 24 months.
DreamLease were able to find 2-year-old vehicles with 12,000 miles which had depreciated over £12,000 making the leasing option approximately £5,000 more cost-effective in this example.
Please consider these elements before leasing a car in the UK.
When Leasing a Car through DreamLease you must understand that you do not own the vehicle at any time and purchasing the car is not an option.
The car needs to be fully maintained with manufacturer-approved parts and needs to meet the funder's "Fair Wear and Tear Policy" at the end of the lease.
Charges will be levied if the car is damaged or if additional miles have been driven over the agreed annual mileage. Early termination of the lease contract can be expensive and should be considered.
Poor credit can make it difficult to lease a vehicle. It is the customer's responsibility to keep the car insured with a fully comprehensive cover over the entire lease term.
All our car leases come with a manufacturer's warranty which occasionally lasts longer than the total lease term. This means that most mechanical failures are covered with no additional cost to you.
Maintenance Packages can also be added to our lease deals which, depending on the funder, will cover many components including, tyres, wiper blades, exhausts, brake pads and brake discs. Please note that accidental damage is not usually covered.
For specific information please enquire on 01494 424242 or email us at firstname.lastname@example.org.
I have been a valued customer at Dreamlease for numerous years and have leased a total of 5 vehicles through them. The quality of service they provide is truly exceptional, and their communication and the swiftness of the vehicle ordering process are incredibly efficient.
29 August 2023
Excellent, fast and accurate customer service. Would be using DreamLease in the future I will also recommend it.
10 May 2023
Excellent communication throughout the process of leasing my car.
Always helpful and respond quickly to any questions and delivered my car ahead of schedule.