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Leasing Information


What’s the alternative to purchasing a vehicle...?

Well, leasing a new car could be your answer.

With used car values falling year-on-year, coupled with an uncertain economy and rising household bills, the growing risks associated with new car depreciation have forced car buyers to look at cost-saving alternatives.

And being the most advanced car leasing market in Europe, the UK has no shortage of leasing companies, whose expertise is in buying hundreds of thousands of new cars every year and recycling them back into the increasingly voracious used car market at end of contract.

More often than not, if you’re looking to change your car regularly (say every 2 or 3 years), car leasing works out less expensive than ownership, because not only are you tapping-into the buying power of the big leasing companies, you’re also removing the costs and hassles of selling your car when you’re ready to change again.

An even more compelling reason is that you don’t even need to hunt from dealership to dealership, as the best leasing rates can often be found online, at a time that is convenient for you – day or night.

And it’s the convenience and the ability to manage your motoring costs more effectively – coupled with the cost saving benefits – that are leading to unprecedented levels or personal car leasing in the UK.

Why choose Contract Hire?

Contract Hire is quickly becoming the #1 choice for motorists throughout the UK. There are many reasons why Contract Hire is so popular:

  • It offers off balance sheet funding
  • It is a VAT efficient way of operating a company car
  • It provides fixed motoring costs for the contract period
  • It removes the uncertainty surrounding future, ever fluctuating residual values
  • It frees up your staff time, by reducing in-house administration
  • It is available with an optional monthly maintenance charge (which covers routine maintenance and servicing costs)

Low monthly rentals

There’s no large initial outlay and monthly payments are fixed, so it’s good for cash flow and makes budgeting a cinch.

You pay a fixed monthly rental and – at the end of the contract – hand the car back to the leasing company with nothing to pay (provided that the car meets the mileage and condition criteria agreed at the start of the contract).

Hassle-free motoring

So you don’t have the hassle of selling the car when you replace it. It also means you don’t have to worry about the risk of falling used car values (known as residual values). If the second-hand car market drops suddenly, that’s the leasing company’s problem, not yours.

Good for business

Most of the fleet management can be handled by the fleet provider, which frees up company resources and the funding isn’t shown on the balance sheet, which reduces a company’s debt liability and helps to improve your corporate credit rating.

End of contract

At the end of a contract hire agreement - after the vehicle is returned - car leasing companies will charge for any excess mileage (over and above the total contracted mileage) and any damage (or unfair wear and tear) on the vehicle. These charges can vary from reasonable to very steep - depending on the leasing company - so it is advisable to check the small print on your contract before you sign. Also, if you end (early terminate) a contract hire agreement early, the penalties can sometimes also be quite high - typically 50 percent of the remaining rentals. So if you're unsure about the length of time that you want to keep the car, it may be more prudent to pay slightly more per month for a shorter contract length.
 

 

 

   
 
MC Leasing Ltd, The Stables, Eaves House, Waddington, BB7 3JF

 

 

Please note all pictures are for illustrative purposes only. 

MC Leasing Ltd is authorised and regulated by the FCA for the purpose of credit brokering, we are not a lender.

FCA Registration Number : 620351

Company Registration Number : 8535010

Data Protection : ZA003349

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