A lease is essentially a long-term rental agreement, offering exclusive use of a car for a set period at a fixed monthly price.
As a business, this can be a cost-efficient method of funding your vehicles as it takes advantage of the tax and vat regulations to reduce the whole life running cost of your vehicles and is supported by the buying power of Leasing Gorilla and our approved finance companies to assist in reducing the cost even further.
With Leasing you pay an initial rental followed by a series of monthly payments and at the end of the agreement, you simply return the vehicle. Your monthly rentals include: the Depreciation by far the greatest cost of running any new vehicle. Interest Charges, on the capital outstanding. Usually Road Fund Licence (Road Tax) for the contract period and can include Full Maintenance (if specified) covering everything from servicing to tyres and breakdown repairs essentially anything that is not the result of abuse or accident.
Leasing a car lets you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease.
Unlike dealer finance or bank loans you only pay for the depreciation of the vehicle over the term rather than the full capital value.
Rather than pay large deposits you simply pay a small initial amount, usually equivalent to three monthly payments, at the start of the lease.
Then, at the end of the lease period (typically two or three years), you simply hand the car back. The job of selling the car and picking up the tab for depreciation is the responsibility of the lease company.
If you take a maintenance agreement your only responsibility is to fully insure the vehicle throughout the contract and return it good condition and within the agreed mileage allowance. Do not worry if you go over your mileage as there is either a simple excess mileage charge or some finance companies will change your payments mid contract to reflect your change in circumstances.