Used Car Leasing

Used car leasing under normal market conditions, would traditionally be a good way to reduce the overall costs of leasing a car. The current buoyancy of the used car market means that used cars are becoming increasingly difficult to source at a realistic competitive price. Due to the large discounts that we are able to negotiate from manufacturers on new cars, combined with the relatively strong residual values that we are able to achieve, a new car is often available at a lower monthly cost than used car leasing.

Used car leasing may still be a viable option when we are trying to source a rare car that is not available from UK main dealer new car stock. Used car leasing is often an option that we would consider when looking at leasing options for prestige cars. This is partly because of the long lead times associated with prestige cars, and partly due to the potential cost savings on an equivalent new vehicle.

Personal Car Leasing - Used car leasing is available on Personal Contract Hire (PCH) and Personal Contract Purchase (PCP).

Business car leasing - Used car leasing is available on Business Contract Hire (BCH) and Business Contract Purchase (CP).

What are the criteria for used car leasing?

• The car would usually have to be VAT qualifying. This means that the VAT has been claimed back on the car at original invoice date
• In most cases the car can only be a maximum of 24 months old at the start of the contract, and a maximum of 60 months old at the end
• The maximum mileage of the car would usually be 20,000 miles on a 24 month old car. This would be calculated pro-rata to the age of the car.

Which personal car leasing option should I choose?

Next, we will look at the specific advantages of each car leasing option.

Benefits of Personal Contract Hire and business Contract Hire

The following are further benefits that you would gain from Personal and business Contract Hire:

• Road Fund Licence - the Road Fund Licence is included in BCH and PCH agreements for the duration of the lease contract.
• All new vehicles are covered by full UK manufacturers warranty.
• Disposal is not an issue - the car is collected and returned to the lease company at the end of the lease agreement and there are no concerns about the car's residual value and no hassle in looking for a buyer.
• Optional maintenance packages – We can offer a wide range of optional maintenance packages, which can cover full servicing, maintenance and replacement tyres. This allows you to budget your expenditure throughout the contract, and avoids any unexpected bills.

Benefits of Personal Contract Purchase and Business Contract purchase

The following are further benefits that you would gain from Personal and Business Contract Purchase:

• Road Fund Licence – the Road Fund Licence is included for a minimum of the first 12 Months (sometimes we are still able to include this for the duration of the contract, depending on how the car is registered).
• All new vehicles are covered by full UK manufacturers warranty.
• Final Balloon Payment – You are able to purchase the vehicle at the end of the contract for a guaranteed sum, which is printed on the contract. This sum is not subject to change irrespective of market conditions. Alternatively you can simply hand the vehicle back at the end of the contract in the same way as a BCH or PCH.
• Optional maintenance packages – We can offer a wide range of optional maintenance packages, which can cover full servicing, maintenance and replacement tyres. This allows you to budget your expenditure throughout the contract, and avoids any unexpected bills.

Used Car Leasing Conclusion

Used car leasing can sometimes be a great alternative to leasing a new car. In some cases it can be a way of saving money, and in others it allows you to take delivery of a rare car far sooner than an equivalent new car.

Initial rentals are low with generally 3 months rental in advance, the car leasing agreement can include an optional maintenance contract, enabling strict budgetary control.

Used Car Leasing can also be a great alternative for new start businesses. Finance Houses are currently being quite strict with their underwriting criteria, and may only accept a credit line up to a certain value. Sometimes looking at a used vehicle may allow us to supply the car that the customer would like, within the finance restraints of the credit line.

For further information on the opportunities used car leasing can bring to your company or you as an individual, please call our sales team on: 01653 604300.