It ’ s important to understand how the lease works to grasp how some of the factors affect your payments . Often it gives you a better monthly payment and also what happens at the end of the lease . An easy way of doing this is to breakdown your car like the one below .
The green section on these cars is what you actually pay in total over the lease and the red section represents the residual value to the leasing firm of the car . The left hand car shows a shorter term in the lease , meaning a higher residual , so overall you pay less . The right hand car represents a longer lease so there is more time to spread the cost , but the residual is lower .
The residual value is based on the term and mileage profile you choose , and is based on the standard car . As a result , outside of a few exceptions , any option added to the car has a direct impact to what you pay every month . For example adding a £ 1000 option , on a 3 + 35m lease , you would pay an extra £ 26 per month
Sometimes there are special offers on the car you are looking at on a specific term , and we aim to use our expertise to bring you these deals .
So what happens at the end of your lease ?
You simply arrange to hand the car back to the leasing firm and start again with another car . By this point we will have been in touch with you to discuss your handback and also we hope you next car will be on order with us . This means we can manage the handback of your old car to be seamless with your new car arriving . We will also help and consult with you to make sure your car is in a good condition for it ’ s return to the leasing funder .
At this stage , if you don ’ t want to change vehicles , it may be possible to purchase your car from your leasing firm . However the pricing is set entirely by the leasing firm and may not represent the market value of the vehicle , and we have covered why owning a car is not always the best way to have a car .
8 : @ KingoftheRoadUK : Simplicity Cars : http // www . simplicity-cars . co . uk : andy @ simplicity-cars . co . uk