What Is Leasing
What is Vehicle Leasing
Car leasing is very similar to renting. You choose your vehicle for an agreed period, commonly between 2 and 5 years, agree what mileage per year you will drive, then you pay a fixed fee for the agreed period, (because leasing attracts VAT, if the VAT rate goes up or down so will your rental). You NEVER own the vehicle.
A lease is worked out based on a few different factors,
- Value of the new vehicle,
- How many miles you will drive over the length of the contract
- What the funder estimates the value of the car after you have returned the car, known as Residual Value (RV).
Because in essence you are only funding the depreciation on the vehicle, this makes leasing a cost effective way of driving a brand new car.
A point to please bear mind. All reputable vehicle leasing brokers are members of the British Vehicle Rental & Leasing association (BVRLA). We strongly advise against leasing with anyone who does not display their logo along with a BVRLA membership number on their website. As a member of the BVRLA, we have a code of conduct to work to.