The general public are sceptical when it comes to car leasing in the UK. The reason for this is simply down to lack of knowledge and understanding. Car Leasing is mistaken as a finance option only of benefit for companies. This judgement is wrong and can be highly suitable to an individual with certain requirements. It is very important that the individual knows exactly what type of lease they are agreeing to and what it entails.

Car Leasing is a legal agreement between the car leasing company (usually chosen by the dealer) and the customer. Car leasing companies buy and own the car that customer has chosen. The customer hires the car from the car leasing company by paying the agreed monthly instalments over a period of time.

It's a fact that many people now leasing are overpaying because they didn't know how to get a good deal — or how to recognize a bad deal. Other people who could greatly benefit from leasing are shying away because they are not comfortable with the leasing process and its unfamiliar language.

At the beginning of the car lease

You may have to pay your first monthly instalment upfront. You may have to pay a refundable deposit. Other fees may include administration costs, licenses, and registration and acquisition fees.

In the middle of the car lease

The monthly instalments. Additional taxes. Insurance premiums. Maintenance costs. In addition, an early termination charge may be payable if you want to end the lease early.

At the end of the car lease

A disposition fee if you don’t buy the vehicle, and any charges for excess miles and excess wear/tear.

There are a number of different finance options to choose from when it comes to leasing/contracting a car. Therefore the benefits differ from finance option to finance option. Some finance options would bring greater benefits to a business rather than an individual due to the nature of the arrangement. This also works in reverse with certain options benefiting the individual lessee rather than the business.

Lower Monthly Payments Than a Loan

Your monthly payments are between 30%-60% lower than for a purchase loan of the same term. The interest is also fixed on your lease payments so you can allocate finance in knowledge that it will not increase/decrease, the lease repayments are also set for the majority of finance options.

Lower Repayments Means More Car

Since your monthly payments are lower when leasing or contracting a car, you will be able to get more car for your money, and you will be able to drive a brand new vehicle every two to four years, depending on the term length of your lease contract.

Dissolve Maintenance Worries

Most people like to lease for a term length that coincides with the length, in months, of the manufacturer's warranty coverage so that if something major goes wrong with their car, it's always covered by the manufacturer warranty.

Lower Upfront Payment

Most leases require little or hardly no down payment, which makes getting into a new car more affordable and frees up your cash for other things. However, you can choose to make a down payment to lower your monthly payment amount.

No Used-Car Hassles

Contract Hire is a popular choice for VAT registered companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included. With this VAT beneficial financing package, one regular rental payment covers all risks including depreciation and disposal for an agreed period of time and mileage. Road fund licence is included and roadside rescue, maintenance and relief vehicle provisions are options that can be added and charged to the rental payment.

Finance Lease is ideal for companies who want to handle the administration of their vehicles and have the asset shown on their balance sheet. A VAT beneficial finance option where the hirer can choose to pay the entire cost over the agreed lease period, or pay lower monthly rentals with a final balloon payment based on the anticipated resale value of the vehicle. Unlike Contract Purchase the customer assumes the residual value risk.

Lease Purchase is ideal for companies that want eventual ownership of the vehicle. A funding agreement where the company acquires ownership once all the payments have been made. Part of the capital cost of the vehicle may be deferred into a 'balloon' payment at the end of the agreement. As with Finance Lease the customer assumes the residual risk.

Hire Purchase is ideal for companies that want eventual ownership of the vehicle. A funding agreement where the company acquires ownership once all the payments have been made. Part of the capital cost of the vehicle may be deferred into a 'balloon' payment at the end of the agreement. As with Finance Lease the customer assumes the residual risk.

Personal Contract Hire/Personal Contract Purchase is ideal for private individuals who wish to opt out of the company car scheme, therefore saving BIK tax. Both PCH and PCP ensures all the advantages of a company vehicle, no depreciation risk, road tax for duration of contract (PCH only), the option of full maintenance, without paying company car tax.

Covase aim to offer competitive quotations for all types of vehicle financing to suit the exact requirements of its customers. We can provide quotations on all types of vehicles from sports cars, coupes, 4x4's, small cars, estate cars, and executive cars to MPV's, hatchbacks and all makes and models of vans. Cost effective finance solutions on all makes of cars and vans from Ford, Vauxhall, Peugeot, Renault and Volkswagen to BMW, Mercedes, Volvo and Toyota.

Whether you require a Ford on contract hire, a BMW finance lease or a VW personal lease, we will aim to deliver the best quotation with the most suitable funding method. Covase uses technology, experience and its contacts to find you competitive deals and can source some very tempting offers. We insist that our suppliers employ a consultative approach so that the customer gets the package that best suits them, not the supplier. We aim to answer all your car finance questions.

Covase have a host of products available for both companies and individuals, a National service covering Scotland, North West, Yorkshire, West Midlands, East Midlands, East and South East England, South West and London and Wales:

Car Leasing Quote For Companies: Contract hire, Contract Purchase, Finance Lease, Lease Purchase and Hire Purchase are all available to any business user. Small, medium and large company fleet Leasing for cars and commercial vehicle contracts, Auto Leasing, Van Leasing and Truck Leasing Services.

UK Fleet Lease Management

Large and small fleets of vehicles - cars and vans form company fleet lease management contracts. We can arrange contract vehicle hire and company fleet vehicle leasing quotes for you including vehicle leasing business deals for long term car rental and contract purchase costs. Investigate fleet lease finance and vehicle management cost options to suit your companies needs. For private finance methods, vehicle leasing, private car lease and long term rental are cost comparisons for cars in UK.

Vehicle maintenance packages: are available with most types of leases allowing you to budget for all your on going motoring costs. Especially valuable for those who drive high annual mileages.

Car Leasing Quote For Individuals: Personal Contract Hire, Personal Contract Purchase, Hire Purchase and Outright Purchase are available to the individual private customer.

Car leasing and contract hire - multi franchise fleets including: BMW, Alfa Romeo, Citroen, Audi, Ford, Honda, Jeep, Chrysler, Daihatsu, Fiat, Jaguar, Kia, Mini, Nissan, Peugeot, Land Rover, Lexus, Mazda, Mercedes-Benz, MG, Mitsubishi, Subaru, Suzuki, Toyota, Vauxhall, Porsche, Renault, Rover, Saab, Seat, Skoda, Smart, Volkswagen and Volvo.

UK vehicle lease and hire options include: new and nearly new car and van leasing, contract hire, contract purchase, fleet lease, company car hire and fleet management, company and private car finance, long term rental, private car leasing and hire purchase. Vehicles can include any specification that you require, from GPS satellite navigation to climate control or air conditioning, window tinting in executive saloons to floor mats in 4x4's.