Picking the Right Body Style: Are you in the market for a new car lease but unsure which body style is right for you? With so many options available, it can be overwhelming to decide which one is the best fit. In this article, we’ll break down the most popular car body styles and help you choose the one that meets your needs with AutoLease.Compare.
1. Saloon
Saloon cars are the most popular car body style in the UK and for good reason. They offer a comfortable ride, good fuel efficiency, and plenty of boot space. If you’re looking for a car that’s practical, reliable, and easy to drive, a saloon is a great choice. Saloons come in a variety of sizes, from compact to full-size, so you can find one that fits your budget and lifestyle with AutoLease.Compare in the UK.
SUVs are a popular choice for those who need more space for passengers and cargo. They’re taller and offer a higher driving position, which provides better visibility on the road. SUVs are also available in all-wheel drive, making them great for driving in inclement weather. If you’re looking for a car that can handle a variety of terrains and has plenty of room for your family, an SUV might be the right choice for you.
Hatchbacks are a great choice for those who want a car that’s easy to and park in tight spaces. They offer a more spacious boot area than a saloon, and the rear seats can be folded down to accommodate larger items. Hatchbacks are also known for their sporty look and feel, making them popular among younger drivers with in the UK.
Coupes are a two-door car that’s known for its sleek design and sporty feel. They’re typically smaller than a saloon or SUV, making them easier to handle and park. Coupes are also known for their better performance and handling, making them a popular choice for those who enjoy driving on curvy roads in the UK.
If you’re looking for a car that’s fun to drive and perfect for a sunny day, a convertible might be the right choice for you. Convertibles have a retractable roof, allowing you to enjoy the open air while driving. They’re typically more expensive than other body styles, but they offer a unique driving experience that’s hard to match.
People carriers, also known as MPVs or minivans, are a great choice for families or those who need to transport multiple passengers. They offer plenty of space for passengers and cargo and come equipped with features like sliding doors and fold-flat seats. If you’re looking for a car that’s practical and versatile with AutoLease.Compare in the UK, a people carrier might be the right choice for you.
Estates, also known as station wagons, are a great choice for those who need extra cargo space. They offer a larger boot area than a saloon, making them a popular choice for families or those who frequently transport large items. Estates also come equipped with features like roof rails and fold-flat seats, making them versatile and practical.
Picking the Right Body Style is important to consider your lifestyle, budget, and driving needs. By understanding the different options available with AutoLease.Compare in the UK, you can make an informed decision and find the perfect car for your next lease.
At AutoLease.Compare, we offer a wide selection of cars in different body styles to meet your needs. Contact us today to learn more about our lease options and find the car that’s right for you.
The used cars that lose you the most money: Electric vehicles dominate the list of the biggest price fallers – another reason to start car leasing?
The used cars that are falling most in value compared to a year ago have been revealed – and the list makes for painful reading if you own an electric vehicle.
Five of the top six second-hand depreciators are battery electric models, some of which have fallen in price by as much as a fifth in the last 12 months.
Why buy a used/ new electric car which depreciates in value when you can simply lease it?
Top 5 used car price fallers
Five of the top six depreciating models are electric – here are the motors with the largest declines.
1. Jaguar I-Pace – Jaguar’s only electric model is the biggest price faller among used cars. Average advertised prices are down 21.8% on this time last year
2. Volkswagen ID.3 – The VW.3 is still relatively expensive for a used medium-sized hatchback, but this EV has dropped in value dramatically in the last 12 months (17.2%)
2. Tesla Model 3 – Tesla’s decision to slash new car prices earlier this year has taken a toll on used values – even for its most popular vehicle, the Model 3. The average used price for this compact family saloon is down 17.1 per cent compared to a year ago, down to £35,603.
4. Audi e-tron – Audi’s e-tron electric SUV might have declined 16% in value in the last 12 months, but the average used example listed for sale is still priced high at over £47,000
5. Hyundai ix35 – Some SUVs are definitely seeing a dip in demand on the used market. This is true of Hyundai’s ix35, which has fallen by 13.4% in the last 12 months.
What are the benefits of leasing?
Avoid depreciation costs Avoid deprecation costs if you were to buy the vehicle. This lowers the risk of owning a depreciating asset.
No MOT required & Road tax included New cars do not need a MOT in the first three years of their life. Road Tax included as part of your lease agreement free of charge.
Warranty protection Manufacturer’s warranty is included with your lease deals free of charge. Most leases let you drop your car off at the garage for no extra cost if something goes wrong.
Lower maintenance costs Much lower maintenance costs – breakdown cover often comes as part of the package (covered under manufactured warranty), servicing sometimes too if you included a maintenance package as part of the agreement.
Cheap and hassle-free You can drive a brand new car every few years which you never thought you could afford. Once the contract lease period finishes on your lease agreement you can get another brand new car – simple and hassle-free. There’s also no hefty financial loan to buy the car.
Fixed monthly payment and flexible initial payment Fixed monthly payments, which are cheaper than buying a car on finance (PCP). You can also choose how much you want to pay upfront (normally 1, 3, 6, 9 or 12 months initial payment).
Contract length of your choice You can choose how long you want the car for – contracts lengths are normally 2, 3 or 4 years.
Online applications You can enquire or call to get a quote in minutes, then the leasing provider will be in touch to go through a quick credit check.
Free Delivery Vehicles can be delivered straight to your home free of charge (mainland UK).
Find car leasing deals with AutoLease.Compare
If you’re looking to avoid the cost of buying a depreciating asset (a new or used car), then car leasing will be a suitable solution for you.
Want to know to remove scratches from a car? The exterior paint is one of the most valuable aspects of a car. Scratches can not only lower the value of the car but also make it look unsightly.
Mistakes do happen sometimes when we’re careless or in a hurry. However, oftentimes, we’re on the receiving end of some other driver’s inattentiveness when our car’s parked in the parking lot or even while driving on the roads.
The following tells you how to remove scratches from your car:
How to get paint scratches off a car?
Got a ding or two on your car? Fixing it may be simpler than you think if the scratches are light. This means that they’ve only penetrator a layer or two of the paintwork. You can confirm this by rubbing your finger over the scratch and not being able to feel the blemish.
In this case, you can just polish it and this is a DIY job. You just need the know-how and some very basic equipment to get the job done. There are two main types of these scratches though:
Swirls
These are the swirl marks that stem from when you clean your car with a dirty or gritty cloth. Your car could be shining for all you know but these marks will still be visible when natural or artificial light shines on them.
The solution is to get a trusty scratch remover that has good recommendations. Get a clean cloth and apply some scratch remover to it. Then, use the cloth on the swirls in a circular motion and watch them disappear.
Scrapes
These are a bit more serious and they’re a result of the car brushing off something. If the damage hasn’t penetrated the paintwork enough to get to the metal, you can still fix it yourself to clean it up. There are a number of kits that can help you here.
All you need to do is identify the exact colour of your car’s exterior paint. Then, you can find a DIY kit that matches the colour. You’ll just need to clean the affected area and use the included paintbrush over the scraping. Once everything’s dry, just clean and wax the car.
Now, fixing a scratch may not go as smoothly as you expect. The reason for this is that the paint may be chipped, scuffed, or dented.
You can get a scratch repair fluid to fill up the damaged area. You just need to get one with the right colour code to match your vehicle. Get an abrasive pad to clean the scratched region and then apply the repair fluid and try to let it cure.
Fixing damaged paintwork
Buffering is the way to go here but it will be a difficult task if you’re not an expert. In this case, it is better to head to or call a professional such as a Small to Medium Area Repair Technique (SMART) technician. They’ll make the car look as good as new. Luckly we have already partnered one the UK’s leading SMART repair companies – DWV. You can submit your detail here to get a discounted rate through AutoLease.Compare.
Does toothpaste get scratches out of cars?
Yes, if you don’t have a scratch-removing solution, you can use toothpaste for smaller scratches. The usage pattern is simple: thoroughly clean the scratched region, apply toothpaste to a microfiber cloth, and use it on the scratch in a circular motion. Then, you just rinse it.
How to prevent scratches on a car?
Prevention is truly better than cure and you can prevent scratches by:
Driving and parking somewhere with wide pathways and roads
Using a microfiber cloth to clean your car
Using Paint Protection Film (PPF) on the exterior
If you have a leased car, it shouldn’t hurt to do all of the above since you’ll be penalised if you exceedfear wear and tear.
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If you’re looking for the best car lease deal, check out AutoLease.Compare to find the best leasing options that can get you lower monthly payments.
When it comes to leased cars, people tend to have all sorts of doubts about what is allowed and what isn’t. The issue of tyres is a perfect example of this, as there are questions about who’s responsible when it comes to lease car tyre replacement, whether the replacement costs are covered, when the tyres need to be changed, and more. The following tells you everything you need to know about lease car tyre replacement:
Can you change the tyres on a leased car?
Yes, you can. In fact, you have to in some cases. If your tyres get damaged beyond what’s covered in fair wear and tear, you’ll need to replace them before the lease term ends. Otherwise, you will be penalised for damaging them.
In fact, you need to drive with a set of tyres that are legal on British roads. And no, this isn’t just because they’ll keep you safer. It is a fact that driving with worn out tyres is a finable offence and it can even lead you to prosecution in a court of law.
Do you have to put the same tyres on a leased car?
It depends on your lease provider. Generally, you don’t need to replace the tyres with the same brand. Many who lease cars often get anxious about putting on the same premium tyres that the vehicle came with.
However, the British Vehicle Rental and Leasing Association (BVRLA) says otherwise. According to them, the tyres just need to comply with the carmaker’s recommendations of type, class, size and speed rating for the vehicle.
So, unless the lease provider specifically mentions that you need to use the exact brand or put on a set of pricey hoops, you don’t have to go overboard on the expenditure.
When should you change the tyres on a leased car?
There’s no specific time period for changing your tyres. In fact, it all comes down to usage and the condition that the tyres are in. You’ll have to visually inspect the tyre for overuse or any sort of damage from recent impacts.
You’ll need to replace the tyres if they undergo one or more of the following troubles:
Excessive treadwear – this means that the tread depth has exceeded 1.6mm
Positive cambering – the wheel’s top is further out than its bottom part
Damages – cuts, bulges, and uneven treadwear due to misalignment
If the tyre has none of the aforementioned traits, then you’re good and a replacement isn’t due. The British Vehicle Rental & Leasing Association (BVRLA) have a fair wear and tear standards for lease cars, read it here link.
Are tyres included in your lease deal?
Not unless you opt for a maintenance package. To sum it up, it is a package deal offered by the lease provider which lets them pay for servicing. Such a package is widely recommended if you have a long-term car lease deal.
A car maintenance package can be advantageous for tyre troubles as it can:
Cover tyre replacements – premium tyres are arranged for you
Provide complimentary repairs – punctures are paid for at a location nearest to you
Arrange for mobile tyre replacements
It should be noted that such a package won’t be able to help you if:
The tyre damage is because of your carelessness
The tyre replacement is required due to stolen or vandalised tyres
Leased car tyre maintenance
That being said, how does one take care of their tyres so that a replacement job isn’t required? Well, it is simpler than you may think. You just need to maintain your tyre pressure; try to keep it inflated according to seasonal needs. Over- and underinflation accelerate wear and tear.
It will also help if you have the tyres rotated at regular intervals. Also, try not to park your car in any rough neighbourhoods to prevent the chance of any tyre theft.
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Finding the best car lease deal can be tough, but not when you’re using AutoLease.Compare. We’re here to find the best leasing options for you, so that you pay lower monthly payments for the best leased cars.
To know if leasing a car affects your mortgage, click here.
Winter Car Maintenance Tips
The winter season can take a toll on cars hence it is important to be aware of cold-weather car maintenance. Doing so will make your driving experience a lot safer, plus it will minimize vehicle downtime. The following are some important winter car maintenance tips to follow:
Winter Car Maintenance
To ensure that your car functions well during the winter, you need to take care of the following:
Winter tyre changes and checks
The roads in the winter tend to get slippier and this not only increases the chances of skidding but braking distances also increase. The first step is simply making sure your tyres are actually legal to be on the road. During winter months the legal minimum tyre tread depth is 3mm.
Investing in a set of purpose-built winter or snow tyres is a no-brainer if you live in a region where the temperature is lower than 7 degrees celsius. These adapt better to colder temperatures with their flexible rubber compounds and their aggressive tread patterns. They’ll do a better job of increasing your traction than the A/S ones you may currently have. As a bonus, some winter tyres are also oriented for usage on snow.
Also note:
Do not let air out of your tyres in order to get more grip. It doesn’t work and its very unsafe
Only use snow chains if there’s enough snow to stop the road from getting damaged
Tyre pressure
Maintaining your vehicle’s tyre pressure is crucial in order to prevent excessive wear and tear, and ensure a longer life for your tyres. It is a fact that your tyre pressure decreases during the winter as a result of the lower temperatures.
This is why you need to carry out a tyre pressure check every now and then to make sure that there’s enough air in each tyre, according to the manufacturer’s recommendations.
Exterior protection
There’s a lot that can build up on your car’s exterior and be difficult to remove. Grime, sleet, and especially road salt are big nuisances. This is why it is recommended to use polymer wax which behaves as a barrier.
Also included in winter car maintenance is washing the car after a heavy snowstorm to get rid of any sort of snow that builds up in tougher spots. One of the reasons for this is to clear up your lights (to ensure maximum visibility) and your number plate.
Fluid check
There are a number of different fluids in your car that need to be at their optimal levels throughout the year. However, you need to be especially careful during ice-cold winters as breakdowns can be dangerous if you have no help.
You need to ensure that you have the right engine oil in your car and that it is up to the mark. It is imperative that you opt for thinner oil so that your car doesn’t have trouble starting in lower temperatures. Look through your vehicle’s owner’s manual for the best recommendation.
Then there’s the windshield wiper fluid, which also gains importance during the winter. You’ll be using your wipers a lot more if your area has snowstorms and this will deplete the washer fluid quicker.
Another key fluid that needs to be in check is the coolant. The components of your car’s cooling system can freeze up which is why you should use antifreeze.
Battery health checks
Car batteries tend to die out more easily in the winter. Research indicates that dead batteries are one of the biggest causes of vehicle breakdowns during the wintertime. As a result, it is key that your battery is in good condition.
You need to check your battery fluid levels routinely. Also, if your car has a slower starting time, it is an indicator that there’s something wrong with the battery system. You should then have it diagnosed by a professional.
Demisting your car windows
Science tells us that your car windscreen mists up due to water vapour in the atmosphere that arises when your body and breath heats up the air inside the cabin, increasing the amount of moisture it can hold. When this comes into contact with your windscreen, it cools and condenses, forming a ‘mist’.
And how do you solve this? By taking one of these steps:
Direct your air-con at the windows. Start it off cool, then gradually increase the temperature
If you don’t have access to air-con, then roll down the windows
If your car has demister buttons, use them. What they do is automatically readjust the ventilation system so that it’s focused on demisting, rather than having to adjust the air-con manually
Winter car essentials
Along with following the aforementioned winter vehicle maintenance tips, you need to carry the following essentials with you:
Tow rope
Torch
Carpet – to put underneath your tyres in case you get stuck
First aid kit
Bottled water
Jumper cables
Ice scraper
Beware of black ice
Black ice tops the danger chart when it comes to winter driving. Whenever temperatures near zero, make sure to drop your speed and drive smoothly, avoiding any sudden steering, braking or acceleration. Avoid unsettling the car and skidding by braking in a straight line, slowly and progressively. If you do end up locking the brakes, let go of the brake pedal and steer into the skid to regain control. Only drive in black ice-type conditions when you really have to.
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Having trouble finding the best car lease deal? AutoLease.Compare is here to help you find the best leasing options that offer cheaper upfront costs and monthly payments.
To know if leasing a car affects your mortgage, click here.
Car Leasing Maintenance Packages and Servicing
Car Lease Servicing & Maintenance Explained: A big part of owning or leasing a car is caring for it. A leased car is a big responsibility since you’ve got it on a personal or business contract hire and you’ll have to return it in good condition at the end of the lease. To make this easier, one can get an optional car leasing maintenance package added on the deal, at an extra monthly cost.
As far as servicing is concerned, there are many misconceptions… Do leases include maintenance? Should I get a maintenance package? Does this include servicing? The following covers everything you need to know…
What is a car leasing maintenance package?
When you take out a lease on a car, leasing providers will give you the option to take out a maintenance package. This will be a set fee added onto your monthly lease payments or can be paid separately.
It can give you peace of mind when it comes to common wear and tear issues which can occur from normal use throughout your lease contract. It will also cover regular servicing to the vehicle.
What is car servicing?
In order to keep your new lease vehicle in the best condition, you must service it at regular intervals as recommended by the manufacturer. A car service is an important part of your lease agreement, as well as an important part of the manufacturer’s warranty. By keeping your vehicle in a good condition with regular servicing, you will also be less likely to incur high garage charges or fair wear and tear charges in the future.
Do lease cars include maintenance?
So, who pays for servicing on a leased car? The answer to that depends on whether you pick car leasing with servicing included (maintence package). There are some lease deals with maintenance available upon request.
There are many different car maintenance packages available in the market, and if you opt for one, it can get you the following perks and more:
Routine maintenance for the leased car
Repairs incurred from fair wear and tear
Service management
Breakdown cover
These were the features that all of these deals tend to offer. Some car leasing maintenance packages are much more lucrative though. They may offer services such as cover for tyre replacement, MOT testing, etc.
While a maintenance package has you covered for wear and tear problems mentioned above, there are a few things which you should be aware of.
The following won’t be part of the package:
Vandalised or stolen parts or accessories.
Vehicle repair work for damage caused by an accident.
Damage caused by misfuelling.
Broken or missing items.
Body and paintwork damage which exceeds normal wear and tear.
Why is maintaining your lease car important?
Maintaining a kease car is a no-brainer, especially a leased one. Here’s why:
No car lease penalties
It is a known fact that your vehicle will be evaluated when you return it at the end of the lease term. If it is in bad condition due to rough and carefree usage, you will be penalised. Anything outside the realm of fair wear and tear will cost you and it will be pricey.
Lower running costs
But it isn’t just the lease provider that should coerce you into maintaining your car. A well-maintained car will run better and consume less fuel.
Higher dependability
One of the reasons why a leased car is so preferable is because you get to drive it during its first three years; aka its best ones. Despite this, driving a car without maintaining it will turn it into an unreliable car that could break down at any time or at any place.
Is car lease maintenance worth it?
A car lease with maintenance is recommended if you get the usual lease deal that lasts for +3 years. Otherwise, if you have a short-term car lease deal that is only good for a year or so, it isn’t really recommended to pay extra for an add-on maintenance package.
The best part about leasing with maintenance included is that even if parts and labour become pricier (which the UK is prone to), you still won’t be affected. This, and the fact that you’ll be paying less than what your car needs for servicing and repair, can make it very cost-effective.
So, should I get a maintenance package or not?
If you do a large amount of mileage e.g. 30,000+ per annum, then a maintenance package can be a sensible option. The more miles you do means there’s a higher chance of wear and tear on your car. By taking out a maintenance package, you’re protecting yourself from potential charges for exceeding wear and tear, which could end up costing more than the maintenance option.
On the other hand, the maintenance package may not be affordable on top of your monthly lease payments. If this is the case, and your lease agreement is 3 years or less, then it’s probably not worth adding the package on (but please do your own analysis!).
All brand-new cars are covered by manufacturer warranty, which will cover you for unexpected mechanical or electrical problems. So, if you can follow basic maintenance measures such as; oil checks and driving in a manner which keeps the car damage free, a maintenance package might not be required.
If you are unsure, you can always be given a quote with maintenance cover included, and how much it costs without. However, remember you need to keep the car in good condition, which includes routine servicing and repairs.
TIP: Manufacturer warranty will cover you for 3 years or up to 60,000 miles (whichever comes first), so make sure you check you lease deal falls within these limitations if you don’t go for a maintenance package.
What are the service intervals on my lease vehicle?
Service intervals differ depending on the make and model of the car, but as a general rule, a full car service is highly recommended every 12 months or every 12,000 miles. This is because some parts, such as oil and brake pads need checking more regularly than others, such as the fuel filter and spark plugs.
As every make and model is different, it is important you check your manufacturer’s handbook to find out the required ‘service intervals’ are for your vehicle and what parts need replacing and when.
If you do not have your manufacturer’s handbook, you can visit the manufacturer’s website for servicing information. We have done the hard work for you and provide the links below:
Do I have to use a main-dealer to service my lease vehicle?
If maintenance is included in your lease agreement, you will need to contact the finance company (leasing company) to book your car into a local approved garage for its annual service and/or MOT (if required after 3 years).
If you do not have a maintenance package included in your contract, you will need to arrange for the car to be serviced at the appropriate intervals as noted in your handbook or the manufacturers website. .
It is recommended to go to a local main dealer to have your car serviced. Most manufactures websites have a dealer locator search – so you just need to enter your postcode to filter through a list of your local dealers.
If you prefer to use a local garage, the garage must be VAT registered and must use genuine manufacturer parts on the car.
Make sure that the service light on the dashboard is reset and that your service handbook is stamped (sometimes this is done electronically online).
Please note, some finance providers, such as Audi and Mercedes-Benz, specify that the car must be serviced at an authorised dealership.
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Fair wear and tear is important whenever we talk about leased cars. This is as their condition undergoes some form of decline after having been used by the drivers. Damaging a leased car does mean that you have to pay some sort of penalty when returning it.
However, you don’t have to pay for fair wear and tear, according to the BVRLA. This is because this is the expected outcome after a vehicle has been in use for the lease period. You should know that there are a couple of guidelines for what is actually covered here.
The following is all you need to know about fair wear and tear for leased cars:
Fair wear and tear meaning
Wear and tear is a common term used to denote any forms of deterioration that occurs during an item’s usage. If we look at cars, most of their components are specifically designed for long-term use. But what is the fair wear and tear definition?
Well, according to the Fair Wear and Tear Act in the UK, it is limited to the “reasonable use of the premises by the tenant (the car lessee in this case) and the ordinary operation of natural forces.”
The British Vehicle Rental and Leasing Association (BVRLA) defines it as “when normal usage causes deterioration to a vehicle”. This means that it is the amount of damage that you can expect from normal ownership habits.
Hence, any form of excess damage to the car due to carelessness isn’t covered. As a result, any sort of deterioration from accidents, or overloading the vehicle will cost you when the lease term is over. Although less pricey, this is similar to the penalties when ending a car lease early.
Examples of fair wear and tear
People often tend to be more careful with leased vehicles as they’re afraid of being penalized for the damage. It should be known that there are some imperfections, which are acceptable to lease providers. They are the following:
Light scratches on the lights, the windscreen, or the wheels
Modest tyre wear; car should still be legal to drive on British roads based on the tyres’ condition
Slight stains on the upholstery, but without any tears
Chips, dents, deep scratches, and any sort of damage incurred from hitting the car are not passable, unfortunately. That being said, different lease deals can have their own criteria for judging this sort of thing. Hence, it is imperative that you read about what’s acceptable on your lease contract.
BVRLA guidelines
The aforementioned section gives you an idea of what fair wear and tear is. If your car lease provider is going to assess the condition of the car via the BVRLA fair wear and tear guide, there are three possible options here, based on the type of vehicle you have. The BVRLA has guides for cars, light commercial vehicles, and heavy commercial vehicles; all of them leased.
Penalty for exceeding fair wear and tear
Using a leased vehicle roughly and damaging it beyond what’s acceptable to the lease provider can be a pricey affair when the lease term is over. According to Nationwide Vehicle Contracts, the average penalty in 2020 was 326 GBP.
Lease car maintenance
The best way to save yourself from these charges is to take good care of the leased car. This doesn’t just mean keeping it clean and free from any dents, but it also means following the manufacturer’s recommendations for maintenance and usage.
Also, it is best that you have the car inspected for the damage a week or two before the lease term ends. You need to make sure that it is in the best condition to save you from any heavy lease penalties.
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If you think leasing is for you, check out Auto Lease Compare to get the best car lease deal for yourself. Choose from our best leasing options and get lower monthly payments which can save you thousands.
There are a number of questions asked by many first-time car leasers. One of the most important ones is: “will leasing or financing a car affect buying a house?”.
So, let’s look at how car leasing (PCH) and financing (PCP) affect your mortgage application.
Does car leasing affect buying a house? How does leasing a car affect mortgage?
Lease payments are made up of two parts – a depreciation charge and a finance charge. The depreciation part of each monthly payment compensates the leasing company for the portion of the vehicle’s value that is lost during your lease. The finance part is interest on the money the lease company has tied up in the car while you’re driving it.
The main factor that is used all around the world in giving out mortgage deals is Debt To Income ratio (DTI). This is the amount of debt that you’ll be in after you sign the deal, divided by the amount of money you make. For example, paying £2000 in debt with an income of £4000 gets you a DTI of 50%.
As mentioned above, when you lease a car, you’re bound to make monthly payments until the end of the car lease term. When the car lease period ends, you’ll probably try to get another car lease deal or sort out vehicle finance.
If you get a house on a mortgage, you’ll be making an additional payment each month along with your ongoing lease deal. This increases your DTI and affects your credit score, so it will affect the terms and conditions of your mortgage deal. But why is that exactly?
You should know that leased cars also fall into the liability category, despite the many advantages that they bring. As a result, the payments that you make for them will be considered in your monthly DTI, which may result in you having to pay for a pricier mortgage deal, however, this is not always the case.
It is true that both having a place to live and car for transport are considered to be primitive needs and if you really cannot do without both of them, then it is recommended that you get yourself a cheap lease deal. Make sure you compare deals using our car leasing comparison tool.
There are some advantages of car leasing vs getting a car on finance (PCP) when it comes to getting a mortgage, we explain more below.
Does having a car on finance affect mortgage?
Loan payments also have two parts – a principal charge and a finance charge. The principal pays off the full vehicle purchase price, while the finance charge is loan interest. Since all vehicles depreciate in value by the same amount regardless of whether they’re leased or purchased, however, part of the principal charge of each loan payment can be considered as a depreciation charge. Just like with leasing, it’s money you never get back, even if you sell the vehicle in the future. Yes, financing a car, or getting a Personal Contract Purchase (PCP) can also be viewed skeptically by your mortgage provider. You’re making high monthly payments towards the loan, and your credit score is also affected.
But, does leasing a car affect a mortgage more than financing one?
Well, it depends on how much you’re paying. The higher the payment you make each month, the more effect it will have on the mortgage deal that you’re offered. This is where car leasing is a better option as the monthly lease payments are more likely to be lower, and, you won’t have a heft financial loan on your name.
This means that you’ll save a lot more money, which allows you to obtain a better mortgage deal. So, your mortgage provider will have enough trust in you to offer a less expensive and a shorter-term mortgage deal. You can see more pros and cons of leasing vs buying here.
Conclusion
It can be safely said that car lease and finance deals can potentially make your home ownership process a bit more difficult.
The key to remember when you’re looking to purchase a home and obtain a mortgage or refinance an existing mortgage is that, if you overspend on a vehicle, it affects your debt ratios and may restrict or negate your mortgage financing ability.
However, getting a good car lease deal is likely a better option rather than taking out a car finance loan (PCP) for the very same car.
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Looking for the ideal car lease deal? Try Auto Lease Compare, to make your choice a lot easier. We’ll show you what the best leasing options are for your favourite car. Hence, you will be able to get lower monthly payments which can save you thousands.
There are a number of existing ways to get a vehicle, with car leasing often being considered as the most efficient when requiring a brand-new, shiny car. It can be a great way to drive a new car, if you cannot afford a large upfront payment and want to avoid car value depreciation. However, the question then arises, what is car leasing exactly?
It should be known that car leasing is essentially a long-term rental agreement for a vehicle. You essentially lease a car for a set period of time (usually 1 – 4 years), while making monthly payments. When the car lease is over, you will return the car back to the supplier.
The following tells you all about car leasing, including – what you need to lease a car, and how to find the best car lease deals in the UK.
How does car leasing work?
Car leases are offered by dealerships, leasing brokers, and lease providers. They’re considered a way for people to drive off in a new car; but without paying the full purchase price upfront. You agree on the time interval (aka the lease period) and the monthly lease payments beforehand.
You can drive the car based on the agreed upon conditions for the lease period. Once it is done, you’ll bring back the vehicle. You can also start a lease deal for a newer car.
Benefits of car leasing
There are many advantages of car leasing that make it a better choice than financing (PCP) or buying a car outright. For starters, leasing a car can be a great option if you don’t have a boatload of cash for a down payment.
Plus, when you lease, the monthly payment will likely be cheaper than finance. This is because you’re only paying for the car’s price depreciation during the lease period, rather than its full value. As a result, many are able to get higher-end cars that they may not be able to normally afford.
Leasing is also an easy option for people who want to drive something new every few years but don’t want to deal with the hassle and expense of selling their old car. Not only is the process super easy, but you also get to drive the car during its best years, i.e., the first two to three.
Warranty protection – Manufacturer’s warranty is included with your lease deals free of charge. Most leases let you drop your car off at the garage for no extra cost if something goes wrong.
Lower maintenance costs – breakdown cover often comes as part of the package (covered under manufactured warranty), servicing sometimes too if you included a maintenance package as part of the agreement.
No MOT required and Road Tax included – New cars do not need a MOT in the first three years of their life. Road Tax included as part of your lease agreement free of charge.
Free Delivery – Vehicles can be delivered straight to your home free of charge (mainland UK).
There are some car lease deals that allow you to end them early, as explained here ending a car lease early.
Personal Contract Hire
You’ll find these three words on many car-leasing sites and many call them a fancier term for ‘car leasing’. Just know that a Personal Contract Hire (PCH) is specifically a leasing opportunity for regular consumers, while a Business Contract Hire (BCH) includes car leasing options for businesses as well.
What you need to lease a car
So, you may be asking, “what do I need to lease a car?”. To make it short and simple, if you want to lease any sort of vehicle, you’ll need to have a good credit score. Then, you’ll also need to pay for a one-time upfront payment (deposit), the more you pay upfront, the cheaper your monthly payments will be.
Let’s say that there’s a vehicle that you’re interested in leasing. You’ll need to visit a dealership that offers leasing options for it. Then, you’ll negotiate the terms of the lease with the dealership. This includes factors such as the lease interval, the annual mileage limit, and the monthly expenses.
Conclusion
If you’re thinking about leasing a car, be sure to do your homework. Read the fine print in the lease agreement, and make sure you understand all the fees and charges. Compare offers from different leasing providers via our innovative leasing comparison to ensure you are getting a good deal.
Find car leasing special offers – Auto Lease Compare
Can’t decide on the perfect car lease deal? Auto Lease Compare makes the selection process a lot easier. Once you’ve picked a car, we’ll show you what the best car leasing options are for it. In this way, you will be able to get lower monthly payments which can save you thousands. Check out our latest car leasing deals.
To know more about why leasing is a better option than buying, see our ultimate leasing guide .
The decision between leasing or buying your new car can be a tricky one. There are so many different aspects to compare with each having its own pros and cons, it can be quite easy to get overwhelmed and confused.
The decision of whether to lease or buy a car is an important one that can leave you scratching your head. Luckily, Auto Lease Compare is here to help! This is your ultimate guide to leasing vs buying and by the end of this guide, you should be clued up and ready to make your choice.
How does car leasing work?
Car leasing, also known as Personal Contract Hire (PCH) or Business Contract Hire (BCH), is just like renting anything else. If you rent a house or flat, you pay a flexible deposit, then you use it for an agreed period paying a set amount each month. Once the contract ends, the property reverts back to the landlord.
It’s the same with vehicle leasing – you chose which brand new car you want, how long you want the car for (2, 3 or 4 years), what payment you can afford upfront (normally 1, 3, 6, 9 or 12 months initial payment) and how many miles you think you will drive. Then find fixed monthly payments that suit your budget. It’s a long term rental agreement so you won’t be purchasing the car, you simply return it at the end of the lease term and get another brand new one if you’d like. Simple and hassle free!
The process
1. Search for your perfect car
Compare millions of deals from top leasing companies to find the best price and package to suit your needs. You can compare lease prices quickly and easily here at Auto Lease Compare. Select the make, model, specifications and the payment which suits you and your finances.
2. Send an enquiry or call direct
Through our website, you can send an enquiry or call the leasing company directly (free of charge) to discuss all the details and agree on a personalised deal.
3. Finalise your contract and receive your car
Once you are happy, place your order with the leasing company. The leasing provider’s location doesn’t matter because they will do the hard work for you – vehicles can be delivered straight to your door (free of charge mainland UK) or collected.
4. Pay all your monthly payments and return the car
Pay a set amount each month, generally over 1, 2, 3 or 4 years (depending on the contract length of the lease agreement).
At the end of your contract, return the vehicle to the leasing provider then you can get a brand new lease car if you’d like to.
Is leasing cheaper than buying?
There are a lot of contributors to the overall cost of buying a car, whether this is bought outright or leased. These factors include (but aren’t limited to) whether the car you’re buying is new or used, how long you plan on keeping the car and if you have a good interest rate on your personal loan.
Buying the car outright does initially work out cheaper than car leasing but the depreciation of the car’s value can see you lose money when it comes to selling your car.
Buying a car outright is typically the cheapest option and you have full ownership of the car. However, buying outright isn’t a viable option for everyone and car leasing is a means of spreading out the payments into more affordable chunks.
With car leasing, you don’t need huge amounts of money to get behind the wheel of a brand new car which is a huge benefit of car leasing. When buying a car, it takes a longer length of time to save money before you can meet the purchase price or put down a deposit if you’re buying on finance.
Once you own the car after paying for it outright, you are liable to pay for any costs for unexpected repairs and maintenance and lose money in depreciation when it comes to selling the car in the future. With these factors considered, it can work out a lot more expensive than if you were to lease the exact same car.
Advantages and disadvantages of leasing a car
The debate of leasing vs buying a car is an important one and the advantages and disadvantages of leasing will definitely help you to make your decision.
Advantages
Cheap and hassle-free – You can drive a brand new car every few years which you never thought you could afford. Once the contract lease period finishes on your lease agreement you can get another brand new car – simple and hassle-free. There’s also no hefty financial loan from the bank to buy the car.
Fixed monthly payment and flexible initial payment – Fixed monthly payments, which are cheaper than buying a car on finance (PCP). You can also choose how much you want to pay upfront (normally 1, 3, 6, 9 or 12 months initial payment). You can also choose how long you want the car for – contracts lengths are normally 2, 3 or 4 years.
Warranty protection – Manufacturer’s warranty is included with your lease deals free of charge. Most leases let you drop your car off at the garage for no extra cost if something goes wrong.
Lower maintenance costs – breakdown cover often comes as part of the package (covered under manufactured warranty), servicing sometimes too if you included a maintenance package as part of the agreement.
No MOT required and Road Tax included – New cars do not need a MOT in the first three years of their life. Road Tax included as part of your lease agreement free of charge.
Avoid depreciation costs – Avoid deprecation costs if you were to buy the vehicle. This lowers the risk of owning a depreciating asset.
Free Delivery – Vehicles can be delivered straight to your home free of charge (mainland UK).
Disadvantages
You don’t own the car – When you lease a car you don’t have full ownership of the car as you’re just essentially renting the car.
You normally have to arrange your own insurance – An additional cost to the monthly payments you pay when leasing a car is the insurance that you’re legally required to pay and arrange yourself. We do sometimes however advertise deals with insurance included – these will clearly be tagged with ‘free insurance’.
There is a mileage limit – When leasing a car, you are capped at the mileage you agreed when signing the lease agreement. If you go over this mileage amount there are additional charges.
Advantages and disadvantages of buying a car
Advantages
You own the car – When you buy a car outright/on finance you own the car whereas with leasing you do not own the car.
No mileage restrictions – When you buy a car you’re not restricted to the mileage cap that you’re limited to when leasing.
You can sell your car anytime – If you’ve purchased your car outright, you’re the owner of that car and are free to sell it any time you like and aren’t tied to the car with a contract.
Disadvantages
The responsibility of tax and maintenance – When you buy a car, the car and everything relevant to the car is your responsibility including any maintenance, MOTs and unexpected repairs.
Depreciating value – When it comes to selling your car, the value will have depreciated, so you won’t be able to sell the car for nearly as much as you bought it for.
Monthly payments are usually higher than leasing – If you’re buying the car instead of leasing, the monthly payments are usually a lot higher if you’ve bought the car on finance.
Can Lease Deals Be Exited Early?
Car lease contracts can be exited early by applying for early termination.
Early termination is when a customer wishes to end their leasing contract before the end of their agreed contract length. With an early termination, there is a fee that is to be paid which is set and calculated by the finance provider.
Early termination is at the discretion of the finance provider and is not available on all contracts so this must be checked with your finance provider.
For more information on early termination, there is a useful page here.
Leasing vs Buying: The Summary
Both leasing and buying have their own advantages and disadvantages. Whether it’s most appropriate to buy or lease is dependent on your circumstances and finances. The final answer to the leasing vs buying a car debate comes down to you.
If your finances aren’t up to buying a new car outright, leasing is definitely the better option for you as the monthly payments are much lower for a brand new car, with lots of other advantages as referenced above.
However, one of the main disadvantages of leasing is that you never fully own the car. If you’re wanting to have complete ownership of your new car and not be restricted by a set mileage amount then buying is most likely the better option for you.
