| As the popularity of contract hire continues to grow, | | | | 12-13000 miles in a year then you will find yourself |
| more and more people are opting out of company | | | | caught between two options. |
| car schemes in favour of leasing a vehicle on a | | | | This is where the excess mileage comes in to play. |
| personal basis so they can benefit from the many | | | | This means that at the end of the contract you will |
| great special offers available and have a choice in | | | | pay a certain amount for each mile you have |
| what they drive. | | | | exceeded. This can range anything between 3 pence |
| Car leasing is no longer just for business users running | | | | per mile to 20 pence per mile, or more, depending on |
| fleets of vehicles but a viable option for the general | | | | the vehicle and the lender the contract is with. |
| public to acquire a brand new car for a low monthly | | | | When faced with this situation of being caught in the |
| rental with no risk of depreciation. | | | | middle, the cheapest option is to find a deal for the |
| With this in mind there are many people now turning | | | | lesser mileage (in this instance 10000 miles per year) |
| to car leasing with little or no previous experience, | | | | with a reasonable excess of somewhere between |
| and with 1000's of deals being advertised on the | | | | 3-7 pence per mile. |
| internet everyday from 100's of different brokers | | | | Doing this will mean you will only be paying a small |
| how do you know which are right for you and what | | | | amount for the extra mileage you do use and |
| to look out for? | | | | nothing for the extra mileage you don't, because if |
| That is what I attempt to address in this article to | | | | you were to take the vehicle on 15000 miles per |
| educate you in some general tips to help in selecting | | | | year basis and hand it back with 13000 miles on then |
| a better leasing deal and not fall into some of the | | | | you would still have paid in advance for the extra |
| more common pitfalls that can cost you. | | | | 2000 miles, even though you haven't used them and |
| 5 Tips to Better Leasing: | | | | there is no rebate at the end. |
| 1. Beware of early termination penalties | | | | 4. To Maintain or Not To Maintain |
| The length of the contract is the first thing you need | | | | When you lease a vehicle on contract hire you will |
| to decide on before looking for a leasing deal. | | | | often be offered an optional maintenance package as |
| Generally contract hire deals are based on either 24 | | | | an additional extra. |
| month or 36 month agreements although contracts | | | | This will usually cover you for the cost of your |
| from 3 months to 60 months are possible. | | | | routine servicing, breakdown cover and any tyres |
| As a general rule of thumb the longer the lease is, | | | | that need replacing due to wear. |
| the cheaper the monthly rental will be, although with | | | | Whilst this is appealing to some for the peace of |
| some of the special offers that are available this is | | | | mind it gives you need to be aware that there is of |
| not always the case and quite often you will find a | | | | course a cost for the service and that the leasing |
| car that works out less on a 24 month lease than it | | | | companies do make a profit out of this, so it would |
| does on a 36. | | | | naturally be cheaper to look after the routine |
| The important thing is to decide on how long you | | | | maintenance yourself. |
| want to keep this car for and do not agree to a | | | | As well as the extra monthly cost of a maintenance |
| lease any longer than that. | | | | contract they also carry there own excess mileage |
| There are a few leasing brokers out there who will | | | | charge, which can sometimes double the overall |
| try steering you towards a longer contract, in order | | | | excess mileage you pay. |
| to get the rental for your chosen vehicle down, but | | | | On most new cars now the service intervals are |
| this is something you should really be cautious about | | | | longer than they used to be and many use smart |
| because most contract hire agreements come with | | | | servicing systems that reward careful drivers, by |
| very steep early termination penalties, some times as | | | | increasing the miles before a service is due. |
| much as 50-70% of the remaining rentals which | | | | All new cars also come with a full manufacturers |
| means if you hand your car back early you could be | | | | warranty and quite often with there own break |
| paying a lot of money out for nothing. | | | | down cover included as well for the first 12 months. |
| 2. Don't Be Too Specific | | | | 5. Be Aware Of Hidden Fees |
| Every week there are hundreds of fantastic contract | | | | Always be aware of any additional charges on a |
| hire offers available which result in monthly rentals as | | | | lease by asking the broker upfront about them, as |
| much as £100 per month cheaper than they | | | | many do not advertise these cost's on their |
| would be were they not on offer. | | | | websites, leaving you to find out about them in the |
| It is for this reason why you should avoid being too | | | | small print of the contracts. |
| specific, because if you narrow your choice of vehicle | | | | As a rule delivery to anywhere in the UK mainland |
| down to an exact model and derivative and then an | | | | should be free and the majority of deals do not have |
| exact colour choice in that derivative, the chances of | | | | any administration or documentation fees associated |
| finding it on a special offer are slim unless you are | | | | with them. |
| extremely lucky. | | | | This is however not the always the case and some |
| I'm not saying you shouldn't look into that model, just | | | | lenders do charge a small administration fee of |
| keep your eyes open to other possibilities whilst you | | | | anywhere between £75-£150. |
| do, as you will most likely find an equivalent vehicle | | | | Whilst this is perfectly acceptable, especially if it is a |
| you haven't yet considered on special offer | | | | special offer you are saving thousands of pounds on, |
| somewhere, saving you hundreds or even thousands | | | | the leasing broker should make you aware of these |
| of pounds over the length of your contract. | | | | costs upfront and they should NEVER ask for this |
| The best way to approach this, would be to sit | | | | fee to be paid directly to them. |
| down and write a list of the requirements you have | | | | Whenever paying money out on a lease, be it an |
| for a vehicle, as well as a short list of preferred | | | | administration fee or the initial rental amount, the |
| manufactures and then use that as a starting point | | | | money should always be paid directly to the leasing |
| to find the best deal, always keeping your eyes | | | | lender and never to the leasing broker, so be wary |
| open. | | | | of any that ask otherwise. |
| There are many on-line directory's to help you with | | | | I hope you have found this guide to better leasing |
| this, some of which I have provided you with a link | | | | useful and wish you luck in finding a great deal on |
| for at the bottom of this article. | | | | your next car. |
| 3. Check the Excess | | | | To get you started there are a few websites I |
| When you sign up to a contract hire agreement you | | | | would recommend to help you search through the |
| choose in advance the number of miles per year you | | | | deals available from different brokers on-line: |
| are likely to do in the vehicle and it is this that is used | | | | - is the number one contract hire and leasing website |
| to calculate how much the monthly rental will be. | | | | in the UK boasting over 100,000 contract hire offers |
| Whilst it is possible to be specific with your annual | | | | from a large number of leasing brokers. |
| mileage, a lot of special offers advertised will only be | | | | Buyyourcar.co.uk - similar to this site also offers many |
| available in increments of 5000 miles per year (most | | | | special contract hire offers from different brokers to |
| commonly 10, 15, 20, 25 and 30,000 miles per year), | | | | search through as well as prices for new and used |
| so if you estimate your annual mileage to be | | | | vehicles too. |