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Why Lease?

As individuals we always want the best value and the newest thing. Leasing a car allows you to change your car every 2 to 3 years whilst enjoying lower monthly payments. Driving a new car gives peace of mind in regards to reliability and hidden repair costs. 

The typical British attitude is "I want to own my car". Unless you intend to keep the car for a long time, leasing is definitely the way forward. Over 2 to 3 years, leasing is cheaper than buying a car with a loan. After 4 to 5 years, the advantage slims right down. Long term, it’s cheaper to buy.

Leasing

Lease deals usually feature a deposit, these are usually equal to 3, 6 or 9 monthly rentals. Essentially, you’re hiring the vehicle for a period of time and pay a fixed cost based on the mileage you’re likely to cover. Higher the mileage, higher the payment. 

Most of the deals on our website are based on 8 to 10 thousand miles per year, however, 40 thousand miles per year for a corporate company car is not unusual. The lease can also include servicing and tyre usage. If the maximum annual mileage is exceeded, you will face further charges however the price per mile is fixed within the contract. 

If you find yourself covering more miles than originally thought, it is possible to amend your monthly payment to reflect the extra mileage. Leases typically vary between 12 and 48 months with 24 months being the new norm. Once the lease ends, the car is returned and you walk away.

Car Loan

Finding and arranging a car loan can be difficult, confusing and notoriously expensive. Car loan payments terms are often longer, normally between 3 to 5 years. Once the car loan has finished, you will own the car. However, the car will be worth much less and during your repayment period. 

You will be responsible for other outlays including and not limited to servicing, MOT, road fund license, tyres and other potentially pocket busting expenses such as failed gearboxes and electrical gremlins.

Car Loan Depreciation Example

Depreciation can be as much as 65% over a 3 year period. If a car was purchased for £20,000 and depreciates 65% over 3 years, the car will be worth £7,000. Total amount payable at 14.9% Apr. will be closer to £22980. That’s £5326 a year or a £443 month lease. 

Factors to include:

  •  Loan Setup Fees
  •  Loan Interest Fees 
  • Higher Road Insurance 
  • Servicing Costs 
  • MOT 
  • Extra Road Side Assistance 
  • Extra Fuel Costs (Less Efficient Car) 
  • Unexpected Repairs









Britannia Car Finance Ltd are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 619315

Registered in England & Wales with company number : 07078910 | Data Protection No : Z3637100 | VAT No : 159 9680 46

Registered Office : Britannia Car Finance Ltd, Westminster House, 10 Westminster Road, Macclesfield, Cheshire, SK10 1BX

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

Copyright © 2020 Britannia Car Finance Ltd, All rights reserved.

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