A lot has changed over the course of the last seven years.
We have all – as a nation – become more cautious. My generation – who had never known a recession before – found it a shock to the system to say the very least. We weren’t expecting it and we certainly didn’t quite know what to do about it when it came about.
Not initially, anyway.
We tightened our belts, worked hard and – if we were lucky – we came out of it still smiling.
But things will never be the same again when it comes to money and the way in which we view it and spend it. Gone are the days where car-ownership was king; we don’t want any more surprises. We want to know how much money our cars will cost us when it comes to parting with our hard-earned cash.
We don’t want unexpected service and maintenance bills. We don’t want to get ripped off by paying over the odds for used cars due to the current shortage of quality older vehicles.
Because of this, quite naturally, leasing has become a popular option. It is a sensible option and one that is no longer regarded by people as being the “cheat’s way” to drive a nice car. Many of those people (and companies) who previously turned their noses up at contract hire have been ditching the car loan and changing their view.
It most certainly isn’t a cheat’s way to get your hands on a good car – it’s a clever way to both fix costs and save money if you do it right.
Fix motoring costs and save money
So, how is it possible to fix costs and save money at the same time? Surely, leasing companies make money so it must be cheaper to buy a car, budget your costs properly throughout the course of ownership and sell it on for a realistic figure when you are ready?
Well yes, admittedly, of course leasing companies make money. But here’s the heads up as to how they can save you money at the same time:
- Leasing companies buy a lot of cars; these savings are often passed on to make the deal competitive
- Manufacturers’ bonuses and other incentives frequently form part of the deal, too
- If you take out maintenance, you will usually find that it is much cheaper to pay a monthly fixed-premium from the funder than choose to service and maintain the vehicle yourself. This, again, is due to the terms that they have the power to negotiate
- Residuals are strong and the cost of lending is the same – this means that some very keen leasing deals around right now
Tips on getting a good contract hire deal
Well of course, there are many advertised offers that don’t look quite as good when you get up-close. Choose your supplier carefully and check that they are on the FCA Interim Register.
There is one way to know if you are getting a good deal and that is to calculate the total that the same car is likely to lose you – CAP Automotive’s excellent Total Cost of Motoring website has a free online tool. Then, just tot up the cost of the monthly lease amounts that you have negotiated and compare the two.
A reputable leasing company like Compass Contract Hire Limited will be able to advise you on all aspects of funding and point you in the right direction to make sure that you get a great deal. For more information, call 02392 228070 or click here for a free of charge call back.
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