The New Year is an ideal time to freshen things up – maybe the house, your diet, even your car. It’s possible you just feel like a change, or maybe your current vehicle’s giving you a bit of trouble – perhaps you’re planning a car finance deal in time for the number plate change in March. In any case, you’re in luck since manufacturers also tend to see this as the perfect time of year to preview and launch new releases.
In a time when belts are still tightened and after an always-expensive festive period, it’s a relief to know that a car trade up doesn’t have to dent your wallet too much. There are plenty of different payment options open to you, many of which make paying for your dream set of wheels a lot less stressful too.
If you’re prepared to shop around, there are more affordable means out there than simply going to the dealership and picking out the car you’re after. Various car finance packages, for instance, could provide the perfect way to get you driving your perfect car on a budget that suits you.
Over one in two people in the UK use car finance deals to pay for their new motor. There are very few people who can pay cash upfront these days, so car finance is a great way to pay for a car on attractive and affordable terms.
Car leasing has become one of the most popular forms of car finance in recent years. When you look at all the advantages it has to offer, it’s easy to see why car leasing has become so popular. If you fancy a car with a premium badge, like an Audi or BMW, car leasing arrangements are designed to bring them within your budget. In fact, car leasing makes them so affordable that they monthly payments are often 40 to 50% cheaper than if you opted to buy them using a term loan.
Another advantage of car leasing is the flexibility it offers the customer. Agreements usually run between three or four years with a flat, low monthly repayment. Most cars have a warranty which lasts as long as the lease period, meaning that servicing is free, and when the lease period is over you just hand back the keys and pick up the latest model.
The advantages of car leasing are open to business users too under a contract hire package. There are plenty of benefits of contract hire agreements for businesses, such as being classified as ‘off balance sheet’. The monthly payments can offset against taxable profits, reducing the tax bill of a business overall. If the company is VAT registered, it can reclaim 100% of the VAT back if the cars they lease through contract hire are used exclusively for business use, or 50% if they’re used privately as well.
So, if you’re in the market for a new car for personal or business use, be sure to shop around and find the best car finance deal to suit your needs.
Tags: car finance, car leasing, contract hire