Archive for the ‘Car Leasing Deals’ Category

Tune Up a Finance Deal on Your New Car

Friday, March 1st, 2013

When it comes to choosing a new car, there are always going to be many models which suit your needs. There are many excellent superminis, MPVs, luxury saloons and sports cars. Indeed, every niche will have you scratching your head and wondering which car is the best choice.

There are also many ways to pay for your vehicle and new car finance deals can also cause you a bit of trouble. Which is better — a personal loan, hire purchase or leasing? Each finance product has its pros and cons.
(more…)

70% of New Cars are Bought with Finance, Are You Prepared?

Wednesday, January 2nd, 2013

If you are planning on buying a new car in 2013 it is very likely you will be taking advantage of consumer car finance to fund the purchase. Data released by the Finance and Leasing Association (http://www.fla.org.uk) for October 2012 showed 70% of new cars bought in UK dealerships by private car buyers were part or wholly funded through car finance. With 1 million new cars set to be sold to retail customers in 2013 that is an awful lot of car finance!

Given the importance of car finance it is vital UK consumers fully consider their options including car leasing, hire purchase and car loan. Being clear on what you can realistically afford before starting your search for that perfect vehicle reduces the risk of disappointment when you do find the car you want.

(more…)

Leasing an Audi Q5 is the Best Finance Option

Thursday, March 24th, 2011

The Audi Q5 Sports Utility Vehhicle (SUV) is a compact crossover SUV which was  introduced in 2009. It is based on the new Audi Modular Longitudinal Platform which was first used on the Audi A5 coupé. The Q5 is Audis second venture into soft roaders and slots in under the full-size Q7. The Q5 is assembled in four different countries; Ingolstadt, Germany, Changchung, China, Aurangabad, Maharashtra, India and Shah Alam, Malaysia. We have yet to see if there is any difference in quality between these locations.

With prices starting at £27,980 for the 4×4 2.0 TFSI 180 Start/Stop and going up to £40,745 for the top of the range 4×4 3.0 TDI Special Edition, it stands to reason that most people will opt  for some form of car finance. (more…)

Finance an Audi Q7 – If You Want It, Lease It.

Wednesday, March 23rd, 2011

The Q7 is Audi’s first luxury Sports Utility Vehicle, with the first one rolling of production lines in Bratislava in Slovakia in 2005.

To start with, it’s an imposing machine, especially when seen with the optional fat alloy wheels, not just tinted, but darkened glass and elements of chrome trim. It kind of says, look at me, but get out my way!

It isn’t cheap either, from £40,975 for the 3.0 TDI up to  £100,320 for he flagship V12 6.0 TDi. As with all big 4x4’s depreciation is a big issue, so a Q7 is going to be pricey whichever way you look at it. Perhaps most people will get one on some sort of car finance package. As a small saving grace, Audi’s reputation for quality and the desirability of the Q7 makes them a decent option if this is the kind of car you want, especially the slightly more reasonable 3.0 diesels. (more…)

BMW X5 – The S.A.V. Where Car Finance Makes Sense.

Saturday, March 5th, 2011

The BMW X5, termed an S.A.V. (Sports Activity Vehicle as opposed to Sports Utility Vehicle) which BMW hope emphasises the cars on-road abilities. Which is about right, as the X5 is no real off roader despite it’s beefy looks. Chances are it’ll spend most of it’s time on city streets than in the mud. A good thing, as the best it could offer with it’s lack of off road ability is a muddy track.

If you’re thinking of getting a BMW X5, the best way to fund it is on a car finance package. This helps get round paying out a lump sum of over £45,000  of your hard earned cash or going for a pricey bank loan. (more…)

Car Finance Makes BMW 1 Series Affordable

Friday, February 25th, 2011

One of the popular choices people go for, especially on car finance, is the BMW 1 Series.

The  team at FinanceACar have spoken with a few BMW 1 Series drivers, and all of them have nothing but praise for them. One had already been through two M5’s, a 540, a 740 and various Merc’s and thinks his 130i is the best car he’s driven! People say it’s a small car, ok, it’s not the biggest, but if you can think back to the older 3 series (like the ones featured in a recent Top Gear show), it has more room, not to mention much better and safer handling! (more…)

Brief Summary Of The Benefits Of Contract Hire For Businesses

Tuesday, February 15th, 2011

Whether or not you are familiar with the benefits of contract hire and car leasing for businesses will most likely depend on the size of the business. This is the case whether it is owned by you or you are employed by the business. For example, if you own a business and you use your personal car for business purposes there are some large benefits that you are missing out on. Likewise if you are an employee using your own car for work purposes you could use salary sacrifice to cover the cost of your car whilst your employer funds it and you both take advantage of tax benefits.

Despite this, there are many businesses that have no idea of the benefits of leasing their vehicles using contract hire. The most appealing benefits for using contract hire is that a business can avoid as much as 100% of VAT – provided the car is used 100% for business and not personal reasons. If it is used for personal reasons then you will be able to avoid 50% of VAT.

In summary, contract hire is an ‘operational lease’ that allows a business to lease a company car by simply making a fixed monthly payment for a period that is typically between 2 and 4 years. At the end of the lease contract, the business returns the old company car and obtains a new car and a new lease contract.

In addition to the big VAT benefits the other advantages are:

• the business spends significantly less each month (as much as 60%) than it would need to spend on a loan or ‘hire purchase’ (it gets a ‘bigger bang for its buck’);
• there is no need to arrange or negotiate to sell the vehicle when a new one is required;
• there is no market value risk arising from the vehicle because it does not need to be sold in the open market at any point;
• the business can select the exact requirements online and have them delivered;
• it is certainly cheaper than ownership over the long term if the business needs to run and replace new vehicles more frequently than every five years or less;
• the business can include all costs of maintenance and services in the monthly price;
• the road fund licence will always be included for the first year of the lease contract and often for the life of the contract; and,
• vehicles can be kept relatively new and this promotes a positive, successful image of the business.

Given the above benefits, contract hire is also particularly useful for businesses looking to lease a van.

Three Ways To Reduce The Cost Of Buying A Car

Tuesday, November 16th, 2010

At some point all car owners have to think about upgrading their vehicle. It might be once every 15 years or it could be every 12 months – everyone’s needs and circumstances are different – but at some point an alternative or newer car will be required.

For those paying with cash, this won’t be a problem and they will often be able to walk into a dealership, pick the car they want and pay for it in full with cash. Unfortunately, this isn’t the case for 80% of people who buy their new cars using car finance. Their issues are that they have to opt for a car that’s affordable whilst being practical and suited to their needs. They should shop with the mantra of finding a car that fulfils their needs and not only their wants (ie; look and fell). As we all know, the price of a new vehicle is always expensive – it is sometimes the second biggest purchase that people make in their lives. Therefore, if you’re looking to obtain (not necessarily buy) a new car and want to reduce the amount of money you spend on the finance for that car each month, you should consider the following five simple steps.

1. Consider car leasing (contract hire for a business or personal contact hire for an individual). You need to ask yourself, do you really need to own the car? Is it an absolute necessity that you have your name on the log book? Is owning the car a ‘need’ or a ‘want’. If ownership is just a ‘want’ then you should be aware that leasing a car is as much as 60% less per month than buying it with a loan. This is now being recognised by many consumers and for the first 6 month’s of this year 57% of all car finance provided by dealers were via leasing contracts.

In addition to cost savings per month, the advantages of leasing allows people and businesses to obtain a new vehicle every two to five years without needing to pay for the cars in full, as they simply make a monthly payment. At the end of the period there is sometimes an option to buy the car and if you don’t want to buy it you simply return it and get a new one (no need to fuss around with a part exchange or sale). The additional benefits of leasing for a business is that a contract hire agreement can allow a business to avoid as much as 100% of VAT.

2. Negotiate on price – It is a known fact that most people do not enjoy negotiating with a dealer when it comes time to buy a new car. In fact, a recent survey suggests that 45% of British people don’t negotiate on car price at all. If the car isn’t already marked as a ‘special’ then it is likely that the dealer has some scope to negotiate and you should always make a lower offer.

3. Shop Around Based on Monthly Payment – 90% of all car buyers use the internet to research the car that they want and to find out what might be the best price. Once they have this information, they typically approach a dealer within 5 miles and see what is the best price that they might get on the actual cost of the entire car. If you are a buyer that is likely to use finance, then you should be shopping based on a monthly payment and total payment across the finance contract period.

Can’t Get The Car You Want Within Your Budget? It Could Be Time To Consider Car Leasing

Friday, November 12th, 2010

Car buying can be an extremely exciting time, as you get to drive around numerous dealerships and try out a variety of different cars until you find the one that feels right and is great to drive. However, it can also be a time that’s annoying and to a certain extent, upsetting, as you struggle to find a car that fits your individual circumstances – and budget – whether you like the actual model or not.

There is always the opportunity to buy the car on a finance agreement, but even this can mean that you have to settle for a car that you don’t actually want but have to get because it meets most of your needs. However, whilst there isn’t a much you can do about car prices – even once you’ve haggled with the salesperson to reduce the price it can be still be more than what you were looking to pay – there is something that you can do in terms of the way that you buy the car and it’s something that you’re not likely to have considered previously.

Car leasing was once a way to obtain a new car that was carried out almost exclusively by large businesses. It allows companies to obtain a car without actually paying the full price. The way that car leasing works is simple and in it’s most basic form is just a case of one person leasing – or hiring – a car off a leasing company, paying them a monthly fee and handing the car back to the owners once the lease agreement has finished. Depending on the type of lease,  it can be like one long car hire contract (eg; personal contract purchase), it’s been the perfect solution for getting company cars for years, as it means that the business doesn’t have to pay out the entire cost of the car and they can avoid up to 100% of VAT.

So how does this benefit an individual car buyer who can’t afford to buy a car?

Car leasing has become particularly popular amongst non-company car buyers in recent years. In fact, the Finance & Leasing Association recently stated that 57% of all car finance contracts provided by dealers to individuals in the UK in the first 6 months of 2010 were done with leasing contracts. Car leasing is growing in popularity because it is cheaper than buying with a loan (which requires you to repay the full amount) and is a lot less onerous – for example, at the end of the lease contract you hand the car back and get a new one and don’t have to worry about selling your old vehicle.

It is cheaper than car buying because you don’t actually own the car and you don’t have to pay for its full value. For example, if you buy a £20,000 car with a loan, over 4 years you could end up paying around £610 per month and with leasing the same car could cost as £350 pounds a month.  For a £10,000 car it could be as little as £150.

And if you want to actually buy the car?Simple – most some leasing agreements give you the option to pay an agreed amount of money (a ballon payment) once the lease has finished which will act as a final sale payment, meaning the car will be completely yours.

Car leasing may not be something that you’ve looked into in any great depth in the past, but if you have a good credit record and you’re considering buying a car and can’t afford to do so outright with cash or you want to avoid paying large monthly payments car leasing maybe an alternative for you. However, before signing any agreements always be sure that you have shopped around and compared deals based on the same terms (same contract period, mileage etc) and be sure that it is correct for you and that you fully understand the lease contract. Also, be aware of the disadvantages of car leasing such as the fact that there is a restriction on the number of miles you can drive per month and if you exceed the agreed amount you may have to pay an excess mileage.

What To Look Out For When Buying A New Car

Tuesday, October 26th, 2010

Choosing a car is time consuming and stressful. There are so many factors to consider like how often will you use it, the running costs and simple factors such as do you want a 3 or 5 door car. Once you’ve made the purchase, either through having spent your savings or using car finance, you’re stuck with your choice, making it vital for you to choose the correct car for you according to your future potential needs.

When buying a new car, there are a lot more options available than previously existed, so it is recommended that you read up on the model you are thinking of buying. This is because some options that were available earlier on a certain model may no longer be available or might have changed. For example, you might have been able to buy a car with no digital options whereas now you can get Bluetooth and satellite navigation installed.

If you are buying a used car you have to be careful. Buying a new car is generally seen as a safer option as there is a warranty and no hidden risks. Although when you buy a new car and if you are using car finance make sure your finance is provided via a creditable source. One source of car finance is car leasing that allows you to pay on a monthly basis for the use of the car and when the contract ends you either return the car to the finance company or you can buy it yourself.

It is well known that car salesman make most of their income through commission, so it is their interests to get you to spend as much as possible when making your purchase. They will want to get a maximum return on the sale and generally selling additional services is one way for them to increase this. Of course some people do actually want optional extras in their car such as Bluetooth connectivity or having an integrated sat nav system but most of the time it’s the pressure of the salesman that makes them think they need more than they actually do. To avoid this, set a budget of how much you are willing and able to spend on a new car and don’t go above it, no matter how much pressure the salesman puts on you.

An even better idea is to use reverse psychology and make it seem that you are offering the salesman a deal. If there is a car available that you like, ask him if he can add any extras for free or haggle the price down a bit and if it’s a sensible and reasonable offer he will accept it as he will get some form of commission in any case. If you are purchasing your car using car finance then try to negotiate down the monthly rate to give yourself a significant saving.