How Does Vehicle Leasing Work?

By Libby Foster
How Does Vehicle Leasing Work?
If you're looking for the best value way to drive a brand new vehicle, then vehicle leasing might be the right option for you. Vehicle leasing is a pretty straightforward way to drive a brand new car. All you are doing is paying monthly rentals over a specific period instead of buying it. And when you think about it, what makes the most sense? Paying a monthly rental based on how much use to get out of the car. Or paying out tens of thousands of pounds all in one go? But there are some important things you need to know before you consider leasing a vehicle. 

What is a Vehicle Lease?

Vehicle leasing is an agreement between a lessor (the business that owns or buys the car) and the lessee (the person who will pay to borrow the car). When leasing a vehicle, the monthly rental will be calculated based on the vehicle's depreciation, which is the difference between the vehicle's current value and what it will be valued at the end of the lease rental, plus any fees or interest. Depreciation is calculated on your anticipated mileage and how long you would like to have the vehicle for. This is why at MWVC we describe leasing as paying for how much you use the vehicle!

The benefits of Vehicle Leasing

There are several reasons why leasing a car has more benefits than buying a car outright. Lease rentals are generally lower than monthly loan payments, assuming you are comparing leasing to financing for a vehicle. Also leasing a vehicle may require a smaller down initial rental as opposed to purchasing a car with a loan. At MWVC you can put as little as one month down for an initial rental. 

Another benefit is being able to drive around in a brand new vehicle that is better value for money. At MWVC all our vehicles are new and have never been driven before, meaning the first three years of the lease you will not have to pay for MOT. Also at the end of the contract hire agreement, you don’t worry about selling or trading in the vehicle. Most importantly, monthly rentals never change, once you agree to a set price it will remain at that until the end of the lease. 

Is Vehicle Leasing Right for You?

The decision on choosing to buy or lease a vehicle can be a difficult one; you will need to consider the advantages and disadvantages of both options. Leasing offers better value for money for those who want to be driving a new car. Here at MWVC, we currently have the Vauxhall Corsa Hatchback 1.2 SE Edition on special offer, with leasing starting from as little as £162.98 per month (inc VAT)*. Vauxhall is constantly finding new ways to adapt and change to fit with the times, and its new infotainment system is no different. The new Corsa’s display is a lot more user-friendly, with a light-touch screen and convention buttons for changing menus. Not only does it look impressive but it also has a great engine, making it the perfect first-car or upgrade. 

How to Lease a Vehicle 

If leasing sounds like it might be something you are interested in then here are some of the things you need to consider before you get started. Firstly, check your credit score to see if you are likely to qualify for vehicle leasing. After you have done this, determine how much you can realistically afford to put down for the initial rental and how much you can afford to pay each month. Don’t forget to calculate insurance, fuel and any other additional expenses into your budget. It is also important to consider your driving habits and how many miles you expect to drive a year to determine your annual mileage. 

Here at MWVC, we have plenty of deals on offer to suit everyone's needs when it comes to choosing the right vehicle for them. Whether you are looking for a personal deal or a commercial vehicle to lease, our expert sales team can advise you on the best deal for you. Still, wondering if vehicle leasing is the right option for you? Give us a call on 0116 259 9548, and a member of our team will be happy to assist. Follow us on Instagram to stay up to date with all our latest offers.  

*All pricing is correct at the time of publishing.