We take a look at how to get car finance deals on contract hire, contract purchase and leasing, and tips and tricks for the best deal.
Using a broker is a great way to find out what’s available as they have access to hundreds of deals on lease cars from a range of different companies.
While it’s wise to do your research online first, a broker may have access to even better details or different options to suit you all under one site.
Type of finance
The main types of finance are: contract hire, contract purchase and Leasing.
Contract hire means that you pay monthly instalments and after the last payment is made, you own the car.
A contract purchase brings low monthly payments and the option to buy at the end. You can change cars often and get some cracking deals.
Leasing also brings low monthly payments and makes it easy to change cars regularly but you never own the car.
Most experts these days don’t recommend hire purchase as you end paying a lot more than through Leasing or Personal contract purchase.
Time of the year
New car registration dates are 1 March and 1 September and insiders will admit that there’s always a rush to get as many deals done as possible before those dates. People love a new reg plate but if you prefer a great deal, try having a conversation with a supplier in February or August.
Overall, a good time to lease a car is shortly after the model is introduced. That’s when the residual value will be the highest, which equals lower monthly fees.
As part of your leasing deal, you’ll have a strict mileage limit to stick to. You need to be realistic about the miles you do each year before you sign a deal because going over can cost you. So if you’re whacking through 60,000 miles a year, you might want to think again about Leasing – but if you love a smart new motor and don’t do too many miles, it’ll be right up your street.
Talk to your car leasing company or broker about exactly what you’re looking for from your contract. Decide what length you want your contract to be and understand your mileage restrictions and potential penalties. You’ll also be obliged to take good care of the car and will have to pay for any significant repairs. If you want to return your car before the end of the contract, you’ll probably have to pay a penalty.
Most leasing arrangements also give you the option of taking up a maintenance contract. This is a great way of saving both time and money when it comes to maintaining your lease vehicle. As well as covering regular servicing, a maintenance contract also takes away the worry associated with unexpected and expensive maintenance costs in exchange for a fixed monthly fee.
Every broker has a limited allocated stock that may not get replenished. So when you are checking the deals look out for the “in stock” marker as not all cars will be available otherwise you may just get disappointed in the end.