01

Contract

The main reason for this reluctance to lease is usually the lack of knowledge of the benefits of leasing and the confusion caused by the terminology that surrounds it. The Guide to Contract Hire and Leasing is here to help. >>>
02

Business

This is the solution for companies who want to concentrate on their core business activities, while avoiding the financial risk and administrative burden of owning their vehicle fleet. >>>
03

Personal

This is the solution for private individuals and is becoming more popular amongst car users. Key features and benefits include: >>>

What cars are best for leasing?

There are numerous factors in determining a good lease car. Seasonal factors, supply and demand of cars, the wider economy, and a car’s residual value, are just some of the factors to be aware of which can affect the contract hire and leasing market in the UK.

All popular makes and models are available in the personal lease market but a good rule of thumb is that the models which depreciate the slowest (i.e. will lose as little value as possible over the term of a lease agreement) will be the most attractive in the market. Historically this has lead German car makers, such as Volkswagen, Audi, BMW, and Mercedes-Benz to be very popular however any model which retains value will be very competitively priced.

The Best Business and Personal Deals from Vehicle Contracts

Auto Industry Round-Up

BMW launches a raft of new models
A Number of new models have been added by BMW to its various ranges and include the 520d EfficientDynamics saloon, the Z4 sDrive20i and sDrive28i and the 6 Series Coupé. The 520d EfficientDynamics saloon is powered by a 184 bhp engine that delivers combined cycle fuelp economy of 62.8 mpg and has carbon dioxide emissions of 199 g/km. The model costs £30,435 on-the- road.

The Z4 sDrive20i and sDrive28i herald a new entry points to two-seat sports car ownership of BMWs. The sDrive20i is powered by a 184 bhp engine returning 41.5 mpg on the combined fuel cycle and emissions of 159 g/km, while the sDrive28i is powered by a 245 bhp engine with identical fuel economy and emissions figures. The sDrive20i costs from £29,480 and the sDrive28i from £33,645. Now in its third generation, the new 6 Series Coupé features a sweeping coupé roofline, long bonnet, short over-hangs and set-back passenger compartment.

Initially, the model comes with a choice of two turbocharged petrol engines - the 650i is powered by a 407 bhp unit and the 640i by a 320 bhp powerplant - and a twin turbocharged diesel powerplant, which is powered by a 313 bhp unit. Range prices start from £59,565 for the 640i SE Coupé.

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Buy Versus Lease - the benefits of car leasing

If it appreciates, buy it. If it depreciates, lease it.

It is worth bearing in mind the famous quote of billionaire oil tycoon J.Paul Getty ; 'If it appreciates, buy it. If it depreciates, lease it'. This quote, in a nutshell, encapsulates the main benefit of car leasing. A car is not like a house which usually appreciates in value after purchase,whereas, when you drive away in your brand new car it is already losing value. If you take out a car loan or car finance agreement to purchase a car you are simply paying a set amount a month for something that is losing, not gaining value. In simple terms, you are buying a product which is depreciating in value not only every time you drive it but also when it is sat on your drive. Leasing is a different proposition for drivers, instead of owning the vehicle, the driver is pays a monthly amount to use that vehicle over a set period of time (typically 24 or 36 months). At the end of the agreement the car is taken back by the leasing company.

Finance Options

What makes up a lease payment?.

A handful of very large leasing companies supply most of the contract hire and leasing market in the UK with cars, these companies purchase hundreds of thousands of cars from the manufacturers each and every year so they can negotiate large discounts. The lease price of a car is made up of the difference between the initial purchase price and the car’s estimated residual value (future value) at the end of the lease agreement, with mileage and condition also taken into account, as well as VAT and a profit element. So, if a car loses less money and has a lower mileage, it's residual value will be higher and therefore will cost less to lease. .

Car finance, the main options.

Typical Hire Purchase agreements include a large deposit element, usually between 20% and 50%, with the balance of the car’s price paid over the life of the HP agreement. At the end of the agreement the car is the property of the driver, however the now used car will be worth much less than the original purchase price due to depreciation. .

A relatively new car finance option is the Contract Purchase (PCP) deal. Here a car drive can put down a lower initial deposit, in comparison to HP, and pay a lower monthly repayment. At the end of the agreement the driver has several options ' hand the car back for free (subject to mileage and condition), pay the final payment and take ownership of the car, or take out a new PCP agreement on a new car.

Car leasing typically has the lowest deposit of the three main finance types, followed by a fixed set of monthly payments that are directly related to the residual value at the end of the agreement. The larger the residual value, the lower the monthly payment.

A Number of new models have been added by BMW to its various ranges and include the 520d EfficientDynamics saloon, the Z4 sDrive20i and sDrive28i and the 6 Series Coupé. The 520d EfficientDynamics saloon is powered by a 184 bhp engine that delivers combined cycle fuel economy of 62.8 mpg and has carbon dioxide emissions of 199 g/km. The model costs £30,435 on-the- road.

The Z4 sDrive20i and sDrive28i herald a new entry points to two-seat sports car ownership of BMWs. The sDrive20i is powered by a 184 bhp engine returning 41.5 mpg on the combined fuel cycle and emissions of 159 g/km, while the sDrive28i is powered by a 245 bhp engine with identical fuel economy and emissions figures. The sDrive20i costs from £29,480 and the sDrive28i from £33,645. Now in its third generation, the new 6 Series Coupé features a sweeping coupé roofline, long bonnet, short over-hangs and set-back passenger compartment.

Initially, the model comes with a choice of two turbo-charged petrol engines - the 650i is powered by a 407 bhp unit and the 640i by a 320 bhp power-plant - and a twin turbo-charged diesel power-plant, which is powered by a 313 bhp unit. Range prices start from £59,565 for the 640i SE Coupé.

MORE than 18,000 road crashes in Britain last year were caused by snow or ice, latest Government statistics have revealed.

A total of 15,479 car accidents were attributed to snow or ice on the roads, while 927 light goods vehicles were involved in accidents under similar conditions, according to Department for Transport data. That poses a huge threat to fleets, especially as the first snow has already fallen in the UK this winter, says ATS Euromaster which is reminding businesses that they must prepare for difficult travelling conditions and the record low temperatures expected by long-range forecasters.

Peter Fairlie, ATS Euromaster's group sales director, said: 'The accident figures speak volumes and it shows that you cannot be too prepared when it comes to the winter months. Cold weather tyres [also known as winter tyres] are a simple and cost-effective way to ensure your fleet stays safe and mobile during the winter - not only when driving on snow and ice - but as soon as the temperature drops below seven degrees Celsius.

'It makes good business sense to be prepared, but people need to start fitting their cold weather tyres now. A company's productivity and financial security - not to mention their staff's safety - could be jeopardised if they delay.

EMPLOYEES entering car salary sacrifice schemes are more conscious than ever of their green responsibilities and definitely more aware of the positive benefit-in-kind tax implications of opting for cars with lower carbon dioxide emissions. That's the view of Roddy Graham, commercial director at the Leasedrive Group, following an analysis of more than 3,500 cars supplied under its salary sacrifice car scheme, mycar. The analysis revealed that:

It will be winter all year round for British Gas after the UK's leading utilities provider completed a successful trial of Continental winter tyres on its car-derived vans. Following the extreme weather conditions experienced in 2009, British Gas took the decision to fit 120 of its Volkswagen Caddy vans with winter tyres to ensure its vehicles stayed on-call and on the road last winter.

Colin Marriott, general manager, fleet, at British Gas, said: 'The safety of our drivers and engineers is a top priority at British Gas, as is maintaining our high standards of customer service. 'We wanted to make driving in cold weather as safe as possible and if we can negotiate the icy roads then we can get to site and fulfil customer needs when they need us most. We have received very positive feedback from our drivers regarding the performance of the Continental winter tyres, especially in the snow. Our engineers have commented that they were able to complete a normal full day's work even in the most adverse conditions.'

The trial took place in and around British Gas' operational area of the Scottish Highlands and Peak District. The front-wheel-drive vans in the Highlands were fitted with winter tyres all-year round, while those in the north of England ran Continental's winter tyres only during the colder months. Marriott said: 'When snow blanketed the UK in January the Continental winter tyres really proved their worth and in some cases the front-wheel-drive Caddy vans outperformed 4x4 vehicles fitted with standard tyres. In future British Gas vans all over the north of England and Scotland will be fitted with winter tyres all year round.'

Tom Whittaker, car and van fleet manager at Continental said: 'It's important that all fleets begin to plan for the winter season now by putting in their orders for winter tyres leaving it until the first snow fall will probably be too late. We are forecasting a significant increase in the take-up of winter tyres for the forthcoming cold season. More and more businesses are looking at solutions to stay operational and safe on the roads during extreme weather conditions.