UKs Motoring

Car Leasing Makes Sense

The British public is in love with their cars, and there is nothing like that feeling of driving a brand new one. There is nothing quite like the feel of a new car; the fact that it has never been owned by anybody else; the smell of it too is quite amazing. Then of course there is the factor of street credibility. Although most of us will never admit it in public, we are part of a nation that really does like to keep up with the Joneses; preferably we like to keep a little ahead of them too.

It was Toyota who used that line “the car in front” and although Toyota is probably not in front at the moment, being in the car in front is something that appeals to our fundamental nature.

A problem with having the best car on the block, or if not the best one then one that people will take notice of, is that it an extremely expensive thing to do if we wish to buy it. Without going over the top, buying a relatively modest car is an expensive thing to do. Even a standard Honda Accord will cost us nearly £22,000 at the showroom. If we took out a loan to pay for it over a three year period it would cost us between £700 and £750 a month.

There is a solution though, and that is Personal Contract Hire. This is an alternative to purchasing a car in which we lease cars for a specific period and after that period return it to the company that we leased it from. If we look at how much it would cost to sort a Honda car leasing agreement, (we are using the online leasing price calculator that is available for free at www.frontierleasing.co.uk) then we can see that with a three year contract it would cost us only £400, a massive saving of over £300 a month.

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