It would appear that a considerable number of people don’t actually know how car leasing works, so to help you decide if leasing is the right option for you, here’s a quick rundown of the basics.
Generally, leasing is the process of paying for and using a vehicle without having to own it or pay the full purchase price. Contract hire is very similar, with the only real difference being that the contract will usually run for a set amount of time.
Your first action when it comes to car leasing would be to decide on the type of vehicle you need, depending on what you need it for (so you need to take into account purpose, space, engine size, etc). You would then need to specify any contractual requests, such as length of contract, upper fee, etc.. Generally speaking, once you have specified the type of car and contract you want, you’ll then be expected to read and sign a financial agreement. Obviously something like an Audi contract hire is going to cost more than a basic Ford, so you’ll need to keep price in mind when you’re choosing your car.
You’ll normally then have to wait for a little while until the credit company makes a decision on your financial status, which doesn’t usually take too long. Their decision will be based around your previous credit score & history, your job, current financial position, previous employment, etc..
Should you be approved for finance, you will then be expected to exchange documents, sign any necessary forms and take possession of your chosen vehicle. Usually you will not receive access to your selected vehicle until all financial paperwork is completed and properly exchanged.
Once the contract has come to an end, you’ll have the options of renewing it, beginning a new agreement with a different vehicle or simply returning it to the dealership. When you do come to return the car, make sure you’ve followed all the obligations in the contract correctly and that you’ve returned it in at least the condition you took it in.
