Car Leasing Deals
Traditionally in the UK we have tended to buy cars outright and then run them into the ground. That has changed in the last few years so that most people buy cars on some form of finance, and there are some good car leasing deals available. The main kinds of finance are Personal Contract Purchase (PCP), and leasing also known as Personal Contract Hire (PCH).
These forms of finance both tend to come to be nearly the same thing for a driver who wants to change their car regularly. In both cases, there is an upfront payment and then a regular monthly payment and the term of the contract will typically be 3 years. It’s much like a mobile phone contract.
With a PCP you can keep the car at the end of the contract (by paying a larger final payment). With a lease you generally give the car back (though there are even exceptions to this). If you plan to upgrade at the end of the term, they basically come to the same thing. They are both a form of long term car rental (though there are some pros and cons). Therefore people may talk about car leasing deals and actually mean PCP deals or PCH/lease deals. Really they are just looking to get into a new car for a low monthly payment – which is what we do.
Electric Car Leasing Deals
What’s interesting to note is that car leasing deals work really well with electric cars like the BMW i3 or VW e-Golf. They save you a lot of money on fuel (a fill up is typically about £3). Plus the fixed term contract means you get to upgrade your electric car every few years. So it’s just like upgrading to the latest iPhone 7 or whatever rather than being stuck with old technology.
With an electric car that means every few years you’ll get a new car with longer range and better performance. Yet they remain cheap to run and you don’t pay road tax (and often get free parking).
If you’d like us to work out how much money you can save with a cheap car lease on an electric car, try out the Fuel Included ‘total cost of ownership’ service.
If you just want to see how much an electric car would cost – and in many cases with the first 10,000 miles of fuelling included – take a look: