This might be for you if you just can’t be bothered with all the hassle of car stuff like warranties, maintenance and servicing. Think of it like renting a DVD for a really, really long time – you pay your rental fee (in the case of car leasing, it’ll be every month) and then at the end of the rental period, you give it back – this particular type of lease is known as a personal contract hire (PCH) agreement.
A PCH plan will usually mean you have to pay three months’ rental in advance. Some plans will also include a maintenance package meaning you won’t need to worry about servicing or even car tax. When you hand the car back in you’re under no obligation to take out another PCH plan with the same dealer, you can just walk away and find another deal elsewhere.
You can also get a personal contract purchase (PCP) agreement which gives you the option of buying the car at the end of the rental agreement. If that’s the case, you’ll be asked to make a ‘balloon’ payment. These agreements usually require you to pay a deposit and you may be able to get similar maintenance packages available with PCH plans.
The one good thing that car leasing packages do share is that you don’t really have to worry too much about the car depreciating in value (although this could be a negative if you decide you want to buy the car at the end of a PCP scheme).
Well, you know that once you’ve decided how you will fund your car and, you’re going to have to insure it before you can drive it away from the dealer – we know, it’s a chore and we can hear you groaning from here. But at Comparethemarket, we’re here to make life simple, just tell us what you decided to buy and a bit about yourself and we’ll search deals from over 100 insurance providers to find the best deal at the best price, just for you.