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The attraction of personal lease deals

PERSONAL lease deals are on the rise. And with good reason, reports Anthony K Vehicle Leasing’s Robert Nugent. They give flexibility and good value. So isn’ it about time you thought about moving away from owning a car – and taking out a personal lease instead?
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Personal leasing: are you enjoying the benefits?

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7 July 2009

Businessman with a personal car lease deal
Personal leasing: are you enjoying the benefits?

PERSONAL lease deals are on the rise. And with good reason, reports Anthony K Vehicle Leasing’s Robert Nugent. They give flexibility and good value. So isn’t it about time you thought about moving away from owning a car – and taking out a personal lease instead?

LEASING companies cannot have failed to see a shift in the market place in personal leasing arrangements. A few years ago a definite increase in Employee Car Ownership Schemes was responsible.

This time it seems the car for the school-run, the car for doing the shopping, and the car for occasional business use are also being funded away from traditional outright purchase, bank loans or hire purchase agreements.

We’ve seen a distinct change in the market place.

It’s no longer ex-company car drivers looking for a different way of going about their busy, high mileage jobs. Today’s customers are more regular consumers. They are moving from old cars to new. And tending towards lower mileage, fuel-efficient and environmentally friendly vehicles.

I think some of this new-found popularity is due to ‘pub-talk’ – not new products that push the popularity of various funding methods.

The attraction of personal lease deals

Friends or colleagues can easily explain the flexibility to buy the car at a price written in to the contract. Or, simply arrange for the car be picked up and taken away at the end of the contract. It seems to take people’s interest. This is a simple way of explaining the benefits of a Personal Contract Purchase (or PCP).

In the same vein, someone else may mention that they have found a deal which is the same price as that given to a large fleet. All they have to do is just add the VAT and include Road Fund Licence, delivery and a predicted mileage to get their monthly lease rental.

All that’s required is to insure the car and pay for fuel. After two or three years the car is returned and they will simply start again. That friend has just sold the concept of Personal Contract Hire (PCH) to everybody they know. This word of mouth is having a big impact in the market-place

The move away from car ownership

The public catch on to ideas through many outlets. And one common theme rang true during the onset of the economic downturn. Selling a used car was tough. It wasn’t worth what had been budgeted for; and often significantly less than any outstanding finance left on the vehicle. A lot of individuals got hit by the market last year and are continuing to do so.

To many, leasing on a personal basis was an alien concept. The general mood has always been to ‘own’ the car. Nowadays customers are more flexible. They are open to ideas and products which may protect them in the future and offer great value for money – whether they choose to own the vehicle or not.

So are you missing out? Is it time for you to consider leasing and personal lease deals?

If so, do this: forget about interest rates, trade-ins and balloon payments. Instead, work out a monthly budget and see where that gets you. Let your business car leasing contact know what you can afford and see what you can get for your money – you might be surprised.

Further information

Anthony K Associates were established in 1995 and are franchisees of Network Vehicles (part of LeasePlan), acting as a car leasing broker for several FN 50 blue-chip funding companies to businesses and individuals throughout the UK. Click here to visit the website www.anthonyk.co.uk

For more on personal leases, read our Advice Centre article What is a personal lease?

You might also find useful our Special Report entitled Try leasing to ease your credit lines

Also read the Editor’s Blog Personal leases and your business motoring

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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