Car Leasing Guide - In Brief

Second hand cars are big business, and the market for them is always full with potential customers. Luckily there are thousands of second hand cars for sale on the market all the time, so those looking to buy a good quality used vehicle will often be spoilt for choice when they are looking.

One of the reasons for their being so many good quality used cars is that people are often upgrading their vehicles in order to make sure they have the latest model. People who are less concerned with having the latest model of car can therefore be safe in the knowledge that they will be able to pick up a good quality car that might only be a couple of years old. The cars, although they are not likely to be very old, will be a great deal cheaper than new models too, so buying a car second hand is likely to be a very viable alternative to buying a new one for most people.

When buying a used car from a website such as Motors one of the most important things that customers should do is make sure that all the relevant paperwork is handed over. The paperwork will detail all the performance levels of the car, and anything that might be wrong with it –something that clearly any new owner of the car will need to know about.

Also, if the car is over three years old is will need to have an MOT in order to make it is fit to travel on the road. Cars that are newer than this will not need to have one, but before buying a used car it is very important that customers know the details of any MOT that has been carried out. If the car is fit to be driven on the road it should have an MOT certificate.

Why lease instead of buying
There are several potential advantages of leasing a car compared with buying it. These include lower cost, conserving capital, less maintenance, avoids disposal costs and problems.

Disadvantages
The main disadvantages of leasing are that you need to estimate your annual mileage, you will be required to have fully comprehensive insurance and you may need to plan your replacement vehicle in good time, as there may be some inflexibility at the end of the contract period.

Advantages
If you use Leasing Qote there are some unbelievable bargain deals when leasing a car. If you are prepared to be slightly flexible, it can cost about half as much to lease a car as to own it.

Advice For Companies
Companies, particularly VAT registered businesses should find leasing ideal. Most companies can reclaim half the VAT on their leased vehicles, and this generates an automatic advantage compared with buying, as VAT on cars is not generally reclaimable.

Leasing conserves cash flow, and is particularly helpful for younger and expanding companies. It also helps the company because the total ownership costs are easier to quantify and predict. Because leased or contract hired vehicles use off-balance-sheet financing, they help companies balance sheets to look healthier.

Advice For Individuals
Most individual will not be able to benefit from reclaiming any of the VAT chargeable on the lease, however this does not really penalise them because VAT on the vehicles themselves could not be reclaimed, leaving the individual no worse off. Some contract hire deals are available only to companies, others are open to all, subject to credit status.