Car Leasing: What Do You Need to Know

Leasing is one of the most popular ways to pay for a new car, with thousands of people each year choosing this option when looking to get behind the wheel of a new vehicle. It’s a service that we offer here at Eden, too, so if you’d like to find out more, then get in touch or check out our dedicated website.

But what is leasing, how does it work, and is it the right option for you? In this article, we’re going to be looking at everything you need to know about this form of car payment.

What is car leasing?

Leasing - sometimes referred to as Personal Contract Hire or PCH - is a popular way of getting behind the wheel of a new car. It’s an alternative to options such as personal contract purchase (PCP) or Hire Purchase, offering the chance of lower monthly payments, which makes driving a new car more affordable.

How do I pay?

You pay for leasing via monthly instalments. Firstly, though, you’ll pay a small deposit - sometimes referred to as an initial rental or upfront payment - which is usually a multiple of the amount that you’re paying each month. As a result, you may see the leasing agreement require a three-, six-, or 12-month equivalent deposit, which isn’t refundable.

A larger deposit will lower your monthly instalments, so it’s worth thinking about what you’d be happy paying and adjusting it where possible.

What cars are available through leasing?

There are loads of cars that are available through leasing here at Eden coming from key manufacturers such as Hyundai, Mazda, MG and Peugeot. We’ve got the brand new Peugeot 5008 available to lease today, as well as Vauxhall’s sharp new Grandland Electric. Both are great choices for families, too, with their spacious interiors and large boots. We also offer vans on leasing, check out our best van leasing deals.

The benefit of leasing is the flexibility that it gives you between models. If you’d like more information on the kind of cars that we offer here at Eden, then check out our dedicated leasing page.

Do I keep the car at the end?

No. With leasing, you don’t own the vehicle outright at any point during the agreement, and there’s no option to purchase it at the end, either. Once you reach the end of your leasing agreement, you simply return the car to us, and you’re free to either walk away or search for a new vehicle and start a fresh agreement. It’s great for drivers who like to be behind the wheel of a new car every few years.

Can I add maintenance?

Having a maintenance package can add some peace of mind to a leasing agreement. While new cars will be covered by a manufacturer's warranty, this covers mechanical issues rather than regular maintenance and servicing.

At Eden, there’s the option to add a maintenance package to any finance agreement. With it, you’ll have all routine maintenance covered, as well as tyres, exhaust and batteries. Roadside cover is usually included as part of this package, too. Get in touch today if you’d like to find out more.

Leasing is one of the most popular forms of car payment, and it’s easy to see why. With monthly instalments, you can spread the cost of driving a new car, and you also get the freedom to swap between new cars on a routine basis. To find out more, head to our leasing page today or get in touch with a member of the team today if you’ve got any further questions.