First4Leasing.com

People typically don’t have an understanding of leases. So they don’t ask. You’ll only get the answer they want you want to hear. Read the contract form for yourself.

Closed-end leases
Closed-end leases, sometimes called “walk-away” leases, are most common for consumer leases today. This type of lease allows you to simply return your vehicle at the end of the lease and have no other responsibilities other than possible payment of excessive damage or mileage charges.
Closed-end leases are based on the concept that the number of miles you drive annually is fairly predictable (10,000 miles per year is typical), that the vehicle will not be driven in rough or abusive conditions, and that its value at the end of the lease (the residual) is therefore somewhat predictable.

At the time you lease, the leasing company estimates the vehicle’s lease-end residual value based on the expected number of driven miles. If the vehicle is actually worth less than the residual when you turn it in, the leasing company takes the financial hit, not you.

On the other hand, if the vehicle is worth more than the residual, and you have the option to purchase, you may want to buy the vehicle, then keep driving it or sell it and make a profit. This happens frequently.

Open-end leases
Open-end leases are used primarily for commercial business leasing. In this case the lessee, not the leasing company, takes all the financial risks, which is not so much a problem for a business, since the cost can be expensed. Annual mileage on a business lease is usually much greater and less predictable than the average 10,000 miles-per-year of a non-business lease.

In open-end leases, you are responsible for paying any difference between the estimated lease-end value (the residual) and the actual market value at the end of the lease. This could amount to a significant sum of money if the market value of your vehicle has dropped or you drive many more miles than expected. Often, the residual for an open-end lease is set much lower than for a non-business closed-end lease, which reduces the lease-end risk, but can significantly increase the monthly payment amount.

Business Leasing
Evaluation of a business lease is best handled by a tax accountant or business finance advisor who is familiar with details of the business and its financial objectives.

If you are interested in a business lease, make arrangements and to determine which type of lease will be best for your business - after consulting with your tax advisor.

Personal Leasing
As a Personal consumer, make sure you only agree to a closed-end consumer lease. Even though most non-business leases you’ll encounter will be of this type, read your contract closely just to be certain. Most consumer lease contract forms will clearly state, at the top of the form, that it is for a closed-end lease.

Leasing is basically a method of paying for a use of a vehicle over a specified period of time. Don’t get hiring confused with leasing as they are very different. While it is possible to hire a car for as little as X amount a day or for a few hours, leasing is typically for 24 months. Majority of contract are based on 3 X 23 meaning 3 payments deposit followed by 23 payments monthly (2 years) other contracts are available to suit your needs the longer you lease contract the cheaper the monthly payments.

Leasing companies have access to exclusive vehicle discounts due to buying bulk vehicles from a range of suppliers offering various prices for vehicles. The leasing company then sources the cheapest supplier for the vehicle, some companies aim to make large profit margins where as some go for volume by offer savings to their customers.

If an ordinary customer walked into a showroom and purchased a vehicle for £20,000 then the leasing company has access to purchase that vehicle cheaper then the ordinary customer. Once the cheapest supplier has been sourced for a vehicle then the monthly price would be calculated cover the depreciation over the term. At times manufacturers strike a deal with leasing companies to purchase X number of cars at exclusive bulk prices, this then means the leasing companies has to sell their X number of cars ASAP and therefore offer discounted rates.

So the ordinary customer is out of pocket by £20,000 and is stuck with the vehicle and if they would have leased the vehicle they would only be paying the depreciation monthly and hand the vehicle back after the contract has ended, not having to worry about reselling the vehicle.
It should now be clear to see now if you have you business head on that why should I have £1,000’s tied up in a vehicle when you can keep you cash flow healthy and pay the minimal depreciation on a vehicle. So with that £20,000 not tied up in a vehicle you can invest that money elsewhere. All lease vehicles from our selves also come with manufacturer’s warranty, so there’s peace of mind.

For a VAT registered business leasing a vehicle is ideal, due to a number of reasons. When a vehicle is leased on a business it is seen as an expense, this means that instead of paying the tax man the good round sum you can lease a vehicle out of it, also VAT can be claimed back 100% on a commercial vehicle or 50% on a car.

It seems the Diesel haters have banished of the earth after they heard of a Diesel Super Car landing on earth.

Audi have been investing in racing diesels at Le Mans and now you have the result, the dangerous Audi R8 V12 TDI. This R8 TDI has made diesel history with its 6.0-litre V12 TDI engine developing nearly 500bhp;  compare this to the neighbours 180 BHP Audi A4 and I’m sure you will agree this is a remarkable achievement for a Diesel. The R8 TDI produces 737lb.ft of torque making the R8 V12 TDI jump from 0-62mph in just 4.2 seconds and exceeds 186mph.

After all this, the Audi R8 TDI has achieved 24 mpg in testing. You may also find this engine sitting discreetly in a Q7 model soon.

The Audi R8 at present is still a concept; keep your eyes peeled as this beast is expected in 2009.

Leases and purchase loans are simply two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.

When making a ‘lease or buy’ decision you must look not only at financial comparisons but also at your own personal priorities - what’s important to you.
Is having a new vehicle every two or three years with no major repair risks more important than long-term cost? Or are long term cost savings more important than lower monthly payments? Is having some ownership in your vehicle more important than low up-front costs and no down payment? Is it important to you to pay off your vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years?

So we find out that making a lease-or-buy decision is not quite cut and dry. There are some things you need to consider. Let’s take a look at some of these things.

First, it’s important to understand that buying and leasing are fundamentally different, not just two versions of the same thing.

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company, based on your credit history. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale value.

When you lease, you pay for only a portion of a vehicle’s cost, which is the part that you “use up” during the time you’re driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments. You may also be required to pay fees and possibly a security deposit that you don’t pay when you buy. You make your first payment at the time you sign your contract - for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value.

As an example, if you lease a £20,000 car that will have, say, an estimated resale value of £13,000 after 24 months, you pay for the £7000 difference (this is called depreciation), plus finance charges, plus possible fees.
When you buy, you pay the entire £20,000, plus finance charges, plus possible fees.
This is fundamentally why leasing offers significantly lower monthly payments than buying.

The 5 Door Volkswagen Golf 1.9 TDI S is now available for £199 per month from Breeze-Volkswagen.

This tasty £199 price gets even better as the deal is based on a short 1 Year deal so you don’t have to commit to a lease for a long period of time, and lets face it who wouldn’t like a new every year.

As Standard the Volkswagen Golf with its 1.9 TDI S features:

• Air Conditioning - Climatic
• Isofix child seat preparation
• Split folding rear seats
• Driver’s and front passenger’s airbags
• Electric windows, front
• Halogen clear headlights
• Height and reach adjustable steering wheel
• Driver’s seat height adjustment
• Easy entry sliding seats
• Instrument lighting, blue
• Cup holders

If you’re thinking of driving to the showroom to buy a new Volkswagen Golf 1.9 TDI S then you would be expected to pay to the anything between £15,555 to £12,791.

Lease Details:
Contract Hire (24 Months)
Initial Payment of £597
Document Fee Nil
Followed by 23 monthly payments of £199

Non-Maintained Contract
10000 miles per annum
Excess Mileage: £0.06