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The Lookers guide to leasing

Leasing a car can offer a huge range of benefits to individuals and businesses. You can take advantage of lower costs and less maintenance fees, as well as avoiding disposal costs, and you can benefit from a new car every few years.

However it's important to understand the contract that you are entering into, and that you'll have to take other factors into account, like calculating your car's mileage.

We've listed basic details of some of the popular car leasing schemes that we offer at Lookers, to help you choose:

Personal contract hire. Choosing this scheme allows you to pay fixed monthly amounts based on the car's expected depreciation, or the difference between the purchase price and resale value at the end of the contract. Personal contract hire lets you lease a new car every few years without worrying about it losing its value. Prices are fixed, so you'll also avoid surprise payments.

Personal contract purchase. The benefit of this scheme is that you have the option of buying the car at the end of the agreement. After putting down a deposit you'll pay low monthly payments throughout the contract, and can pay a pre-agreed amount when the lease finishes to buy the car. You'll need insurance throughout the contract, and to bear in mind that exceeding mileage limits may incur extra fees.

Hire purchase. A simple scheme, with a hire purchase agreement you'll pay a deposit and then monthly payments throughout your use of the car. Once its purchase cost has been met, you'll take ownership of the vehicle. This means that you can choose a prestige model that you couldn't afford to buy outright – but it's important to compare the amount that you'll have to repay for different deals.

If you're interested in leasing a car, contact the friendly team at Lookers for more information. We'll explain all of our schemes in greater detail, and will guide you towards an option that fits your budget and driving requirements.