Green Car Leasing
Leasing can be a great way to drive the latest green and fuel-efficient vehicles available today – low running costs, reduced up-front costs, stable payments and peace of mind.
Next Green Car have partnered with GKL Leasing to bring you some great deals for the best green cars from the NGC Approved list. GKL Leasing provide a specialist approach to business car leasing and personal contract hire. They are available on the end of a phone or email to talk through your options and identify the best green car leasing deal for you or your business .
Deals quoted are based on 10,000 miles per year and a 3 year contract term. Get a quote to change the model, annual mileage, contract term or add vehicle options. Personal Lease rates are quoted inclusive of VAT. Business Lease rates are quoted exclusive of VAT.
Car you are interested in not here? Search the Next Green Car database for the model you are interested in leasing and complete the no obligation quote form.
The process of car leasing is straightforward enough – you pay a monthly sum to drive a car around, usually over a two-five year period, but the car is never actually yours to own. At the end of the term you simply give the car back to the dealer, take out a new lease, or, in some cases, you might be given the option to buy.
Car leasing addresses arguably the biggest problem associated with buying a new car – the fact that the car immediately loses a large portion of its value as soon as you drive it away from the garage. Of course, the more you drive your vehicle the less it is worth but different makes and models have different depreciation rates.
Consequently, when you take out a car lease, a sum is worked out known as the ‘residual value’ – this is an estimate of what the car will be worth at the end of your lease period. Your monthly payments are then based on the manufacturer’s suggested retail price (or the price you negotiate with the dealer) minus the residual value. In other words, you pay the difference between what the car is worth when you take out the lease and what it is estimated to be worth at the end of this period.
This means that the higher the residual value of the car, the less you will pay on your car leasing deal.
This all depends on your preference. If you want to own the vehicle, think your lifestyle may change in the near future, drive a lot of miles and don’t mind higher monthly payments then you should buy or contract purchase with an option to buy.
Alternatively, if you like to drive a new car every 3 years, want lower monthly payments, have a stable lifestyle and like having a car that is always under warranty then you should contract hire or lease a car.
Leasing vs. Buying: Example Comparison
Leasing can save you a good deal of money, as this example for the new Volkswagen Golf 5dr Hatchback 1.6TDi 105ps Bluemotion Tech Match Manual demonstrates:
|Typical dealer discount||£1,000|
|Discounted dealer price||£19,570|
|Road tax £20 pa (year 2&3)||£40|
|Typical 3-year repayment *||£12,992|
|Final balloon payment||£9,425|
|Sale proceeds **||£8,559|
|Total cost of motoring||£15,855|
|35 subsequent rentals||£247|
|Total VAT payable (@ 20%)||£1,879|
|Total cost of motoring||£11,273|
*“Typical 3-year repayment” rate includes acceptance fee and option to purchase fee: supplied by VW Financial Services
** “Sale proceeds” based on “expected” used trade in value (+or- 3% subject to physical condition at point of trade in) at 36 months old with 30,000 miles on the clock: supplied by VW.
In this case, would save you around £4,600 over a 3 year period – certainly worth looking at if you like driving new cars and want to change your vehicle every 2-3 years.
Hybrid and electric cars are excellent candidates for leasing as they typically have a relatively high purchase cost yet low running costs.
Many hybrid cars such as the Toyota Prius or the Honda Civic, have been available for several years and they have an established residual value - thus there is no issue in leasing these vehicles. Identify available hybrid cars through the search tool.
The new electric cars which have come onto the market in the past 6 months, such as the Mitsubishi iMiev, Peugeot iOn, Citroen C-Zero and Nissan LEAF , incorporate new technologies, particularly the battery and the residual values are not yet established.
As of April 2011, leasing deals are available on the Mitsubishi iMiEV and the Nissan LEAF; there still remains an issue of availability as there is significant demand but limited supply. For more on what electric cars are currently available and what electric cars are coming soon, visit our dedicated electric cars area.
- What are the difference finance options available?
- When is the best time to lease a green car?
- Who services the car?
- Who pays the road tax?
- What happens if I miss a payment?
- What happens if I exceed the mileage limit or have excessive wear and tear?
- Can I change my mileage agreement during the term, for example, if I get a new job and have to travel further?
- If I have a personal contract purchase agreement and my car is written-off, will I be liable for the shortfall?
- Who arranges car insurance on the leased vehicle?
- What happens if I die during the term of the agreement?
- How will my payments be collected?
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This depends on the availability of promotional offers, which can crop up throughout the year if the leasing company is overstocked or has a special deal with a manufacturer. However, typically the best times to look for good leasing deals are towards the end of each quarter, at the end of the year and especially the month immediately prior to the introduction of new car registrations when a distributor/dealer is likely to want to move a lot of stock on to bring in the new models.
This depends on your agreement with the supplier. Some will offer maintenance agreements, while others will not. Check the terms of your contract and ask before you order the car on a contract hire/purchase.
Again, this is dependent on the individual supplier and contract type. However, most contract hire/purchase/lease deals include the first year’s road tax as part of the agreement. Contract Hire and contract purchase often cover you for the entire term of the lease, but please do check.
Always inform the finance company before you miss a payment – they may be willing to give you a temporary reprieve if you let them know in advance. However, there are no guarantees and missing payments can lead to the car being repossessed.
You are likely to be charged if you do not meet the leasing company’s guidelines.
Can I change my mileage agreement during the term, for example, if I get a new job and have to travel further?
Most leasing companies will happily negotiate a new deal – but of course this will lead to higher payments as the residual value of the car will be reduced.
If I have a personal contract purchase agreement and my car is written-off, will I be liable for the shortfall?
That depends on the negotiations between your insurance company and your finance company. It is a good idea to take out gap insurance as this will cover you in case the worst happens during the term of your agreement.
You must arrange your own car insurance and you must take out a comprehensive policy as you are effectively driving someone else’s vehicle.
The car will be returned to the leasing company.
Direct debits are the most popular form of payment with leasing companies.
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