6-12 month car leases vs long-term leases
Hi my name is Jake and I am a Director at Just Vehicle Solutions, in this blog I am going to be comparing some of our current 6-12 month car leases offers to the same vehicles on a longer term leases.
6-12 Month Car Lease Pro’s
- Get to change vehicles more regularly, keeping up to date with newest models
- Can change size of vehicle as your needs change, need an SUV over summer to head to Spain (In non covid times of course) no problem.
- Faster delivery, majority of our vehicles are deliverable within 2 weeks, often longer-term leases are 14-16 week factory lead times.
- Easier credit acceptances, vehicle dealers often require 2-3 years company accounts which can present problems for newer businesses and start-ups, with our credit checks being done in house there is more flexibility.
- Lesser deposits, possible to pay for the first month in advance, where many long-term leases require 3,6 or 9 month deposits.
- Rental agreement does not constitute a financial agreement / commitment in the same way that a longer-term lease, which could be a benefit if applying for a mortgage soon.
- More flexibility if you need to change during the course of the contract.
24 Month plus Lease pro’s
- Usually cheaper, as we will compare later on in this blog.
- More options on spec, with our short-term car leases it is not possible to decide which colour your leather seats are for instance, it is possible often on a longer-term lease.
Example’s in action as of today – 15.03.2020
VW Polo Match 1.0 5dr Manual available for March delivery on a 6 month deal by JVS
£276 plus VAT / 2+6 Profile / 12,000 Miles
So a bit of maths, 2 months down followed by 6, total cost over the 6 months £2208 plus VAT. Giving us a true monthly cost of £368 per month plus VAT.
And now the same vehicle on a long-term 24 month contract via Select Car Leasing.
VW Polo 1.0TSI 95 Match 5dr
24 Months / 25k Miles / 3+23 payment profile at £367.23 plus VAT
2nd Maths lesson, 3+23 payments of £306.02 plus VAT equalling a true monthly figure of £397.83 plus VAT.
So in this example as of 10th March 2021 the time of writing our Polo is £29 per month cheaper than the long-term example.
Now it is worth noting in the example above the Select Car Leasing example has 1,000 more miles over the year, this is because the mileage brackets they offer are 20,000 and 25,000 and our 6 month deal would work out as 24,000.
From a small-ish but quality Polo all the way upto a Jaguar F Pace
Jaguar F Pace D200 HSE 5dr Auto AWD
2+6 Profile – 6 Months / 12,000 Miles
True monthly price – £918.66 plus VAT
Jaguar F Pace D200 HSE 5dr Auto AWD
A 3+23 payment profile at £735.85 plus vat
True monthly rate of 797.17 plus VAT
JVS are £121.49 per month more expensive.
Fiat 500 1.2 Dualogic
JVS £199 2+6 profile / 12,000 miles
True Rate – £265.33
3+23 profile / 25,000 Pa / £285.14 plus VAT
True rate – True rate £308.90 plus VAT
Making JVS in this instance £43 per month cheaper.
BMW 1 Series 118i M Sport
£376.95 plus VAT
2+6 / True rate – £502.60 plus VAT
£455.21 plus VAT
True rate – £493.14 plus VAT
Making JVS £9 per month more.
So 4 worked examples, two in which 6-12 month car leases were cheaper, and 2 in which they were more expensive, in order of fairness the vehicles were picked at random and we had anticipated being a little more expensive on the majority of the deals, as car depreciate most heavily in the first 6 months and you would expect the longer you had a vehicle for the cheaper it to be traditionally and typically.
Looking for a lease car in 2021?