and how does the ‘payment structure’ work?
Leasing a car rather than purchasing outright is becoming an increasingly popular option in the UK amongst motorists – you can drive a brand new car of your choice, within your budget range, for a period of time that suits you without having to pay for the car in one lump sum, plus you don’t have the worry of selling it when the time comes for a change.
But what are the requirements for leasing a car and how does the ‘payment structure’ actually work? These are just a couple of questions that motorists considering leasing a car need answering before they go ahead and take out a lease agreement.
Firstly, in order to be able to lease a car and take out a contract, you need to be over 18 years of age, hold a full UK driving licence, have 3 years of employment history behind you and an acceptable credit rating – you must pass these four profile requirements in order to be eligible for a lease contract.
When it comes to the ‘payment structure’ involved in leasing a car, a lot of people are left feeling a little confused as to how it all works, so we’ve provided the following example to help you understand more about how leasing a car works and how your payments will be calculated.
If for example you take out a car lease contract for 3 years:
3 year contract = 3 + 35. This means that your 3 year contract will be made up of 36 individual monthly payments. The first payment is always a higher figure and is generally 3 or 6 times the standard monthly fixed payment.
So using the example above, the standard monthly payment of your contract is £135.99, this means the first payment would be £407.97 (3 x £135.99), followed by 35 fixed monthly payments of £135.99 – it’s that easy!
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