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LEASING VS BUYING

HOW LEASING WORKS

Which is right for you - leasing or buying?
The answer will largely depend on your personal circumstances and specific needs.
Here, we’ll outline the features, pros and cons for both options to help you make up your mind.

 

Benefits Leasing Buying
No need to haggle over prices check_noround ics
Lower upfront cost check_noround ics
Maintenance costs and replacement tyres included (if you opt for the Maintenance Package) check_noround ics
Car tax arranged and paid for you check_noround ics
Insured leased vehicle, ready to drive (if you opt for Arval Total Care) check_noround ics
You own the car ics check_noround

Avoid the hassle of selling the car when you want a new one

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You can modify the car

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PROS/CONS OF LEASING A CAR

 

PROS CONS

BRAND-NEW CARS

Choose from a wide range of the latest models featuring state-of-the-art safety features and tech.

MILEAGE RESTRICTIONS

Before we set up your lease, you choose the mileage allowance. This means there are charges to pay if you go over it.

FIXED COSTS

Manage your budgets and control costs more easily with fixed monthly payments. All our contracts include road tax as standard.

YOU DON'T OWN THE CAR

If you're leasing, you can't modify the car. And you obviously won't be able to sell or trade it in to finance your next vehicle.

YOU'RE IN CONTROL

Choose a contract length, initial payment and mileage to suit your needs. You can even include extras like an insured leased vehicle and breakdown cover.

MAINTENANCE COMMITMENT

You're responsible for keeping the car in a good condition throughout the lease, and any damage beyond 'Fair Wear and Tear' will result in a charge.

NO RESELLING HASSLE

No exposure to the unpredictable used-vehicle market - simply return the car to us at the end of the lease.

CREDIT REQUIREMENTS

You need to pass a credit check to lease a car, in much the same way as if you were securing finance to buy one. This is to make sure you'll be able to manage the monthly payments.

LOWER PRICES

Leasing payments tend to be lower per month than if you were to purchase the vehicle using finance.

FIXED CONTRACT

If you change your mind and return the vehicle before the end of the agreement, there's usually an early termination fee.

 

 

 

 

PROS/CONS OF BUYING A CAR

 

PROS CONS

YOU OWN THE CAR

Fancy a respray? Or racing stripes? You're free to make improvements and modifications without incurring penalties (just make sure you inform the DVLA and your insurer).

BUDGETING CHALLENGE

Controlling costs associated with car ownership can be a challenge - road tax, fluctuating insurance, MOT, breakdown cover, unexpected repairs.

NO MILEAGE RESTRICTIONS

If you suddenly get the urge to drive from Land's End to John O'Groats, you can. There's no mileage cap on your own vehicle.

HIGHER PAYMENTS

If you need to borrow, you're likely to be paying interest on a loan. And monthly instalments on a car loan are typically higher than leasing payments.

TOTAL FREEDOM

You choose where, when and how you drive, and you're not restricted by 'Fair Wear and Tear' policies.

DEPRECIATION

Cars quickly lose value and become more expensive to run and repair the longer you have them. If you own it, you bear this cost.

YOU'RE IN CONTROL

As you own the car, you can sell it at any point. Run it into the ground, part-exchange it for another car, or give it away - it's up to you.

SPEC AND TECH

The longer you own a car, the more dated the technology and safety features become. Newer engines also tend to be more efficient.

LOWER COST OVERALL

If you've saved up for the purchase and don't need finance, then buying a car will be cheaper in the long run. And no need for an initial payment.

RESALE HASSLE

When you own a car, there's likely to be a point when you need to sell it. This takes time and effort, and can be risky and stressful.

 

 

WHY LEASE WITH ARVAL?

 

1

Dedicated account teams

Support from our expert account teams and a dedicated account manager

2

Benefit from our buying power

We're able to negotiate discounts with manufacturers that we pass on to you

3

Manage your budgets easily

Control your costs with fixed monthly payments

4

Avoid depreciation costs

Reduce exposure to the unpredictable used-car market and hassle of selling

5

Avoid tying up your money

A smaller initial outlay than buying a car, freeing up more cash

6

Enjoy brand-new vehicles, fit for purpose

Enhance your driver experience with the latest tech and safety features

7

Worry-free maintenance

Add our Maintenance Package at the beginning of the contract to ensure servicing and repairs are taken care of.

 

FREQUENTLY ASKED QUESTIONS

 

When do I stop paying for a vehicle which is at the end of contract?

You are responsible for making rental payments from the point the vehicle is delivered until it is returned.
If the final payment invoice has been issued, the vehicle can be collected and this will be treated as a normal termination. No rentals will be credited.
If the vehicle is returned after the contract end date, the rental invoices will revert to billing in arrears at the end of the contract, and continue until the vehicle is collected by our authorised supplier. Pro-rata billing will apply for the final month.
We don't automatically collect the vehicle on the last day of its contract. We will organise the vehicle collection for 3 working days after you tell us you no longer need it.


Why is VAT not included in a fair wear and tear invoice?

The charge is treated as compensation because we do not undertake the repair and therefore the charges are exempt from VAT.
This charge is to compensate us for the damage caused to our vehicle and the impact of this on its value. This is standard industry practice.
To avoid these costs at the end of the lease, you can have the damage repaired before the vehicle is returned to us.

More information can be found here:
Guide to returning your vehicle
British Vehicle Rental and Leasing Associations (BVRLA) 'Guide to Fair Wear and Tear' independent guidelines for cars
British Vehicle Rental and Leasing Associations (BVRLA) 'Guide to Fair Wear and Tear' independent guidelines for vans


If my car is damaged, do I have to repair it before it is collected?

If the car is returned and the damage has not been repaired, Fair Wear & Tear charges will apply.

More information: Fair Wear & Tear Guidelines.

 

More FAQs

 

 

GREAT OFFERS

Whether you need a reliable car for the school run, luggage space for weekend road trips, high spec with lots of tech, or a spacious van for work, we've got a vehicle to meet your needs. With access to a vast range of makes and models, you'll easily find a vehicle that works for you and your budget.

 

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CONTRACT HIRE EXPLAINED

If you love that new-car feeling but lack cash, this is the option for you. Contract hire gives you access to a range of brand-new cars and vans, without the costly initial outlay you'd need if you were buying outright. What's more, fixed, transparent monthly costs make your budget easier to manage.

 

Find out more