Can you lease for 12 months?
For many people, 2 years or even 3 years is a very long time, a lot can happen in that time. Maybe a new baby, change of job, re-location, it can all change very quickly.
So with a car lease or contract hire, as its better known in the UK, taking a 2 or 3 year contract might not be a suitable option. But did you know that you can lease a car for 12 months?
Can I get a 12 month car lease?
Yes you can, there are a number of Short Term Car Lease companies in the UK that offer 12 month car leases. Some are fixed and some offer a flexible option or Car Subscription.
Occasionally, the initial payments are lower than a 24/36 or even 48 month contract hire and sometimes they can work out more cost effective than the longer term car lease options.
Who would use a 12 month car lease?
You might think that swapping your car every 12 months is an expensive affair, this does all depend on the make and model of the car. For example something like a BMW X5 can actually work out cost effective on a 1 year car lease, but it means you get a new shiny car every 12 months.
12 month contract hires are also really handy for companies and businesses, just imaging taking a member of staff on in a 3 month probation, supplying them with a 2/3 year contract and then they leave just after the probation time. You’d be stuck with a car, to be honest the flexible car leasing options would be better in this instance but you will pay slightly more.
How much does it cost to lease a car for a year?
It depends on how you take the 12 month car lease out? At the tome of writing (29th May 2019), if you were to take a 12 month contract out on a Peugeot 3008 1.2 PureTech Allure, then you would pay £429 plus VAT per month, this particular deal has a documentation fee of £175 plus VAT so the total over 12 months is £5323 + VAT.
A flexible 12 month program on a BMW X4 is £1797.42 + VAT initial payment and then £599 plus VAT per month, giving you a total of £8388.00 + VAT, however, you can cancel this contract without any termination fee’s.
At the moment, the same BMW X4 20d M Sport on a 24 month program is £1650.00 + VAT then 23 payments of £550.00 + VAT per month, giving you a total of £14300.00 + VAT over the 2 years, with an 12 month cost of £7150.00 + VAT.
Whilst you can see the 2 year deal is cheaper, it has no flexibility at all and once you’ve entered into the 24 month contract, you’ve got to honour it.
Who offers 12 month car leases?
You’ve got a wide range of providers of short term car leases in the UK, but some of the better companies include:
Cocoon Vehicles Ltd
Short Term Car Leasing Ltd
Drover Car Subscriptions
Flexigo Cars
Flexed
Northern Vehicles
Cars on Demand
Evogo
What are your thoughts on 12 month car leasing?
Do you think that a 12 month car lease would work for you and your business? Are there any situations that a 1 year car lease would be beneficial? What do you think of having a new car every year? Drop your comments below and I’ll come back to you.