Think You Need a PCP to Get Into A ’15 Plate Car? Short Term Leasing Might Change Your Mind

The 1st March saw the release of the new ‘15 plate on vehicles across the UK (yes, it really is 15 years since the new format registration marks were released!). Figures from the Society of Motor Manufacturers and Traders (SMMT) show that the new car market has grown by 12.0% in February, with 76,958 new registration marks registered and fleet buyer registrations up nearly 20%.

But instead of parting with your hard earned-cash (or, in many cases entering a lengthy PCP agreement) to get your hands on the still-shiny tyres of a brand new model, have you ever considered leasing a vehicle instead?

Let’s take a look at the pros and cons of leasing a ’15 plate vehicle from a specialist company versus buying one.

Consider short term leasing

So, is there a way to get behind the wheel of a 15 plate vehicle of your choice that you actually want to drive and without needing to worry about being tied in to a lengthy contract?

The answer is yes – and it comes in the form of the increasingly popular short term vehicle lease.

Short term car leasing plugs the gap between daily car rental and what we’d call traditional car leasing (think PCPs and Hire Purchase agreements).  The typical length of a lease agreement in the UK is around  36 months  – but short term leasing with Cars on Demand starts from just 28 days.

There are various reasons behind why short term leasing is becoming more common, not least of which is the flexibility that this ‘no commitment’ solution offers to motorists.

And a similar flexibility applies when it comes to short term vehicle leasing for personal use. For example, a 28 day leasing contract – where the car is simply handed back at the end with no cost – is perfect for your city dwelling family who need access to a People Carrier to see them, the kids and the dog through the summer holidays and a few road trips to South Wales. As their lifestyle changes from season to season, they can quickly and cost-effectively change their car with it.

There are host of other benefits that come with short term leasing, some of which include:

• Regularly updated vehicles – with a short-term car leasing deal you can update the vehicle you drive much more often. With Cars on Demand this can be as regularly as every 28 days to 12 months, depending on when each leasing period expires.
• Better vehicles –you could find that previously unaffordable vehicles become available to you with short-term car leasing.
• Fixed cost motoring – short-term leasing means you can budget for the period of each lease knowing exactly what your monthly outgoings will be and how much you’ll spend on your car.
• Road Tax – will also be incorporated into the agreement.

Why buy 15?

As well as the gorgeous and unmistakable smell of your new leather/alcantara trim (you’ve specced it, right?) and untouched alloys, there are many benefits that come with purchasing a brand new vehicle. One of the main purchasing decisions is the fact that you can specify exactly what interior and optional extras that you want – or need - to suit your lifestyle. Bonnet stripes, refrigerators, parking sensors; you name it and most ‘15 plate vehicles will have it listed under ‘optional extras’.

Then there’s the manufacturer’s warranty that usually covers the cost of any repairs should your new car break down, or generally give you any hassle during the first few years of its life. This can be particularly useful if you drive a lot of business mileage or are always up and down the UK’s motorways visiting family and friends.

With many new vehicles having increasingly ‘eco-friendly’ engines, the annual ‘pocket-stinger’ that is road tax is being more frequently evaded – as manufacturers produce models that qualify to pay zero road tax or fall under the lowest paid for band – Band B which is £20 per year.

However, then comes the issue of actually financing the car.

Due to the fact that the majority of new cars massively decrease in value as soon as they leave the perfectly lit collection room (why do they never seem to look as good again?), and the hefty deposits that are often needed, an increasing amount of people are opting to ‘buy’ their new vehicle on finance. In most cases, you keep the vehicle for three years and then either hand it back or swap it for another model from the same brand when your contract is up. Alternatively, you can walk away – but you’ll likely have lost money and won’t have anything (or any vehicle) to show for your 36 monthly repayments.

So when you next see a sparkling 15 plate, just think – with short term leasing there’s the potential to have a new vehicle every 28 days, not just a new number plate!