The UK’s best-selling car year after year
Say hello to the Ford Fiesta! What makes the Fiesta so special and popular? Why does it continue to be such a hit in the UK automotive market? The “small car” segment was often seen a compromise car; a run-around as such. Fast forward to 2019 and you can obviously see that the quality of these cars has improved dramatically and they are no longer a budget mode of transport.
Add to that the increasing room in the vehicles, in that you could fit a family in the vehicle and the specification does not leave you thinking you have been mis-sold your car. As we have seen tougher economic conditions, this type of vehicle has become more popular as families can no longer afford to have multiples of large or sport cars. Insurance, fuel, servicing and maintenance are not cheap!
You also have to consider the fact that many houses have insufficient parking spaces or driveways, meaning that bigger cars will not be suitable. The result of this is that the small car is such a popular vehicle to have within your personal fleet and, it seems, that Ford are winning the race to the top.
I like leasing a car as it means I don’t have to pay a deposit doesn’t it?! A common question, or assumption, particularly when it comes to our “cheap leasing deals”. The market for cars around £150 per month is incredibly popular as this meets the requirements of many personal, and business, customers. The growth of contract hire (leasing) has definitely pushed away some of the traditional methods of car procurement for a new car i.e. hire purchase and personal contact purchase.
Traditionally, cars were advertised with big deposits, meaning customers would pay large sums upfront in order to achieve cheaper monthly payments. Then, at the end of the finance agreement, some customers were dismayed by the lack of equity or value in the car. Fundamentally a car is depreciating asset and what customers need to be aware of is that it is not an investment!
Just because you paid a large deposit does not mean this will be returned to you at the end of the contract – depending on market forces, the condition of the vehicle and the demand for the car, you could either have a valuable vehicle or one which unfortunately has little value.
We are not saying that contact hire is a solution to all of this; like any finance agreement there are clear advantages and disadvantages. To clarify, one of the perceived advantages is that you don’t need to pay a deposit with leasing. The first correction is that we say initial rental and not deposit – plus we also say monthly rentals and not monthly payments.
The main reason for this is that leasing is a usership based contract and you will never own the vehicle, so it is important the lexicon is consistent throughout. The second correction is that leasing is not always a “zero deposit” situation, Like any finance agreement you have the ability to pay as much or as little in the first instance i.e. the initial rental. The prices advertised on our website are all based on contract hire arrangements and will all be based on an Initial Rental equivalent to six rentals on a spread basis (this is sometimes referred to as “6 Spread” Initial Rental).
By way of example, if a price is advertised at £300 per month on a 24 month contract the Initial Rental would be £1800. On this basis, the customer would pay £1800 in month 1 (usually 7-10 days AFTER delivery) and £300 in months 2 – 24.However (subject always to credit) CarLease UK can facilitate other Initial Rental and Payment requests which may better suit the customer’s needs.
In some instances, we are asked about a zero deposit arrangement or, as we say, a No Initial Rental/Single Initial Rental contract. For customers with strong credit, this is an opportunity to take a vehicle without any enhanced initial rentals or payments. Taking the example, above if a car was advertised at £300 per month on a no Initial Rental basis, you would simply pay £300 in months 1 – 24.
This is a great solution for a company car driver receiving a monthly car allowance
If you elect to take cash, rather than a company car, you pay a fixed amount per month for the vehicle, service/maintenance and the insurance etc So that you are not out of pocket, you would ensure that the net monthly figure you receive matches your monthly obligations.
If you are more financially prudent, you couldn’t pay an enhanced initial rental which your employer will not assist you with. You also have to remember that if you are taking 2/3 year contracts, each time you take a new car you have to pay £1,000-4,000 at the outset. For come customer this isn’t affordable and therefore they will utilise the zero deposit/initial rental solution.
In terms of the car shown, the Ford Fiesta Hatchback 1.0 EcoBoost 125 ST-Line Navigation 5dr (Petrol Manual), this is based on the following configuration:
- Agate Black Metallic Paint
- Cloth – Ebony
- 17″ 5 spoke alloy wheels with rock metallic finish
As standard the car includes 17” alloys, halogen headlamps, body coloured externals, electrically adjustable and heated door mirrors, SYNV 3 navigation, 8” touchscreen, Apple carplay/android auto, tinted glass, quickclear heated windscreen, ESC and hill start assist, front and rear floor mats, Bluetooth, DAB radio, ST grille and bodystyling kit, automatic headlights, air conditioning, 3 spoke flat bottomed steering wheel, NCAP pack, leather gear knob, MyKey system, 60/40 split folding seats, sports seats, keyless start with push button start, ambient lighting and Thatcham cat 1 alarm. In terms of additional options consider adding – privacy glass, city pack and 18” alloys.
Ford Fiesta Deals – https://www.carlease.uk.com/deals/ford/fiesta
On the technical-side company car and business users can note the P11d at £19,390 and CO2 at 111g/km. The 998CC 6 speed manual petrol engine delivers 57.7 combined MPG (EC), 47.9 (WLTP), 125ps and 0-62 times of 10 seconds. Service intervals are every 24 months or 18,000 miles on the petrol Fiesta.