What is the best (or more popular) car to lease in 2019? Consistently (or so it has been for over 12 months) the Mercedes Benz A-Class has proved to be at the top of the agenda for most personal and business leasing customers.
Since receiving a full re-design, the A-Class has continued to be the most dominant 2019 lease deal in the UK, faltering only to the Model 3 Tesla over the last couple of months. Mercedes has managed to create a car which seems to attract both young and older drivers alike. Plus with a host of small to quick performance petrol options (including a new A45) and an array of diesels, the car can accommodate both the personal and company car markets.
That being said, there is always stiff-competition in the hatchback segment, the ever popular Audi A3, a brand-new BMW 1 Series and an upcoming VW Golf are going to push the popularity of the A-Class. Whichever option you choose, we are sure you will enjoy it!
How easy is it to organise a business lease? Would I be able to lease a vehicle if I have a foreign-based company? The growing interest in the contract hire market coupled with the dynamic growth of a global economy has presented some interesting queries for the CarLease team. In terms of contract hire, from an underwriting point, what businesses need to be aware of is that there will be some form of underwriting and due diligence before you are able to proceed with the new car lease.
The unfortunate part of a buoyant social media platform is that some companies fraudulently or dishonestly advertise “bad credit leasing” or “no credit check leasing”.
The truth is that the major finance in the UK expect you to provide details of your business (and you) which can include:
Trading and registered address;
Contract details for the company and the director;
Bank Account details (all vehicles are paid for by direct debit); and
Direct details – name, date of birth, home address and email address.
The key points to note is that we generally expect the company to be based in the UK and have at least two years’ filed accounts at Companies House. While the underwriting system and team will look at a number of factors, the fundamental aim is to show the company has been training successfully and profitably over a number years and that the directors do not have adverse or bad credit.
We are not suggesting that the company must be making millions, it is very much about showing the company is sustainable and can meet the rental payments each month.
As the liability for the car is limited to the company, the finance company needs to be confident that the rentals will be paid and the company will not default on its obligations.
Additionally, a director having bad credit can cause some concerns as the approach by the director to finance is likely to be mirrored in his or her company. Before applying for credit, make sure your accountant has filed the latest accounts with Companies House (and on time) and have a full set of audited accounts available to send to us.
Any director who has credit concerns should use Experian to check their credit position.
So what happens in the case of a European company with a UK presence – can they lease a car? In theory, this is now possible but, as per above, there needs to be an understanding that a form of checks will be undertaken first. For us to successfully organise credit for you (which we have done with companies from Spain, Portugal, Denmark, Germany and Holland) we need as much information as possible. Some companies approach this in the same way as car hire, where there is an expectation that paying for the car per month in advance together with a driving licence of the driver will suffice.
While car hire is much easier to organise (and much more flexible) this is far more expensive and is not a cost-effective solution for a company requiring a vehicle for more than 12 months.
Contract hire is a fixed contract, so is more inflexible but it will be a far more certain and consistent product.
So what information do we need from European companies? There are a number of qualification requirements for the finance providers we work with which includes:
• The address and telephone number for your registered UK office;
• Details of your UK bank account (sort code and account number);
• If applicable, any registration details with Companies House (and any filed documents);
• The email address of the signing director – many of the finance documents we send will need to be signed electronically;
• For any European company with an individual shareholder with over 25% equity (shareholding), we do need some details of the shareholder; and
• Your latest accounts translated into English.
We can also speak to the individual driver in the UK to help them through the process too. The UK has certain facets which company car drivers need to consider – tax, road risk, fleet policies and maintenance. This can sometimes be different to what happens across Europe and we want to ensure that the company puts in place a system and process that operates correctly. For more info on foreign car leasing, just get in touch with our team.
In terms of the car shown here, the Mercedes-Benz A CLASS HATCHBACK A180 AMG Line Executive 5door Auto (Petrol), this is based on the following configuration:
· Polar White Solid Paint
· Artico man-made leather/Microfibre Dinamica – Black with red stitching
· Dinamica microfibre trim in black
· 18″ AMG 5 twin spoke light alloy wheels in titanium grey with highsheen finish
As standard the car includes blue tinted glass, privacy glass, rain sensing wipers, adaptive bake assist with hold function and hill start assist, ESP, AMG floor mats, hard-disk navigation, active brake assist, 180 degree rear view camera with parking guidance, active lane keep assist, active park assist with front/rear parking sensors, start/stop button, 7” colour screen, body coloured externals, electrically adjustable heated doors mirrors with LEDs, DAB radio, active aerodynamics, diamond radiator grille with chrome pins, adaptive brake lights, LED high performance headlamps/tail lamps/third brake light, climate control, 3 spoke flat bottom leather multi-function steering wheel with perforated leather, 10.25” media display, artico man-made leather with microfibre upholstery, stainless steel pedals, gearshift paddles on steering wheel, light and sight pack, mirror pack, seat comfort pack, 40/20/40 split folding seats, heated front seats, sports seats, keyless go, immobiliser, central locking and alarm system.
In terms of additional specification consider adding – light aluminium trim, advanced navigation or the driving assistance pack.
In terms of the technical-side company car and business users can note the P11d at £29,520.00 and CO2 at 125g/km. The 1332CC 7 speed auto petrol engine delivers 53.3 combined MPG (EC), 42.2 (WLTP), 136ps and 0-62 times of 8.8 seconds. The service intervals on an A-Class are every 12 month or 15,500 miles, whichever lands sooner.
So would you select the A-Class as your next car leasing option?