Buying a car isn’t easy; there’s always a lot to think about, from working out how to sell your current car to finding a car you like that’s within your budget. Thankfully there is an alternative to buying – leasing. Before you buy your next car check out these 5 reasons to lease a car instead.
TOP 5 REASONS TO LEASE A CAR
1. It is cheaper
Let’s start with the most obvious reason to lease a car – namely, that it’s cheaper than buying one by a long shot. Generally, your monthly lease payment is determined by taking the expected price of the vehicle at the end of the leasing period – the residual value – away from the starting value (the value of the car at the time of purchase). The remaining balance is then split across the lease period to give you monthly payments.
2. No maintenance worries
As the owner of a brand-new car, it is your responsibility to fix any technical difficulties that your car encounters. Unsurprisingly, fixing car problems can be extremely expensive and the temptation is often to leave niggling problems alone until they become major issues. The issue with this, however, is that a) the issues could become potentially dangerous and b) even more expensive.
With leasing, however, you have the option to take out a maintenance package. Standard packages typically cover all servicing, general maintenance and tyre costs for the duration of the lease agreement, but other agreements can be taken out and tailored to your needs.
3. Get a newer model whenever you want
Trying to sell your car in order to purchase a new, better model can be a painful and difficult venture. With leasing, however, you are liberty to change your vehicles whenever you like (in line with the terms of your lease agreement, obviously). Typical agreements span between 2 and 4 years, less than the average Higher Purchase agreement of 5 years. Leasing also avoids the risk of depreciation (we’ll get on to that one in a second) so you don’t have to worry about not making enough on your sale to fund your new wheels.
4. No worry of depreciation
During its time with you, your vehicle will depreciate in value; this isn’t a reflection of your ability to care for it, but a general, inescapable truth when it comes to the car market. When you buy and subsequently sell a vehicle, the depreciation loss is absorbed by you; with leasing, however, the vehicle remains the property of the leasing company, and it is the lease company’s responsibility to cover them at the end of your lease.
5. You can budget more effectively
Much like in the US Car Leasing in the UK generally involves a monthly lease fee. The fee is set at the beginning of the term and remains the same throughout the lease period. As such, you have a greater oversight of your outgoings, enabling you to manage your budget more effectively. If you take out a maintenance plan alongside your lease, you also take away any worries associated with trying to afford emergency car repairs in the event of breakdowns, accidents, or servicing issues.