Why You Should Consider Car Leasing
Car leasing has grown in popularity in recent years. Studies show that 1 in every 4 car buyers ends up choosing to lease instead of purchasing a car. There are definitely various factors that one should consider when deciding whether to buy or lease a car. The long-term and short-term financial implications of choosing either of the two options have been found to be the main factors that influence car buyers decisions. However, the final decision boils down to personal preferences and priorities.
There is more to car leasing than just the acquisition of a new car. Compared to buying a car, leasing offers you cost savings so many fronts as you’ll get to learn. If you are considering leasing a car, but aren’t sure if it’s the right option for you, read on to find out what you stand to gain when you lease a car.
Car Leasing in the UK
When buying a car, you pay for its current value. If you want to own your dream car, you need to foot its entire bill, but if your finances are limited and don’t qualify for a car loan you’ll just have to settle with what you can afford. However, when you lease, you are only paying for the depreciating value of the car. This means that the leasing company estimates the resale value of the car by the time your lease ends. The amount you pay is the difference between the initial value and the estimated resale value. This means that you can easily afford to drive away with any car in the dealership long as you can manage to pay it’s depreciating value.
Premium and luxury cars are built to last that’s why they are expensive. You’ll be surprised to find out that by going your dream car you’ll actually be doing yourself a favour. However, the insurance costs may be high for obvious reasons, it is important to check first on Select Car & Van Leasing.
Monthly Payments Are Lower
As discussed above, when leasing, you only pay for the depreciating value of the car. This payment is spread over the months of your lease period, which makes it even cheaper to afford. It is even cheaper if you go for a car with a low rate of depreciation.
Little To No Repair Costs
Most car manufacturer warranties last up to 3 years. This means that if your lease term is within this period, all your repair costs are fully covered by the manufacturer. It is therefore wise to ensure your lease is no more than 36 months so as to fully enjoy this benefit.
Drive A Reliable Car
In addition to the manufacturer’s warranty mentioned above, you need to worry less because you are less likely to run into any mechanical issues when driving a new car. Leasing allows you to regularly switch up your cars to new, modern and improved cars, which are more reliable than the previous. Buying a car commits you to the car for an extended period of time meaning that as it grows old, you’ll have to constantly need to have it serviced and repaired to avoid unexpected breakdowns.
You Don’t Have To Deal With The Hassle Of Car Resale
Once your lease expires, all you have to do is return the car and lease another one if you wish. Buying a car ties you to the car. If you want to switch, you might need to take out another loan or drain your savings. You might also sell your current car in order to add up the cash. A car is a depreciating asset, which means that a car is often sold at a loss. What’s more, the process of finding potential and willing buyers offering to pay an acceptable amount is not an easy task.
The only downside to leasing is that you don’t get to own the car, however, if you are able to overlook this limitation, you stand to enjoy numerous financial and personal benefits that buying a car doesn’t offer.