You might not have considered car leasing as an option before but it’s a very popular choice. In the U.S, 25% of cars are leased. So, why are so many UK drivers still taking out expensive car loans or hire purchase to get their hands on a new motor? Mostly, it’s a lack of knowledge about the benefits of leasing so, here are some reasons why you should consider it when you need to replace your vehicle:
Get a better deal
When making an important purchase, like a house or holiday, most people invest a great deal of time and effort into researching the best deals. When it comes to cars, many of us decide on a make and model we want and neglect to research the best options properly. However, spending a little more time on choosing the right car finance can have a significant impact on the cost. The more information you have at your fingertips, the better prepared you are and the more able you are to negotiate a better deal.
If it appreciates, buy it. If it depreciates, lease it
As soon as you drive off the forecourt, your new car is depreciating. Therefore, taking out car finance, you’ll be paying a set amount for a number of years for something that is losing value. With leasing, you pay a monthly fee over a set time and then hand the vehicle back to the leasing company. Monthly repayments are often less than those with a loan and only a small deposit is normally required.
The biggest attraction of leasing for many drivers is the chance to drive a car that would otherwise be out of their price range. There are no large up-front costs, outlay or loans to sign up to for years on end.
For driving with increased peace of mind, most leased vehicles will come with a manufacturer warranty that covers the period of the lease. Maintenance issues are often covered, and road tax is included too.
What makes a good lease car?
As with any market, factors like the season, supply and demand, the car’s value and the economic environment will all affect what makes a car a good option for leasing. Leicester Car leasing companies like http://leasing.totalmotion.co.uk/ offer all the most popular makes and models.
The price of monthly leasing is calculated by looking at the difference between the purchase price and the estimated value at the end of the lease period. Mileage and condition also need to be factored in, as well as an element of profit and VAT.