For many people the main attraction of car leasing is that you can drive a shiny new car every couple of years, and certainly, the image of car leasing is that it is a haven for car enthusiasts with a low boredom threshold. But there are a number of practical and financial benefits that add up to make car leasing increasingly popular in the UK.
In an age where we can buy and pay for pretty much anything on a month-to-month basis, car leasing is another lifestyle option that allows us to manage our spending better, so let’s take a deeper look at those benefits.
Like any aspect of the motor trade, car leasing is a competitive market, but for once, the driver can really take advantage of this. Leasing companies have to build good relationships with manufacturers and dealers in order to get the best deals, and these are passed on to you at attractive rates.
Because you are only paying for depreciation with a car leasing deal – ie. you are not paying the value of the car because you don’t own it – your monthly payments will be less through car leasing than with a standard car finance loan for ownership, so this means you can raise your ambitions a little and drive a better standard of car, maybe a Porsche Cayman GTS? Go on and treat yourself!
In a nutshell, a new car will give you less problems than an old car. Technology, manufacturing specs and fuel economy will all be better with a brand new car, so immediately there is less to go wrong and less for you to be concerned with. Most car leasing deals also include a manufacturer’s warranty.
Furthermore, as you are driving a new car and most likely only for two or three years, you are unlikely to be faced with some of the big car maintenance costs, such as timing belts or a new battery. And the biggest concern you can avoid is having to sell the car when you’ve had enough of it – with car leasing you will never be stuck with a car you can’t sell or have to take a big financial hit on.
Driving a brand new car means that you can always enjoy all the latest technology and in-car gadgets, so your driving experience is always going to be the very best available. As well as impressing your friends, this also means you can be better informed when making decisions on your next vehicle.
Essentially, through car leasing you are tying less money up and are free to spend this elsewhere in your life, or even save it. Manageable monthly payments mean you are not investing money in a depreciating asset, and certainly if you also like to change cars regularly, car leasing is a cost effective way of motoring.
With car leasing you will always know what your monthly payments are and can budget accordingly. You can even include other costs such as maintenance packages, road tax and breakdown cover in your monthly payments, so that every possibility or variable is covered in one fixed and regular cost.
Dealing with car dealerships can be a minefield in terms of working out the best finance packages and avoiding hidden costs, and essentially, a car leasing company will offer you their best price and you only have to think about just one monthly figure. Sometimes, you may not even need to pay a deposit.