There’s nothing compared to being behind the wheel of a new car, but if the total cost of a new car is too prohibitive for you, you may very well benefit from car leasing. Granted, you will never own the vehicle and will only get to drive it for a few years, but what’s not to like? You don’t have to pay too hefty a deposit, and you can also do away with the issue of depreciation. You don’t even have to think about it at all because the car is not yours, to begin with, and you can give it back to the lease provider once your agreement ends. You can then go for another new model to lease if you so choose. But what else can you expect with car leasing, and what are its benefits? Here are the actual advantages of car leasing you should know today.
- Lower payments
The one obvious benefit of a vehicle lease or contract hire arrangement is that you have lower payments each month. This is because when you lease, you will only have to pay for the actual difference between the vehicle’s price upon purchase and its predicted/residual value at the end of your lease. Compared to a PCP or personal contract purchase agreement, you don’t have to settle any interest fees, and compared to buying, you don’t have to pay for the vehicle’s actual price.
One of the best aspects about this is that you can afford a costlier, more luxurious vehicle even if you have the same budget per month. As a matter of fact, when you compare vehicle leasing to repaying a loan on the same car, you could easily halve your monthly payments.
- A lower vehicle deposit
If you have also been looking at a PCP arrangement, you will already know that it often requires a full 10 to 20 percent deposit, so paying this initial deposit can be heavy on your budget. But if you go for a vehicle lease, you can have your brand-new model even if you settle a month’s rental fee for your initial deposit. Leasing a car is ideal for various circumstances, such as having just been hired and not having enough savings yet to buy a vehicle.
- A range of choices in brand-new car models
Let’s face it – being able to drive a brand-new vehicle is tempting, but if your budget isn’t enough to purchase one or you don’t want to spend too much of your hard-earned money on such a purchase, you’re better of leasing. It’s also better than buying a used car!
Car technology is also evolving as we write, with more features, better fuel economy, and various other improvements that include entertainment systems and more. In a few years, your still relatively new car can already feel obsolete and dated, and you would still have to drive it around for a few more years to get at least some of your investment back. But with leasing, you have a chance to choose from a range of brand-new models every few years, and you can add some extras as well, from driver technology and other advanced features to your preferred colour of paint.