If you’re in the market for a new car but simply cannot afford that nice new model you’ve got your eyes on, leasing could be for you. While you won’t outright own the car, this isn’t a problem for everyone — especially if you just need or want a new vehicle but don’t necessarily care about its resale value.
In this article, we’re going to look at why more and more people are choosing to lease a brand-new car.
Low up-front cost
While some leasing contracts do have a fixed deposit, this will be much lower than if you actually wanted to buy the car. Some leasing plans don’t even have a deposit at all, meaning you can get your vehicle and start driving simply by agreeing to a monthly payment plan.
The cost of a new car can be a lot, but with leasing you can get the vehicle you want without stumping up any savings or getting a loan — simply agree on a monthly fee and get driving. You can also claim some of the VAT back if you use the car for your own business.
You can get a brand-new, top-of-the-range car
The problem with actually buying a car is that you’ll often have to make compromises with regards to age and quality to get one you can afford. When you decide to lease, you’ll often get a factory new model with top-of-the-range extras for an affordable monthly cost. These are the cars that you see in used-car salesrooms in a few years’ time, but you get them straight away without a large up-front cost.
You leased car will normally be covered and only have one monthly price
When buying a car, people often ignore or forget about the additional costs that could soon add up. Most leasing plans include road tax, breakdown coverage and even servicing. That means you know exactly what the vehicle’s going to cost you each month (apart from fuel and insurance). Most leasing plans also include a full warranty from the manufacturer, giving you extra peace of mind.
You don’t have to think about resale value or depreciation
When you buy a new car, it automatically loses value as soon as you drive it home. Cars depreciate a considerable amount year on year. When you lease a car, you don’t have to worry about depreciation, wear and tear, or how much you’re going to get when you sell it. Just hand it back when you’re finished. You can then start a new plan for another brand-new car instead of being stuck with an old one, like you might have to if you bought it.
If you need a bit more information — or want to find the best car leasing deals in your area — check out this car leasing comparison advice website.