It can be a little bit intimidating when it comes to deciding how to run a car.
You can buy, lease, or hire purchase. If you get it wrong, it could end being a costly mistake.
We recently had a client take a car lease who had bought a car, 4 years old, but on finance. The car’s head gasket went, the engine seized and the cost of fixing it was much higher than the actual value of the car. He ended up walking to work and taking buses for 6 months whilst he finished paying the loan for a car he no longer had.
That’s an extreme example, but it’s pretty common, so the worry is there.
Car leasing is a great option because for most people it’s never a bad option. The reason is, it’s the option with the least risk. You get a brand new car,no car tax, no MOT, and full manufacturer's warranty. There are no other costs besides insurance and fuel.
You pay an initial fee, which is normally 6 or 3 months payments upfront. We often have cars on zero upfront payment, to help people who just don’t have the cash. From there, you have a set monthly payment, for a set period of time and it won't fluctuate. You can budget your finances with it easily.
You never own the car so if something goes wrong, it’s the problem of the finance company. It’s as risk-free as owning a car can be.
The only person I would warn against taking a car lease deal is someone who really can’t be sure how secure their job is. If you think you might struggle to make the repayment, then don’t take it up. It might be better to drive a banger around for a while until you have that job security. Otherwise, car leasing is a good fit for everyone, because it’s low risk and straight forward.