So, you’re looking to lease a car for the first time? If you’re on the fence, we’re here to give you the low down on the benefits of leasing with our simple guide. Here are some of the advantages before we get started:
Did you know that with a lease vehicle you’re likely to see lower monthly costs as opposed to buying a new car on a finance deal? When it comes to leasing a car, you only pay for the depreciation of the vehicle over the period of time that you own it. The amount that you’ll pay is determined by the value of the auto when you start your contract against the price of it when you no longer own it. Depending on the deal you choose, there are many no deposit options, and you won’t be paying back any principle like with car finance - warranty and road tax are included as standard from Yes Lease, too. This means that you have more money to spend on other things each month - the ease and lower monthly costs tend to be factors that draw most people towards leasing.
If you do lease, you’ll be driving a new model or a more prestigious make than you’d be able to afford if you were to buy. The latest technology and safety features are at your fingertips every three years. New car owners can come close to monthly charges of a lease if they are willing to extend their finance to over 6 to 8 years. However, this may not always be the case. There’s a massive range of executive cars available from leasing companies, too. Not only will you have a shiny model, but you’ll also be able to get a new one every 2-3 years, depending on the length of your contract. Now, if you were to buy, then you become stuck with an auto that you might not like after a couple of years… and nobody wants that.
At the end of a lease contract, you can just hand over your car and go and pick another. This keeps driving simple as you don’t have to worry about selling the car yourself. If you have no idea what you’re talking about you won’t have to do research, which can be time-consuming. Not only this, but you have to oversee the entire process of selling - which can also take time - when you could maybe be doing other things. You don’t have to contend with the highs and lows of the used car market. If you have a busy lifestyle, leasing might be for you.
If we’re to touch on depreciation once again, you won’t suffer the repercussions of any loss of value if you lease. The car is no longer your asset once your borrowing period is over. Moreover, the future price of your vehicle is set in stone by your contract - so if anything unexpected is to happen, such as faster depreciation of your chosen model, you won’t be affected. Financial incentives offered by leasing companies mean that you can have a lower down payment than if you were to buy from new - and more often than not you can have no deposit at all. This makes leasing easier to budget for and less daunting.
Car dealers also offer PCP (Personal Contract Purchase), which is a hire option that has the added opportunity to buy your vehicle. It is similar to leasing; however, when you finish your contract, you have the option to buy the car. Now, this will involve coming up with a sum of cash known as a balloon payment. Now, usually, car dealers will ensure that the value of the car is a little more than the set balloon payment at the end of your contract. As such, if you don’t wish to buy the vehicle, dealers such as Ford, Nissan, BMW and VW will use this difference to make your next PCP contract cheaper. Thus, you’re rewarded for staying with a manufacturer, and you get a new car every three years. The advantage that leasing has over PCP is as follows. When a car dealer cannot sell a car, they offer it to leasing companies at a discounted price. This will affect the amount that you, the customer, pays as part of your contract, so it’ll be cheaper.
Another way you’ll save money is through the warranty. When you lease, you get a new car with no wear and tear. There’s no need for you to fork out on things such as brake pads or a new handbrake. Your car’s warranty is essentially as it would be if you were to buy from the manufacturer - meaning that the warranty is more than likely to cover your contract period completely. Any major mechanical issues that you experience are not going to leave you out of pocket. It’s the responsibility of the finance company to ensure that the manufacturer repairs the damage, mitigating stress and risk on your behalf. Be aware that you may have to pay some additional costs if, for example, your car has sustained some wear and tear that needs to be addressed towards the end of your contract.
Lastly, it’s extremely beneficial when leasing if you’re fully aware of your annual mileage, as this will ensure that you choose a limit that you aren’t going to exceed as set in your deal, thus avoiding additional fees. If you know that you’re going to have a stable and predictable lifestyle for the next couple of years then you have nothing to worry about with leasing. If, however, you have unstable employment, for example, then Yes Lease also offer 12-month options.
So, there you have it. Hopefully, this has given you some insight so that you can make a decision regarding leasing. If you’d like to hear more about your options or request a quote, please don’t hesitate to get in touch with Just Lease and we will answer any questions that you may have. As always, whether you’re going to buy or lease, remember to drive safe.