So you want to get a new car. It could be because your current model is on its last legs and needs replacing. Maybe your family is expanding and that sporty little model you’ve enjoyed over the years is now not big enough, nor sensible enough. Maybe it is just the right time for a change, you need something more economical, something smaller, a different model. Whatever the reason is for you changing your car, the chances are that finance will be part of the story if you choose to buy.
But there is another option, one that could prove to be the right move for you if you tend to change your cars quite often, or are just looking for a local runaround, or even if you are trying to keep your repayments low. Car leasing is growing in popularity in our fickle times where people like to change their cars as often as they change their shoes.
There are some persuasive reasons to look at leasing rather than buying a new car. One of them is related to fickleness and the newness of the car you can afford. You can definitely get a newer model through leasing, a car that maybe you couldn’t afford if you had to make a repayment each month, but could afford if you were just paying a lease payment. This works well if you have your eye on a particular make and model – your dream car maybe. This is because with a lease agreement you only pay for the depreciation of the model rather than the actual payment based on the total cost.
Auto Trader explains this a little better:-
A lease involves paying the depreciation on the car rather than the entire purchase price. For example, if you lease a
£20,000 car for 3 years and its projected value at the end of those 3 years is £12,000, then you only make lease payments on the £8,000 difference. If you had bought the car, you’d be making payments on the entire £20,000.
Leasing is also a better option if you have no deposit or want to pay a low deposit. Yes Lease, one of the leading car lease companies, works with a range of deposit options that go from zero deposit to a deposit based on three or six monthly payments in advance. This site has a wide range of lease vehicles that include a full warranty, free breakdown cover, and, in some cases, road tax.
Another plus point when it comes to car leasing is that the terms of the lease are usually much shorter than the terms on finance on a car loan, meaning that if you do like a new car every few years you are able to do so without still having to pay a loan and try to sell a car. Most lease agreements are for three years, perfect for car fanatics who quickly tire of their vehicles and want to update and upgrade.
Car leasing works best if your car is a local runaround and doesn’t do too many miles as some cars can have mileage restrictions. So if you are looking for something for shopping and the school run, or maybe as a second car option, this could be a proposition that works well, giving you a new car that should not suffer from wear and tear, helping you to keep the running costs low.
Leasing is not for everyone, but if any of the facts above apply to you, it could be a good move.