When it comes to buying a new car, it’s likely that you have two main choices: leasing or buying. Both have positives and negatives, but leasing has become increasingly popular over the past few years, and with good reason. In this post, we take a look at the advantages of leasing over buying.
Regular New Cars
If you’re a petrol head who loves driving a new motor, then leasing has one main upside for you: new cars. With leasing, you get a new car every few years, so it’s great if you love driving the latest model.
Low/ Non-Existent Down Payment
When you buy a new or used car on finance, you need a huge down payment; often one in the thousands. However, with leasing, you often don’t need one at all. If you do need one to set up the deal, it’s normally only a couple of hundred pounds, too. So it’s more affordable upfront.
Monthly Repayments are Lower than a Loan
Plus, when you lease a car, the monthly repayments are often lower than if you’d taken out a bank loan to buy a car outright. Admittedly, this isn’t always the case, and much of it will depend on your credit rating; but it’s broadly true.
Most Warranties Cover the Vehicle
When you lease a new car, you often also have trouble free motoring. This is because the car’s warranty will often cover it for the duration of the lease. So, if your gearbox goes, your starter motor fails or you need a new suspension system, there’s no need to worry. The manufacturer has got you covered.
No Depreciation Worries
Finally, when you opt for leasing rather than buying, there’s no need to worry about depreciation. When you buy a car, as soon as you drive it off the forecourt, it starts to lose value.
Plus, for every mile you put onto it, it decreases in value even further. However, with a lease, you have no such worries, as you simply hand it back in a few years in exchange for another brand new model.
Of course, there are also downsides to leasing, so you’ll need to study these in detail before making a decision. If you’re seriously considering car leasing and an option, consult professionals. This way, you’ll get all the information you need about whether car leasing is right for you.
