Car leasing has become one of the most popular ways to get your hands on a new car without having to spend thousands of pounds or sign up for an expensive, long term finance deal.
Car leasing has become one of the most popular ways to get your hands on a new car without having to spend thousands of pounds or sign up for an expensive, long term finance deal. However, it can still be a very daunting idea, especially when you consider the fact that there will be monthly repayments for 3 years, typically.
So this leads you to the question; is car leasing right for you?
After all, the idea of signing up for any financial agreement can be a concern at first. So, we are going to look into Car Leasing and whether it is the right method for you.
How Does Car Leasing Work?
Let’s start by looking at how car leasing actually works. That would be the first step in determining whether a car lease is right for you.
When you sign up for a car lease deal, you are agreeing to a financial commitment to cover the monthly cost of the depreciation in value that the vehicle will face through use. This means that monthly payments are far lower than if you were to purchase the car through something like a Hire Purchase agreement. However, the key difference between purchasing the car through one of those other methods and getting a car lease deal is that, when the lease has finished, you will have to return the vehicle.
That single point is important to know beforehand; you will not own the vehicle through a car lease. Instead, you are leasing the right to use that vehicle for the length of the lease term.
What Is The Initial Payment?
Now that we have covered the fact that you will not keep the car once the lease term has ended, the next point to raise is the initial payment. Like with other financing options for cars, there is a deposit that you will need to pay upfront.
However, the actual size of that deposit will be considerably lower than it would be if you were purchasing the car outright.This makes it far more accessible than those.
That said, it is important to understand that it likely will be more expensive than a used car. So, if the initial cost is a major concern for you, moreso than having a brand new vehicle, that would mean that car leasing may not be right for you. On the other hand, if you would prefer to drive a new vehicle that is under warranty and less likely to break, then a car lease would be a much better option than an outright purchase.
Why Is Car Leasing Good?
It may seem as though there are a number of concerns when it comes to leasing a car. However, these are largely outweighed by the positives. So, now that we have looked at why a car lease might not be right for you, let’s see why it might be the best option for you;
– You will be able to drive the latest edition of the car of your choice.
– You will be able to get a higher level of vehicle that you would expect.
– The car will still be under warranty.
– There won’t be any MOTs to worry about.
– At the end of the lease, you can “upgrade” to the latest version once again, similar to a mobile phone contract.
If all of this sounds good to you, then car leasing could be exactly what you are looking for. So why not take a look around the various car lease deals we have here to see what you can get!