When it comes to looking for a car, many people will not think of any option other than buying, even if that means their choices are restricted by their current finances or other circumstances.
However, leasing a car is an alternative that works for many people. It offers advantages in terms of spreading the payments out, the contract can include a maintenance fee to ensure any problems don’t lead to a sudden large bill from the garage and you don’t have to worry about the value of the vehicle depreciating.
So, is leasing right for you?
The factors mentioned above are important issues for many. If cost and convenience matter most to you, then leasing is a great idea. Cost because, as mentioned above, cash-flow is less of an issue. Convenience because you can simply hand the car back at the end of the lease without worrying about finding another buyer.
Leasing can also enable you to enjoy a better quality of car, one that is new and has the latest devices, as well as a better one than you would otherwise have due to the spreading of the cost and the fact you don’t need to worry about depreciation. And because leasing is a short-term way of running a car, you can replace each motor with another new, high quality one.
However, it is important to consider circumstances in which leasing may not be the best option, as there are certain restrictions in a contract.
These include mileage, which means if you are likely to exceed this you could incur a significant penalty, maybe as much as 25p per mile. Similarly, the contract may prevent you taking the car abroad, unless you get written permission or pay a charge.
Other restrictions include you not being able to make modifications to the car, while if you incur more than a ‘reasonable’ level of wear and tear you could also incur a penalty, so harsh driving is out.
Finally, don’t lease a car in times of financial uncertainty, as you cannot cancel the contract without incurring a large penalty fee.
So when thinking of leasing, take your time, think carefully and consider all these factors.
Here is an infographic that could help you decide if personal leasing is right for you.