There’s always slight hesitation when it comes to car leasing, as people might not know what it actually is and how it can benefit you. There are different types of leasing, and each one can be tailored to suit each person.
You’re also able to choose the length of time you would like to lease the car for, which usually ranges between 2-4 years; but it all depends on the kind of deal you’re looking for. Here are some of the pros of leasing:
Monthly payments are low
This is always a huge plus point, as being affordable is a huge concern for many people. With leasing, the lease payments are around 30%-60% lower than a purchase loan.
In many cases with car leasing, servicing is often included in the leasing deal, so the cost of repairs is significantly reduced. The down payment is also lower or not needed, and you’re only taxed for the portion of the car you finance.
Flexibility is a huge positive when it comes to leasing, as having bad credit is a huge worry for some car owners. But with leasing, you’re able to get bad credit deals as well as no deposit deals, along with plenty of other options which include: personal and business leasing, PCP, hire purchase and PCH.
With leasing, you have the opportunity to drive around in a better car for less. You’re able to choose a car which you may not have been able to afford if you bought outright. As well as having a better car, you’re given the option to change it once your contract has ended, meaning you can get yourself an even better car and keep your appearance up to date.
There’s no need to worry about selling the car afterwards (which is usually a struggle for car owners) as you can just return the car at the end of your deal; it’s as easy as that. As well as this, depreciation is a common worry when you have to sell your car, as you lose a fair chunk of money. However, with leasing this isn’t a problem at all.
■ Personal car leasing: The perfect option if you want a car for your own leisure.
■ Business lease: Ideal for commuting to and from work and/or travelling for business purposes.
■ No deposit lease: Putting down a deposit is optional, but your monthly payments will be higher if you don’t.
■ Bad credit lease: The best option for those with poor credit concerns.
■ Personal contract purchase: Fixed monthly payments and optional ownership at the end of the deal.
■ Hire purchase: Fixed monthly payments and a balloon payment is available to lower monthly payments. The vehicle then becomes yours.
■ Personal contract hire: Fixed monthly payments and then a return at the end of the lease period.