In recent times, there has been a sharp rise in the number of people that are leasing a vehicle as opposed to a traditional purchase. It is easy to see why because this can bring a host of benefits and is particularly well-suited to those that like the idea of driving a different car every few years.
Different Types of Leasing
First, it is worth looking at the different types of lease available:
Personal Contract Hire (PCH) – Monthly payments are made over a pre-agreed term (usually between 2 and 5 years) after which you hand the keys back. There are usually low monthly payments and provides the option of driving a new car every few years.
Personal Contract Purchase (PCP) – PCP is similar but at the end of the term you have the option to purchase the car with a balloon payment.
So, what are the benefits of leasing?
Driver Better Cars
You get more for your money when leasing because you are only paying for the car’s depreciation for the lease period as opposed to the value which is what you pay with a traditional purchase. This means that you can drive better cars than if you were purchasing.
Change Cars Regularly
Leasing also provides the option for driving a new car every few years. In addition to being a pleasant experience, this also means that you can benefit from the better safety, efficiency and performance that you get with new cars.
A major downside to purchasing a car is depreciation (particularly buying new). A car starts to depreciate in value as soon as it leaves the lot which means that you could lose out on thousands of pounds when the time comes to sell. This is not an issue with leasing because the car is not your property and you simply hand the keys back at the end of the agreement.
Easier to Manage Finances
Many people find that leasing can also make it much easier to manage your finances each month. Many car leasing companies like ZenAuto can include expenses in one monthly payment so that you only have to factor in fuel and insurance.
These are just a few of the benefits of leasing a vehicle but there are many more. It can be a smart move financially, plus it also means that you get the benefit of being able to drive a new car every few years without having to worry about selling and depreciation. Additionally, there is usually great flexibility so you should be able to find a deal that suits you.