In some circles, leasing gets a bad reputation. While there are various reasons why this might be the case, it typically boils down to one point: you don’t actually own a leased vehicle once the agreed terms are completed.
Despite this, car leasing continues to grow in popularity in the United Kingdom. According to statistics, the UK only sits behind China and North America.
If you’re wondering why this is the case, below are five reasons that spotlight the advantages of leasing a car has over buying:
1. It is the more affordable option
If you want to purchase the same car that’s available on lease, make no mistake: the latter is going to be more affordable. Car leasing companies are always offering competitive market rates, which makes the monthly repayment plans particularly enticing on modern vehicles.
Plus, a lease is naturally going to be cheaper than financing. When you finance a car, you’re paying for the whole vehicle. When you lease a vehicle, you’re paying the deprecation the vehicle will suffer during the time you operate it.
2. You get to enjoy a better quality car
Due to it being more affordable, you’ll inevitably find yourself driving a better-quality car than if you bought one outright. The reduction in price opens the door to more modern and even luxurious options.
This isn’t just great for driving a flash motor, either. You also get to benefit from the latest technology and safety features. Better fuel efficiency means you’ll spend less money at petrol stations, and additions like AEB (Autonomous Emergency Braking) help keep you protected on the road.
3. Avoid tying your money up in a depreciating asset
A car is one of the most infamous assets when it comes to depreciation. Unless you’re investing in a classic motor or one-of-a-kind vehicle, the value of the purchase will inevitably plummet. This is particularly the case when buying new.
When you lease, you’re not tying your money up into something that is continually depreciating. You pay for the miles you put into the car. That’s it.
4. Available to those with bad credit
If you try to purchase a brand new car with financing, your request will likely be rejected if you currently possess a substandard credit rating. This isn’t the case with leasing.
CVS Ltd is a popular and long-standing nationwide car leasing outlet, for example, and they are known as the “home of bad credit car leasing.” Their aim is to help those with poor credit or no credit history, ensuring everyone can receive affordable leasing terms on their vehicle of choice.
5. Less likely to be hit with maintenance bills
Another advantage of leasing a modern car is that you’re unlikely to suffer from any breakdowns. Plus, if something does end up going wrong, the vehicle will tend to be covered by the manufacturer’s warranty.
Oh, and because a car doesn’t have to go for an MOT check until they’re three years old, this is one hassle you typically won’t have to deal with – the lease terms will likely have ended, and you’ll already have moved onto a new motor.