Why Should You Lease Instead of Buy a Vehicle Outright? Your Main Questions Answered
Sep 11, 2020 20:37
A sleek and shiny new vehicle is the dream of many, but even if you are simply looking for a car to take you from point A to point B and are not too concerned with specific models, it still pays to make the right decision. But when you have decided to get a car or vehicle, you have two main choices: should you lease, or should you buy? Nowadays, more consumers are opting for car leasing or contract hire not only because it allows them to save money on expensive down payments, but also because they can get a few other advantages besides. So why should you lease instead of buying a vehicle outright? Here, your main questions are answered.
•A low payment per month
When you lease rather than buy, you can expect lower payments per month for the vehicle. In leasing, you will only have to pay for or settle the difference between the vehicle's purchase price as well as the vehicle's residual or predicted value once the lease ends. You will not have to make a payment for the entire vehicle, and what this means is that you can drive around in your dream model – a car that you've always wanted but could never afford – on the same budget per month.
•A selection of brand new vehicles
Car leasing also gives you a lot more options for brand new vehicles. The range of cars for leasing can be quite extensive, and you can drive an entirely new model in no time, without having to contend with the cost of down payments and other expenses associated with buying. In fact, those who have opted for car leasing use their vehicle and then get a vehicle upgrade after a certain period, so they are always guaranteed a new model every few years.
•A lower deposit
Many financing products or deals often require a hefty deposit, sometimes as much as 10 to 20% of the price of the vehicle. This makes your initial or first payment taxing on your funds. But with car leasing or contract hire deals, even if there is an initial deposit or payment, it doesn’t have to be as heavy on your wallet as buying a brand new vehicle, and your monthly payments will be lower as well.
•Stay away from extra expenses
When you lease and use a new vehicle, you know very well that it will not have any of the problems associated with older or used models. And even if the vehicle does need repair at some point, this will often be covered by the warranty as well. Here’s another thing: many car leasing deals will cover routine servicing if you opt for a deal with car maintenance, and these deals can even come with repairs and high-end tyres and other components depending on the package. Also, since you are driving a new vehicle, you don't have to deal with the MOT, which is not a requirement until a vehicle has already been used for three years or more.
Last, but certainly not least, with vehicle leasing, you don’t have to worry about the road tax on the car, otherwise known as Vehicle Excise Duty. This will already be included in the contract, which means that you don’t have to come up with this extra amount every year.
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