Why Leasing Is Right For You
There is no better feeling than getting behind the wheel of a brand new, state-of-the-art vehicle. But is it better to buy the car outright or to lease it? Both have advantages and disadvantages, and your final decision will rest on several factors, including your lifestyle and circumstances.
At Express Vehicle Contracts, we can talk you through the different leasing options and find the right deal to suit your needs.
Should I Lease or Buy a New Car?
The popularity of Personal Contract Hire (PCH) or car leasing has drastically increased in recent years. The number of lease vehicles on the road in the UK exceeds 6.5 million. It is a set-up that suits many motorists perfectly.
You determine your budget, choose the vehicle you want within that budget, and pay a set monthly fee for the leasing contract's duration. Contracts typically last between two and four years. At the end of the agreement, you hand the vehicle back.
Car leasing offers you the flexibility to change your vehicle to suit your situation or needs. Purchasing a car outright gives you ownership of the car but can still involve monthly payments to cover any finance costs, including interest. You also need to deal with selling the car when you want to change or upgrade it, and your car's value will depreciate the moment you drive it off the forecourt.
What are the Benefits of Car Leasing?
Purchasing a new car outright is costly. For example, a basic Ford Fiesta will set you back in the region of £17,500. Few people have that amount sitting in their savings, so you need to add the finance cost as well.
Car leasing provides a different route that enables more people to experience the social mobility that a car can provide.
Leasing benefits include:
· A wide range of leasing cars are in stock and ready to be delivered.
· Affordability often means you can drive a better car than expected.
· An affordable and cost-effective way to drive a new vehicle.
· Avoid the expenses and issues of ageing vehicles.
· Business leasing provides exceptional benefits for companies, regardless of their size or fleet needs.
· Drive a new car every 2 to 5 years.
· Exceptional reliability.
· Fixed cost motoring - you know precisely how much you'll pay each month.
· Help protect your savings with lower initial payments and ongoing instalments.
· Leasing places a host of plug-in vehicles at your fingertips if you are tempted to go electric.
· Most people are eligible to lease.
· No depreciation risks.
· No selling concerns at the end of the contract
· Road tax, breakdown cover, and MOT are all included.
Car leasing isn't suitable for everyone. If you aren't interested in changing your car every few years or are a classic car enthusiast, it might not be for you. Here are a few facts to consider before leasing.
· You need an 'initial payment' at the contract's start to reduce monthly leasing costs.
· An extremely poor credit rating will adversely affect your ability to lease.
· There isn't an option to buy at the end of the leasing term.
· Early termination can be expensive.
· Standard lease deals do not include insurance. You need fully comprehensive insurance cover in place for the contract's duration.
· You must remain within your annual mileage or incur additional charges.
· You must take care of the vehicle and ensure it meets Fair Wear and Tear guidelines.
· You won't own the vehicle and cannot sell it.
What are the Benefits of Buying a Car?
Buying your car outright might be the answer for you if you can comfortably manage the costs and the depreciation and like to own your vehicle for a more extended period. Benefits of buying your car include:
· Doing as many miles as you wish (depending on your insurance).
· Owning the vehicle and being able to sell it.
· Treating it as you wish.
Buying your car outright may not be in your best interests, especially if you want to remain at the cutting edge of driving comfort and motoring technology. Things to consider before opting to buy include:
· Cars depreciate and lose most of their value within the first three years.
· Finding it more difficult to change or upgrade your vehicle regularly.
· More expensive electric or hybrid cars potentially being outside your budget.
· Needing a significant lump sum or deposit that can diminish your savings
· Needing to pay your MOT, breakdown recovery, and road tax yourself.
· Repair bills that only get larger as the car ages.
· Still having regular monthly payments if you need finance to buy your car.
· The time and dedication needed to sell your vehicle.
Leasing or Buying: Which is Cheaper?
The answer to this depends on your finances and your future outlook. If you need finance options to buy outright, or your savings will take a big hit, then leasing will be cheaper. You can lower your costs further by checking out our Hot Deals. Contact Express Vehicle Contracts for more details and speak to one of our experienced team to get the right deal for you.