If you’ve always owned your own car, the landscape of leasing might seem quite alien to you. Leasing instead of buying has its benefits and depending on what you’re after (from a car and a financial agreement), leasing could be a better option for you.
These are the main benefits of leasing a car:
You don’t need a load of cash upfront
One of the biggest lures of leasing a car over buying a new one, is that to go ahead with the contract, you don’t need a big chunk of cash upfront.
When you lease a car, it’s a long/mid-term arrangement to use a car that you don’t own. It’s a way of getting a nice car while paying affordable monthly payments. Although you will usually need to pay a deposit to lease the car, you don’t have to raise the several thousands often involved in buying a brand new car.
If you’re looking for an affordable option, check out Blue Chilli leasing deals.
You can opt for a full-maintenance package
Car repairs can be a real pain, and costly to boot. If you take out a lease that takes care of servicing and maintenance, that’s one less thing for you to worry about.
This means that all the car will cost you is monthly payments, car insurance and fuel costs. Bargain!
The contract is simple – you get to drive around in a nice new car and pay your monthly payments. At the end, you hand your car back and don’t have the headache of selling it before you get a new one. So simple!
It can be easier to arrange the finance (even without an amazing credit rating)
Car leasing is a financial agreement, so your credit rating is likely to be checked. The good news is, even if you’ve had problems in the past, you’re much more likely to be approved for a car lease (providing you meet affordability checks), than a car loan.
If you own a business you can deduct some of the costs of the lease off your profit
Depending on how you use your car (and what your accountant says), you might be able to deduct some of the costs associated with leasing off some of the profit from your business which might mean you’d pay less tax.
It doesn’t matter if the car depreciates in value
It’s a well-known fact that brand new cars depreciate in value. When you lease a car, you don’t own it so depreciation won’t matter to you. Not your car, not your problem!
So if you fancy some hot new wheels, it really pays to consider leasing. With a lower upfront cost than buying, low maintenance costs and benefits for business owners, leasing could be the best option for your needs. You could be driving around in an amazing car, for a lower cost than the cost of buying it.
If you’ve got a damaged car you need to get rid of before you choose a new one, you should check out its salvage value before making any decisions.