The Benefits of Car Leasing
Advantages of car leasing
Leasing allows you to get a brand-new car on your driveway for what is usually a lower monthly cost than other finance methods. Because you’re essentially renting the car, you don’t have to worry about depreciation and can just change into another new car at the end of the rental period. Most lease deals are only two or three years long, with no pressure to buy the car at the end of the agreement.
At the end of the contract, you simply hand the car back to the finance company with no costs to pay (providing you’ve kept to the T&Cs), or start afresh on another contract with monthly payments. It means you’re not tied down to a long contract and there’s very little long-term commitment involved. You’re free to move on without having the hassle of selling or trading the car.
Because PCH deals are on brand-new or pre-registered cars, they’re still covered under the manufacturer’s warranty. The length of the contract normally means that the car is warrantied for the entire duration, so you don’t have to worry about potentially expensive repair bills. New cars are far less likely to have faults but, if something does come up, the lease company should sort it out and get it back to best condition. You might be offered ‘gap insurance’ as part of the contract, which means you don’t have to pay the rest of the contract if the car is stolen or written off.
The monthly costs of leasing a car can often be lower than the costs involved in PCP finance deals, because there’s not really an option to buy the car at the end of the PCH deal. Think of it as renting the car for a couple of years, like renting a house instead of paying mortgage payments. Besides the initial rental (which is sometimes cheaper than a finance deposit), there aren’t any extra charges and it means you can drive a new car, or a more expensive and better-equipped car, for less money than you might expect.
Should I lease a car?
Leasing could be the perfect way into driving a new car and avoiding the hassle of selling it when you don’t want it any more. However, it’s not for everyone, so you’ll need to weigh up whether it’s for you and if you like the look of it.