In the past if you wanted a car your only option was to buy it. That is no longer the case. Just like renting a house, you can now choose to lease a car for a period of several years. During that time, you will pay an initial deposit followed by an agreed monthly payment over the course of several years. These payments vary in size but are calculated by looking at your annual mileage, model of car and size of deposit.
But is it worth it? Well, that depends on what you’re looking for. For many people, car leasing turns out to be a cheaper option than buying the car outright. However, it isn’t all about cost. Car leasing comes with a multitude of other benefits which we’ll now dig into further as we answer the question, should I lease or buy a car?
If you choose a leasing option when looking for your next car, you will be pleased to know that the contract will only last for a couple of years. At the end of it, you have the freedom to either walk away or pick a brand new car to begin another contract. With technology advancing at such a rapid rate, it can be hugely beneficial to change your car on a regular basis. You’ll benefit from increasingly intuitive safety features such as autonomous emergency braking (AEB), adaptive cruise control (ACC), and lane and parking assistance. In addition, you’ll be able to get your hands on the latest in-car audio technology and advantages of improved smartphone connectivity.
Right from the start of car leasing agreement, you have the opportunity to save money. The initial down payment is typically lower than that required when purchasing a car.
One of the biggest factors in establishing how much you will pay each month is mileage. At the start of the process, you will be asked to provide a estimate of your annual mileage. One of the easiest ways to work this out is by looking at the figures recorded at your last two MOTs and working out the difference. If your circumstances have recently changed and impacted your mileage, you might be better off writing down how many miles you do each day or week and extrapolating it out for the year. The higher your mileage, the higher your monthly repayments will be, so it’s important to be honest when you think about how many miles you do.
Choose to buy a secondhand car and you run the risk of having to pay hefty repair costs further down the line as the vehicle begins to show its age. This is a particular problem faced by younger drivers who can’t afford a brand new car but actually end up paying more in the long run to keep their car on the road. With a car leasing arrangement, maintenance can come included. For an additional monthly fee, you gain complete peace of mind. If anything unexpected happens to the car, you won’t be left facing an unwanted bill. Furthermore, you don’t have to complete an MOT within the first 3 years of having a new car! By that time, you’ll probably be onto a new car and contract.
On the very small chance that you were involved in an accident and the car was written off, you might be asked to pay the remainder of the car cost that you hadn’t yet paid. Part of the cost will be covered by your insurance but it might not cover anything. That’s why we would always recommend investing in Guaranteed Asset Protection (GAP) insurance, which does cover the difference.
If you are still in two minds about whether you should lease or buy a car, do get in touch. We will be more than happy to answer any of your questions.
If car leasing feels like the option for you, request a quote or apply for finance today.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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