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What Are The Pros And Cons Of Car Leasing?

When it comes to car leasing, you need to consider the pros and cons before making a final decision. To help you make that decision, we’ve outlined the pros and cons of car leasing below. If you do have additional questions or concerns, however, please do feel free to get in touch. We are more than happy to help.

What are the pros and cons of car leasing?

The Pros

Always Having The Latest Model

Choosing car leasing gives you the opportunity to change your car on a more regular basis. With contracts typically only lasting a couple of years, you can be sure that you’ll always be driving one of the latest models. That means more intelligent and automated safety features, higher quality in-car audio technology and the latest advances in parking assistance.

You Can Save On Maintenance Costs

Buying a secondhand car can be a risky business. The older they are, the greater the wear and tear and so the greater the likelihood of something going wrong. Whilst the initial low cost of buying a secondhand car can seem attractive, the maintenance costs soon mount up and you can often end up paying more in the long run. With a car leasing contract, you will be given a brand new car in the best condition possible. In the unlikely event that the car does run into problems, you don’t need to worry about a hefty repair bill. Most car leasing agreements include maintenance cover.

There’s No Need For An MOT

Under current UK law, a car does not require an MOT until 3 years after its initial registration date. Given that car leasing agreements use brand new cars and tend to last under 3 years, there is an excellent chance that you will never have to take your car in for an MOT! That’s one less thing to think about.

Manageable Payments

With car leasing, you have greater control over how you pay for you car. One option is to put down a large deposit at the start of the contract and then save money over the course of several months. Alternatively, if your financial position doesn’t allow you to do that, you can instead spread the whole cost of the lease across the length of the contract, without a large lump sum deposit.

The Cons

May Require GAP Insurance

In the unfortunate situation that you are involved in an accident and the car you’re leasing is written off, or if your car is stolen, your contract may require you to make a payment that covers the remaining finance you’d originally agreed to pay. This payment may exceed the amount that the insurer is willing to pay out, given that cars a depreciating asset. However, you can guard against this eventuality with Guaranteed Asset Protection (GAP) insurance. This type of insurance will cover the difference between the insurer’s offer and the original price you agreed with the car finance company. It’s there to protect you from any nasty surprises.

Passing The Credit Check

If you’re a young driver who has only recently passed their driving test, you may struggle to successfully pass a credit check. Many financiers consider a lack of credit history to be akin to poor credit and so will not agree to your request. To get around this, we would recommend that you look for a guarantor. In the event that you are unable to keep up with your car payments, it would be their responsibility to pick them up. This can be any responsible adult that you trust and who has a good credit history.

If car leasing feels like the option for you, request a quote or apply for finance today.

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Posted on 8th February 2019 at 5:24 PM

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