The Benefits Of A Car Lease Deal Over Ownership
Why is car leasing becoming more popular?
Car leasing has continued to become a very popular trend over recent years, as it’s a great way for drivers to get their hands on a brand-new car at an affordable price. While buying a car has traditionally been the norm, leasing offers a unique way to use a new car without having to deal with loans and complicated finance matters. When signing your contract, leasing companies deal with all finance-related issues – like interest rates, monthly fees and most importantly, selling the vehicle on your behalf at the end of your contract.This saves you from having to talk with the bank, reducing the need for complicated loans, large down payments and, on the dealership side, pushy salesmen trying to upsell you.
While everyone enjoys the convenience and saving money upfront, at this point you’re probably wondering: what’s the catch? Truthfully, there aren’t many. Just read on to discover the benefits of leasing and how it provides an often much better alternative to buying a car.
1. Car leasing makes more financial sense
Leasing a car tends to make more financial sense, taking into account that you’re driving a brand-new vehicle with less chance of maintenance issues. You pay a set amount of money every month, which never changes after signing your contract. Leasing companies have a wide range of models to lease, so you won’t be short on options. And lastly, if you choose a vehicle that holds its value, you’d be saving money if you bought that vehicle, it depreciated and then you had to sell it on. Finding a great car leasing deal can be simple enough, if you search online and looking at various options.
If you’re leasing, you’re less likely to pay high upfront fees when signing, because:
- Leasing requires an initial rental, which is generally much lower compared to buying a car. This amount can be negotiated, depending on your needs.
- You’re given a break on sales tax because technically you don’t own the car.
- If you’re a business owner, it can be a viable business expense for your company.
Simply put, because you don’t own the vehicle, you don’t deal with typical expenses. You don’t have to worry about depreciation, one of the biggest downsides of car ownership.
2. It’s a less-stressful way to drive a car
If you’re leasing a car, you generally don’t need to worry about maintenance or too many responsibilities because all leased cars are brand new. This means that you’ll end up with a low-mileage vehicle that is always covered by the manufacturer’s warranty. If anything serious breaks, you can either have that covered by the warranty – or, if you’ve taken out maintenance in your package, this should cover it too.
Let’s take a look at some of the other reasons leasing is a stress-free alternative:
- Stated before, a brand-new car means none of the issues associated with a used car. There are no hidden surprises, and any major issues are covered by your manufacturer’s warranty.
- Taking out maintenance with your lease, which is highly recommended, means that all maintenance work on your car is carried out free of charge. This should help you pass your Ministry Of Transport (MOT) test after three years if you’re based in the UK.Taking out maintenance with your lease, which is highly recommended, means that all maintenance work on your car is carried out free of charge. This should help you pass your Ministry Of Transport (MOT) test after three years if you’re based in the UK.
- You don’t have to worry about depreciation, or selling the vehicle on. Simply return it to your dealer, and they’ll deal with the rest.
- Your leasing company should help you take care of the process, as they hold responsibility for the vehicle too. This means no bank visits, no complicated finance meetings and no loans.
While buying a car has been a conventional way to drive a car, leasing provides a much simpler alternative should your lifestyle suit it. If you’re looking to drive a brand-new car, pay low monthly payments and simply give your car back when you’re done driving it, leasing could be for you! If you’re not sure, here are some questions to ask if leasing is for you.
3. Vehicle technology is constantly improving
As technology constantly improves, so does the need to replace it – or, at the very least, update – the vehicle that you drive. Similarly, as we’ve become accustomed to often changing our mobile phones, so it is with the cars that we drive. If your vehicle manufacturer hasn’t got a set approach to updating in-vehicle technology, it may be the case that this will soon be outdated.
As most lease contracts are typically 36 months, it’s unlikely that you’ll be stuck with outdated technology for very long. Being able to quickly to replace your vehicle with a brand-new model will ensure that its technological components are entirely up to date. As an added advantage, you won’t be stuck with the hassle of trying to sell a technologically outdated vehicle. Once again, this responsibility falls on the leasing company.
Technology that we can expect to appear more often will include:
- Advanced driving systems like driverless features, advanced cruise control and parking assist.
- Next-generation safety systems like intuitive braking, obstruction detection and satellite route planning.
- Data-driven assistants that leverage personal data and mobile phones to perform tasks while driving.
- AI-driven interfaces to assist with engine performance, fuel efficiency and route planning.
When buying and owning a car, there’s a chance that vehicle was bought already used. As a result, the technology in it is already outdated, and will only continue to age. If this technology has a chance to improve your driving, or even save your life, would it not be a consideration to have the most up-to-date technology available?
4. Don’t worry about your trade-in value
Even though buying a car is considered one’s second-biggest purchase, a common misconception is that cars hold their value well as assets. Unfortunately, modern manufacturing processes, lesser-quality materials and rapidly-advancing technology don’t necessarily mean this is true. The AA notes that after just three years, cars can depreciate by up to 60%, making them worth only 40% of their original price.
Leasing is a great solution to the problem because the car is not your responsibility to sell on. If you’ve planned your lease carefully and selected the right vehicle, you can make money when taking overall buying and depreciation costs into account.
When the time comes to get a new car, or when your lease expires, you simply hand your lease in and get the newest model in return. While this sounds unconventional, with enough planning, this once again starts to make sense.
Why leasing a car is a smarter choice overall for the modern driver
Leasing provides a modern alternative to car buying, which is no longer what it once was. If you’re the type of driver that loves to drive a bargain on a purchase, uses a car just for transport, doesn’t mind maintaining the car yourself and likes the thrill of selling it on – owning a car could be an option for you.
However, if the type of car you drive is important for you, you’re looking for a brand-new car, don’t want to deal with maintenance or reselling and like the option of having a choice of different vehicles – leasing is the answer. Added benefits include not having to deal with the logistics of owning a car, having to deal with massive upfront costs and always having a car that is up to date. For most people, the advantages of leasing a car often far outweigh the disadvantages. You’ll be exposed to a new way of driving and car ownership that is vastly different from that of conventional buying.