What are the benefits of leasing a car?
Leasing a car can be a great option for people that cannot afford to purchase a vehicle outright. We take a look at a number of advantages that can make leasing a very attractive option.
The primary benefits of leasing include:
- You can drive a car that would otherwise be out of your price range
- Does not always require a deposit or down payment
- Monthly payments are lower than a conventional car purchase
- In many cases you will not have to worry about road tax
- Much lower maintenance costs than other forms of buying
- After the lease period you can exchange the car for a brand new vehicle
- Avoid depreciation costs
See below for more detail on why these could make leasing a car the best option for you.
Up front payments when leasing
Car leasing does not always require a deposit or down payment. However, there will almost certainly be registration fees involved. Many car leasing options only require minimal deposit and a much lower up-front cash payment is required than if a car were to be purchased outright. This can make it a more affordable option for a wider range of people.
Because ownership of the car does not pass to you during the lease period, the monthly payments are significantly lower than a conventional car purchase, usually by between 30% and 60%.
A fixed monthly payment amount will be agreed upon at the beginning of the contract term and most leasing periods last around two to four years - though other time frames can be arranged in certain circumstances. Thanks to the low cost fixed monthly payment schedule, you have the advantage of having more disposable income to spend in other areas.
Tax benefits with car leasing
When leasing a car, in many cases you will not have to worry about road tax and ensuring that you are up-to-date on payments, as it can be covered in the agreement for the duration of the lease period. That's added peace of mind.
Maintenance on your lease car
Leasing provides much lower maintenance costs than other forms of buying. This is because the person leasing the car does not retain ownership, so general maintenance costs are covered by the manufacturer's warranty period. If the car being leased requires servicing or repair, the costs will be covered; this usually includes tyre and exhaust replacement.
After the lease
After the lease period you will be able to exchange the car for a brand new vehicle. This means that you will be able to reap the advantages of having a new car on a regular basis, allowing you to get the maximum benefits of fuel economy, performance and safety. It also means that you will be able to avoid massive depreciation costs, as you do not own a vehicle that is likely to be rapidly losing value.
Another of the primary advantages of leasing is that you will be able to drive a car that would otherwise be out of your price range if it were to be purchased outright. For many, this is one of the biggest attractions of car leasing.
At Lookers we have a specific leasing division, Lookers Contract Hire, who can help answer your questions on both personal and corporate car leasing. With a full range of leasing options on almost all cars currently in the market, Lookers Contract Hire provides great cost and choice when looking to lease a car.