Switching to a new car can be an exciting but sometimes confusing time.
Finding the right car for you and your family is one thing – but how you finance it is another.
There are so many options to consider and it’s often hard to weigh up the right way to go when it comes to your next choice of vehicle.
Personal leasing is the fastest growing form of motor finance around, according to Leasing.com – the largest dedicated marketplace in the UK for new car contract hire and leasing offers.
Leasing is like hiring, only you get a brand-new car for a longer period. And premium cars which hold their value (think Audi, Mercedes, or BMW) can work out cheaper to lease than a less premium vehicle.
Below, we’ve devised a simple list of five reasons leasing might be the best bet for you…
1. Monthly payments are fixed for the length of the contract
Very few people buy their new car anymore. Just like gym, mobile and TV services, motorists now pay to use their car through monthly payments.
Flexible terms (1-5 years) and flexible initial payments, help motorists tailor their lease to suit their Travel and specific budget.
With this in mind it helps to realise that cars are historically one of the fastest depreciating commodities you can own, with thousands of pounds wiped off the value of a vehicle as soon as it leaves the dealership and further sharp declines in the first three years of ownership. Leasing helps negate any of these ownership concerns.
And you know how much will be leaving your bank account every month, meaning you can budget accordingly.
2. Monthly payments are often the lowest of all car finance types – plus you can even add maintenance
A personal contract hire (PCH) agreement involves you signing a contract to lease a car for a fixed period of time at an agreed monthly cost.
For personal leasing (for individuals) that means cost-effective and flexible motoring which often works out as being cheaper than other forms of finance such as personal contract purchase (PCP) and hire purchase (HP).
When you come to choose your car, set a budget that suits you. Paying more upfront will reduce your monthly payments, however less at the start may suit you better? You’re in control
And because road tax, manufacturer warranty and maintenance (usually an optional extra) are included in your lease, all you need to do is take out fully comprehensive insurance before you hit the road.
3. You can often drive a more premium car than you would have done if you were buying
New cars are often far more affordable than you think and can even be cheaper than buying a used car on finance if you find the right deal.
In fact, you can often find the best lease deals on more premium manufacturers, such as Mercedes-Benz, Audi and BMW, because they hold their value better. So you could find yourself driving a more premium car than you ever thought possible
4. You never have to worry about selling or trading your car in
Depreciation concerns are a thing of the past. You don’t need to worry about selling or trading in the car at the end of the agreement, you simply hand it back.
Once your lease is finished and you’ve returned the car, you’re free to start a new lease agreement when and wherever you like.
5. You are free to go anywhere at the end of your lease
At the end of the contract, simply arrange for the car to be picked up. A representative of the leasing company will check its mileage and general condition.
Once that’s been agreed, you settle any fees you might owe (for example, any excess mileage charges) and hand the keys back. You’re not tied into any further commitments and you’re free to enter into a new deal whenever you like.
I want to lease a new car – what do I do next?
Finding your first car couldn’t be simpler – all you need to do is follow these five steps.
Browse Leasing.com and find your carSubmit a free enquiry, with no obligationDiscuss your vehicle and lease deal with the advertiser via Leasing.com’s messaging tool (free to register).When you’re happy, fill out an application. When you’ve been approved, delivery will then be arranged.And that’s it – you’ll have your dream car and be able to go wherever you like!