Ever wondered if leasing a car is for you? would it be
cheaper than buying a new car? Well in the article we answer these very
questions. The UK car leasing market is set to follow the US explosion
in car leasing in recent years as the benefits of car leasing versus car
buying becomes more well known. As dealers clear the showrooms of 2012
models to make way for the 2013 models, there are some great car leasing deals deals available thanks to very low interest rates.
If you’re considering car leasing, make sure you’ve done your
research beforehand so you can be sure that leasing is the right option
for you. Here’s a guide to some benefits of leasing a car to help you on
Drive away in a cool car
First off and one of the best
advantages of car leasing is because monthly payments are lower, you may
be able to drive a higher priced cooler car. If you can only afford so
much money per month on monthly payments, the money will enable you to
afford a cool car for leasing than you could if you were buying a new
car. Basically you maybe able to drive a car you didn’t think you could
Limited savings? Don’t worry!
Often you don’t need a
down payment at all for leasing a car and if you do, it’s usually very
small, especially compared to the down payment you’d need to put down on
a new car. Since there are less up-front costs, leasing a car is an
attractive option for many people who don’t have enough savings to spend
on a down payment for a new car.
Lower monthly payments
When you’re leasing a car, your
monthly payments will be lower than if you were to buy a new one. If you
can’t quite afford the monthly payments of a new car, leasing can allow
you to drive a newer car with less monthly costs. You don’t have to
take out a loan for it, so you won’t have to pay interest.
When you lease a car it’s usually a
late-model car with very few miles on it. Because it’s so new, you’re
less likely to have any major problems with it during the time of your
lease. If you do have any problems, it will likely still be covered
under the manufacturer’s warranty.
There are however a few disadvantages to car leasing which you should weigh up before deciding to lease a car…
Ownership – the car is never yours
since those monthly payments go on forever, and you’re only borrowing
the car, you’ll never have ownership over it. It will never be your car,
so you can never recoup any of the cost by selling it or trading it in
for a future car. You just give it back to the dealership, and start the
Monthly payments never stop
A disadvantage to leasing is
that you’ll never stop paying monthly payments. Over time, if you only
lease cars, you will end up spending more on monthly payments for
leasing than you would have spent to buy a new car. If buying a new car
is a financial option now, it may be a better way to spend your money.