5 Benefits of Car Leasing
Personal car leasing or personal contract hire has become increasingly popular in the UK, yet many drivers who could benefit from car leasing are still taking out loans, hire purchase and personal contract purchase agreements in order to finance their vehicle. So we thought we’d give you the run down on the benefits of car leasing.
Most people who are reluctant to lease admit that it is due to lack of knowledge about leasing and confusion about the jargon involved. With leasing becoming a mainstream alternative to buying, the question is whether it is the right option for you?
What is Leasing?
Leasing a car is similar to taking out a long-term rental. To lease you pay an initial payment usually equivalent to a few months payments but sometimes as low as just one month, followed by a series of fixed monthly payments for the length of the contract. Leasing is usually available on brand new cars on contracts between two and four years. With a lease car you won’t be the legal owner of the car, it will be owned by the leasing company. You will however get to treat it like your own car until it’s time to give it back and make and move to a new deal – ideal if you like a brand new car every few years.
Why choose to Lease?
One major positive of leasing your vehicle is price. Your monthly payments will usually be lower as you will not need to pay back capital as you would with a traditional loan. Also, only a small deposit is necessary often amounting to just 3 months payments.
Leasing a car can open you up to a whole new world of choice when it comes to the car you end up having. This is because leasing a premium car can be a whole lot more affordable than buying one would ever be. Plus the car you lease can be tailored to your preferences and is delivered straight to your door. In summary, with the cost advantages of leasing this means you can choose to save the pennies or to drive a higher priced, better spec of vehicle than you might be able to afford with a traditional loan, hire purchase or personal contract plan (PCP)
With leasing your vehicle is likely to be new and newer cars need fewer repairs and are usually under manufacturer’s warranty. A new car is likely to be safer and more reliable and having a brand new vehicle means that you get to drive a vehicle in it’s most trouble-free years and you won’t have to foot the bill for expensive repairs.
We all know selling a car can be a hassle however with leasing you skip this completely. At the end of the lease you return your vehicle and are free to lease a new car. Consequently, you don’t have to worry about fluctuations in the car’s trade in value or go on with the hassle of selling it when it’s time to change vehicle.
Finally if you own a business there can be significant tax advantages. This is something your accountant can give you guidance on but we can arrange on a business or a personal contract.
Why choose Prospectus?
Find your perfect car, check out our home page for a guide price or get in touch for a bespoke quotation.