The Benefits of Car Leasing
Purchasing an automobile is a huge expenditure and one which can have a serious impact on finances. Not many are able to afford to buy a car outright without it putting a huge strain on their financial situation, but fortunately, there are excellent alternatives available. One of the fastest growing methods is leasing, which works very well for many different types of motorists for a number of reasons.
What is Leasing?
Before getting into the benefits of leasing, it is worth defining exactly what it is. Car leasing involves making monthly payments on a vehicle for an agreed period of time. This will be less than an outright purchase and you simply return the vehicle at the end of the agreement where you can then take out a lease on a newer car. Sometimes there will be a deposit or registration fees involved, as well as mileage limits. Additionally, you never technically own the car when it is leased.
If you’re dealing with bad credit a car lease deal may still be available. Some companies specialize in leasing for those with a bad credit history.
So, what are the benefits? The first is that it can be an affordable way to drive a vehicle that would otherwise be out of your price range and the monthly payments are relatively low in comparison to other finance methods and always fixed. Maintenance and road tax costs are usually covered in the deal. This can make it easy to manage your finances and you know exactly how much you will be spending on driving each month.
Another huge advantage is that you can sidestep depreciation as you simply return the car at the end of the agreement and do not have to worry about selling it. This is important, because new cars can lose as much as 60% of their value after just three years of ownership. Leasing periods usually last between two and four years, after which you can upgrade to a brand new car with a company like Car4Leasing. This makes leasing a great option for those that are not concerned with ownership and like the idea of driving a new car every couple of years.
Overall, leasing is a superb option, as it is a cost-effective way to drive a brand new vehicle without the worry of losing a large sum of money when you go to sell it in the future. Instead of falling victim to depreciation, you simply hand the keys back and take out a new lease on an even newer and more impressive automobile.
This is a collaborative article.