More people in the UK are now choosing to lease rather than buy a vehicle, and there are plenty of good reasons why they are doing so. One reason is that if you rent a car, you don’t have to come up with a significant amount as your initial deposit, and it is a cheaper alternative to buying a car. Yet another reason why car leasing is more popular nowadays is that consumers are savvier – they know all too well that it will depreciate when they own a car. Its value can decline by as much as 30 percent in its first year alone. Selling it for a reasonable price after a few years of use will not be that easy. But what are the other aspects of car leasing that make it a feasible choice? Here are the top three facts about car leasing you should know.
- It’s simple and easy
There’s a lot of stress often associated with buying a vehicle, and we are all aware of this – from credit rating checks and income checks and so on. But it’s not the same as when you lease because, with leasing, the process is simple and relatively easy, and pain-free. You can choose the vehicle you are interested in, ask for a quote from the provider, and apply for financing if you agree with the rates and terms. Then, once you have applied for financing and are approved, all you have to do is sign the contract and work out the delivery schedule with the leasing firm.
- The price is fixed
Admittedly, purchasing a car is a big decision, and it could be one of your most significant financial decisions, next only to buying a home. So make sure that your payments are affordable and fixed so you can plan your budget accordingly. But contract hire and leasing are better than buying because everything is at a set price. You have a set monthly payment, and you don’t have to deal with any grey areas regarding equity or mileage. You can agree on a fixed mileage allotment for the year and not go above this limit (and this is why it’s better to leave a little room for extra mileage, so you don’t have to pay a fine or penalty). But once you have agreed to the terms, you will know precisely how much you need to pay each month, with no extras or hidden fees.
- Stay away from additional costs or expenses
Another great benefit of a vehicle lease is that you don’t have to contend with additional costs or expenses. Think about it: you have a new vehicle, so you don’t have to have an MOT on the vehicle. Under the law, an MOT is not necessary until a car is older than three years, and this means that you can avoid this additional expense.
Also, newer vehicles will not experience too many issues compared to old ones. But even if they do, you can go for a vehicle lease package with maintenance where your vehicle has breakdown coverage, glass protection, and even a relief vehicle. Here’s another thing: your road tax or Vehicle Excise Duty is often part of your deal, so you don’t have to worry about this, either.