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What are the benefits of leasing?

Choosing between buying or leasing your next car can seem like a minefield. Buying gives you the freedom of unlimited mileage and the security of a financial asset. However, leasing comes with a whole lot of added value and could allow you to drive away a far better car than you could afford outright. Both buying and leasing have their benefits - here we focus on leasing specifically to help you decide if it is right for you.

1) Lower up-front costs

The biggest benefit of leasing a car, as with any item of hire, is the reduced initial outlay. You won’t need to have the funds to cover the entire cost of your chosen vehicle. Instead, you will be covering the depreciation of the vehicle over the agreed period based on the agreed mileage.

The total cost of your lease will comprise of an initial payment plus a set amount of monthly payments. The total amount you will pay remains the same but is divided into profiles that reflect the amount of monthly payments paid upfront and then for the subsequent months.

This payment structure allows you to divide up your payments in a way that suits you: because the total amount payable stays the same, putting more down upfront reduces what you pay monthly and vice versa. Leasing therefore makes a far wider, and often traditionally more expensive, range of vehicles obtainable to us with more flexibility around how and when we pay for it.

If you do have the funds to cover the cost of buying a car outright it can be more cost effective to do buy rather than leasing in terms of overall spend. However, the overall cost of leasing a car is often less than if you bought and then sold the vehicle over the same term and mileage.

2) You’ll drive a new car every few years

Because of the payment benefits discussed above, leasing means many of us can afford to drive a brand new car when we wouldn’t be able to otherwise. You will have the car for the set number of years as defined by the lease profile, swapping into another car at the end of term.

A new car is favourable first and foremost for reliability. Not only is it far less likely for something to go wrong with a new vehicle but you will also benefit from an agreed warranty package which covers you if the worst does happen. The warranty coverage will be no shorter than three years, but can be longer depending on your car of choice. As there are no previous owners, there is also no concern over usage or service history.

New cars will also boast the very latest advancements in technology. This means vast improvements in safety, usability and fuel efficiency. The latter in particular will not only benefit your fuel costs but also your carbon footprint.

Choosing to lease a new car also gives you the option to choose the vehicle’s exact specification. The Carparison team can factory order a car to suit your exact requirements; personaliasing everything from colour to styling. This will just require consideration of lead time to account for a completely new build and delivery will take far longer than a vehicle that is already in stock.

3) No concern over a depreciating asset

Car depreciation is an annoying but inevitable reality for all car owners. It is a given that only very few vehicles, classics and rarely used sports cars at that, will ever be worth more than when we buy them.

However, depreciation when leasing a car is not a concern. You are only paying for the depreciation of the vehicle rather than its whole value and this figure is set at the outset of your agreement. Furthermore, unlike with a car you own outright, there is also no concern over what your car will be worth when you want to sell it on.

There is also no hassle at the end of your lease. The car is collected from you and that is that: simple and convenient with no fees, stress or haggling when reselling.

4) Added value

Road tax and breakdown cover plus UK mainland delivery and collection are all included in your lease. If you are looking for a way to drive you perfect car for a transparent and fixed monthly fee, leasing will be right up your street.

You can also add a maintenance package that can include servicing, MOTs, general maintenance and wearable items like tyres and brake pads. This will be available for an additional monthly fee that will be included on the quote for your preferred lease deal. All you will have to do is add insurance and fuel!

5) Continued support

From the moment we receive your enquiry to the moment your car is handed back, you will have a dedicated account manager who will look after your every need.

Carparison's five star customer service doesn’t stop when you submit and order, or even when you have taken delivery of your new car. The Carparison team will be here to assist you when you need them, whenever that may be throughout your lease term (and hopefully onto the next one)!

The downsides to leasing a car

While leasing is a great option for many of us, it may not suit everyone. Before you choose to lease we advise considering these potential downsides:

1) You will never own the car.  Beyond just the security of owning a financial asset, you are also therefore limited with the customisations you can make.

2) There are mileage restrictions. As the cost of a lease is based on the vehicle's depreciation in light of a set mileage, if you exceed this figure you will incur charges when you hand the car back. This is charged in pence per mile and this fee should always be visible on your lease quotation.

3) Wear and tear inspections will apply. Every lease car is subject to the BVRLA's fair wear and tear guide which acknowledges that a returned lease car will have damage reflective of standard, but careful, use. Any damage that exceeds these standards will be chargeable on return of the vehicle. A copy of the fair wear and tear guide can be requested from your account manager at any time.

4) Leasing can be difficult if you have a poor credit rating.  In order to be accepted for a finance on a lease vehicle we will need to submit a finance application on your behalf. It does depend on the value of the lease you have chosen, but you are unlikely to be accepted for finance if your rating is not good or above.

If you are still unsure whether leasing is right for you, this handy infographic could help you decide.

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Posted on 6th November 2019 at 3:03 PM

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