The benefits of car leasing
Car leasing has seen a significant increase in recent years as consumers look for ultimate convenience for their transportation needs. Additionally car lease companies have become increasingly competitive in order to win your business, which is great news for you. In this guide we look at the benefits of car leasing, and how it can make your life easier.
The rising popularity of car leasing
Car leasing (otherwise known as personal contract car hiring) has always been a common choice for consumer transportation needs, however, recently it seems that consumers are finding this method more convenient than ever. That said, there are many people who remain loyal to purchasing cars on loan, on Car Finance or through hire purchase. This is because many people may misunderstand the concept of car leasing.
Research is vital
Consumers who are prepared to do a little research will always get a better deal on their car leasing than one that aren’t. Many people place all the importance on selecting the right make, model or year car, however, it is just as important, if not more so, is looking into car leasing.
Car leasing may be suitable to people who do not wish to deal with the problem of an ever depreciating car that, no matter the continuously lowering value, must always repay the same amount. Such a situation is nothing short of nonsensical, after all, a consumer will end up paying way over the odds for what, at the end of the loan term, is worth anything up to half the value of the amount repaid.
Why car leasing offers a solution to car depreciation
Car leasing offers the savvy a consumer an answer to the depreciation that cars suffer from; the driver pays a monthly payment, each and every month, which generally lasts for between 24 to 48 months. Following the completion of the agreement, the car is returned to the leasing company.
• When compared to car loan repayments, car leasing payments can be anywhere between 30% to 60% cheaper. Additionally a car lease often only requires a small deposit. And there are even deals for car leasing with no deposit.
• Consumers are able to choose from a range of cars that may others wise be unavailable to them if they were purchasing, or using a hire purchase.
• Additionally savings can be made through not having to pay road tax (as usually this is covered by the lease company)
• Consumers can benefit from improved financial management, and will never have to face a huge repair bill again.
There are many reasons why a person would want to lease a car; however even those that think they may not benefit as they choose to purchase a car through a loan or hire purchase can actually make quite a saving.
Repairs on a leased car
If the car got damaged or broke down during the leasing period, your car insurance will cover all the costs for the repair. But you still will be due the rest monthly payments to the leasing company.
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