Mouprise.com

Is car leasing the right choice?

Car shopping can be an extremely exciting time as you can drive around numerous dealerships and try out a variety of different cars until you find the one that feels right and is great to drive.

However, it can also be an annoying and to some extent annoying time as you struggle to find a car that fits your individual circumstances – and budget – whether you like the real thing or not. And yes, there’s always the opportunity to buy the car with a finance deal, but even this can mean you have to settle for a car you don’t really want but should get because it’s affordable and meets most of your needs.

However, while there’s not much you can do about car prices—even once you’ve haggled with the seller to get the price down, it may still be more than you expected to pay—there is something you can do. in terms of the way you buy the car and it’s something that has become extremely popular in the last 12 months. Car leasing was once the option followed primarily by large companies, but it was used by almost 60% of all car buyers when they obtained car financing from dealers in the first half of 2010.

It appealed to businesses because it allowed them to supply cars to their employees without paying full price for them. The way car leasing works is simple, and at its most basic, it’s just a case of a person or business leasing a car from a leasing company, paying you a monthly fee to do so, and delivering the car to you. once the lease is up. Some agreements (like PCP) allow people the option to buy the car at the end of the contract if they choose. In effect, it’s just a long type of car rental. It has been the perfect solution for obtaining company cars for years as it means the company does not have to pay the full cost of the car, which can often be a considerable amount if there are multiple employees requiring vehicles.

So how does this benefit an individual car buyer who can’t afford to buy a car outright or with financing?

Car leasing has become particularly popular with non-company car buyers in recent years and gives them exactly the same privileges as if they were a company, allowing them to lease a car for a predetermined period of time. The reason it may be of benefit to people who can’t afford a car by other means is that since you don’t actually own the car, you don’t have to pay full value, which means if you were to buy a Volkswagen Golf Hatchback using a loan or hire purchase could end up paying around £496 a month for four years or on a car lease it would cost £264 a month.

What if you really want to buy the car?

Simple: The most common lease agreement known as PCP allows you to pay a set amount of money after the lease is up, which will act as the final payment on the sale, meaning the car will be entirely yours. Car leasing may not be something you’ve researched very deeply in the past, but if you’re considering buying a car and can’t afford to do it outright with cash, it’s highly recommended that you take a look at the many benefits. of the lease.