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The main benefits of car leasing

The car has become an almost essential part of our lifestyle. However, the current tough economic times have made things even tougher, increasing the need for better solutions. One option that is becoming increasingly popular is car leasing. Instead of buying a car outright, leasing the car provides many more benefits than buying the car outright! For those who don’t know yet, we’ve outlined some of the top benefits of car leasing:

Lower monthly payments

One-time monthly payments are always cheaper than accumulating the money to buy the car right away. This could mean taking out a car loan that you will inevitably have to pay additional interest on as well. The fixed monthly payment is often manageable and can be easily planned for. Again, when you lease a car, you only have to pay the difference between the purchase price and the expected value of the car at the end of the lease, which is also called the residual value. This works out much cheaper and gives you the flexibility to afford a more expensive car, even on the same monthly budget. If you compare it to car loan payments, the total cost turns out to be much cheaper.

No to nominal deposit

Leasing a car requires no deposit or requires an extremely small deposit which in turn lowers monthly payments. Although not required, there is no deposit because leasing is an option open to everyone. It not only frees you from the arduous process of putting away the deposit, but also helps you get the car much sooner.

No bad credit problems

Bad credit is often a big hurdle when it comes to getting a loan. But this is not a requirement or a problem when renting a car. Therefore, even people with poor credit scores can easily rent a car.

Don’t worry about depreciation

One of the most expensive parts of motoring is the loss in value of the vehicle over time. This is why people look at salvage value to figure out what it was worth at the time they would try to sell it. When you lease the car, this risk is transferred to the finance company and you no longer have to worry about it. While renting, you know exactly how much you have to pay, and at the end of the lease, you simply return the vehicle.

Regular updates

In-car technology is changing as fast as a person changes clothes. New safety features, increased fuel efficiency, and improvements to car entertainment systems are coming so fast that even in a couple of years, your car can feel outdated. When you buy a car, it implies that you will stay with it for at least a decade or suffer financial losses while upgrading it. However, with leasing, you can get the latest model every two to four years. So unlike buying a car, leasing is the cheapest and easiest way to get the last vehicle for yourself.

Avoiding extra costs

Every time you upgrade to the latest model, it’s about more than impressing your neighbors. You also avoid all the costs that come naturally from driving an older car, which can be as simple as higher fuel costs. Newer cars tend to have fewer problems, and if a problem does arise, it’s usually covered under warranty. Again, since MOTs are not required for vehicles that are on the road less than 3 years, minimum contracts also tend to avoid that expense. Another added advantage is that one does not have to worry about Excise Taxes on Vehicles. Often this is included in the contract and nothing extra is required to be paid.

Recover VAT

When you lease a car for business purposes, you can claim 50% of the VAT deducted from your contract. This can be a huge tax saver as well as a money saving tool.