Car leasing is very big in the United States with 25% of vehicles being owned this way but it is still a fairly unheard-of option in the UK. The car market is booming and with many drivers wanting to replace their vehicle after only a couple of years, leasing seems like a viable option to get a new car for less and pay monthly like many other bills, such as mobile phones.
Leasing can offer hassle-free driving without the concerns of depreciation which affect buyers so much. A personal contract hire allows you to hire new or used vehicles and includes an option for a complete maintenance package so you can enjoy motoring with no worries at all. At the end of the term, you have no hassle of trying to sell the car as you simply hand it back.
For people who like to drive new cars and have the latest models then leasing is a good option and has manageable monthly payments. However, if you like the knowledge of ownership and prefer to keep a car for a long time then purchasing is the answer.
Leasing benefits also include a low or non-existent down payment, monthly payments are lower than they would be on a car loan, warranties generally last the same length of time as the lease and agreements are easier to obtain than loans even if you have bad credit. If you own a business, the leasing of a car can be claimed as a tax deduction.
Some disadvantages that you would need to consider are that there will be added fees when you exchange a vehicle and if you damage one. As with any vehicle you need to take care of it – if you can keep it in a garage with secure doors like these from this garage doors Gloucester based company www.upandoverdoorsltd.co.uk/garage-doors/garage-doors-gloucester/ Also, the depreciation of the vehicle will tend to be reflected in your monthly payments and not left with the dealer.
Benefits of car ownership include having insurance costs decrease over time and any monthly payments will cease after you have paid off the amount for the car. You are free to do what you want to the vehicle in terms of modification, and you don’t need to worry about mileage costs. However, maintenance costs will begin to increase as the car gets older and a car’s value very quickly depreciates. An initial down payment can be substantial and monthly payments will be higher to begin with. Used cars and private sales always come with an element of risk as to the car’s history.