9 Reasons To Lease Your Next Car
Leasing comes in many forms but the most popular is Contract Hire, also known as an operating lease. It is a usage product, not an ownership product and the lease simply pays for the depreciation on the vehicle plus any interest or additional maintenance. It is ideal for those who want to change their cars every few years and often allows you to take advantage of high discounts from vehicle manufacturers that may not be available in dealerships. Its benefits include fixed cost motoring and when bought in conjunction with a maintenance agreement, true peace of mind and high levels of safety.
Leasing is beneficial for those who wish to have their car for a fixed term & know their costs in advance. At Peter Vardy Leasing, our products are for new vehicles only, so if you want a used vehicle then a purchase product may be better suited. You can tailor the duration of the lease to your individual circumstances, this can be any term between 12-60 months (1-5 years). Without further ado, we have listed 9 reasons that you should consider leasing for your next car.
1. You can get a great deal
Car leasing companies such as Peter Vardy Leasing operate as independent vehicle brokers, continually getting the best real time deals from all the major finance companies and dealerships in the UK. This means they can offer some of the most competitive market rates available, helping drive your monthly costs down.
2. You'll never get bored
New cars are coming out every year with more options, better fuel efficiency, more stylish looks and newer technology. You don’t want to miss out on all that, do you? Leasing is a great way to always have the keys to a newer car in your possession, and you’ll never fall out of love with your new ride.
3. Low monthly payments
With leasing, you only pay for the difference between the purchase price and the residual value (the predicted value of the car at the end of the lease). Unlike a Personal Contract Purchase (PCP), there is no interest included, and unlike buying, you are not paying for the whole thing. This means you could be able to afford to drive a more expensive vehicle on the same monthly budget. In fact, comparing leasing to loan repayments on the same vehicle, your monthly payments could be halved.
4. Experience the latest safety features and technology
Because you are driving new, you benefit from the latest in-car technology manufacturers are introducing. Recent popular additions include things like Autonomous Emergency Braking to help prevent crashes, MirrorLink that syncs your smartphone screen with the car’s and even night vision.
5. Warranty coverage
A short length of a lease means that the car will likely always have some kind of warranty coverage while it’s in your possession. Very few automakers offer a warranty less than 36 months, so you should be covered for a whole host of repairs should anything go wrong while you’re leasing a vehicle.
6. No need to worry about depreciation
Often the costliest part of motoring can be the loss of value your vehicle experiences over time, otherwise known as depreciation. When buying a new car, it makes sense to look at residual values to try and work out how much it might be worth when you come to sell it. Of course, no one can truly predict this figure. There is no way of knowing without possession of a crystal ball! But with leasing, the risk associated with this unknown is taken on by the finance company. As your payments are fixed, you know exactly what you have to pay, and at the end of your contract, you simply return the vehicle. Worrying about long-term reliability is something that car buyers deal with. Leasing a car also means you don’t have to worry about whether the car will age gracefully. Rust, interior wear and tear, and other long-term worries aren’t a problem in a leased car since they happen much later in the car’s life.
7. Avoid MOT hassles
Cars don’t have to have an annual MOT roadworthiness check until their third birthday. By that time, the car will most likely not be your responsibility any more.
8. Tax relief for businesses
Not all businesses can afford to invest in a new car or a fleet. In particular, SMEs may find it difficult to find the resources to fund a new vehicle. However, with car leasing, you can take advantage of a range of tax breaks if you are a business owner, from mileage rebates to low emission savings. With business leasing, you can reclaim up to 100% of the VAT on your contract. VAT claims are also allowed against maintenance costs and any excess mileage incurred during the lease period. Be sure to discuss this with your accountant if you think you may be applicable to this cost saving.
9. You can buy it after
One of the biggest downsides of buying a car is recouping the money when you try to sell it later. But with leasing, you can enjoy a brand-new vehicle of your choice every few years without needing to think about selling it for a good price. Once your contract ends, you can simply return the vehicle without any extra hassle. The vehicle will undergo a standard maintenance check. Afterwards, it is entirely up to you what happens next. Of course, you can always choose another new car and enjoy the benefits of leasing all over again.
In some cases, when your lease is done, you have the option of buying the car you just leased. Buying a similar car from new would cost much more, and the used car market is hit or miss. You already know the history of the car you’ve been leasing, and know how the car works for you. Leasing can act like a long-term test drive before you buy.