Drive your dream car for less

What does driving your dream car for less mean? Is it that feel-good factor you get from driving it around? Or is the added peace of mind knowing that you are driving a safe, reliable car with the latest technology? Car leasing does give many benefits, so let’s look at the REAL perks.

 

What is leasing?

In short, car leasing is the convenient, affordable and simple way to drive. It lets you drive a brand-new car for fixed monthly rentals. It can make driving your perfect car almost as easy as getting your next mobile phone. Now you wouldn’t want to keep your mobile for more than 3 years would you? It’s natural to want an upgrade when your contract comes to an end, right? Ideally you would want to replace it for a smarter, more technically-advanced phone.

 

What are benefits?

Why should it be any different with your car? If you can upgrade your phone every few years, then surely it makes sense to upgrade your car every few years too? THESE are the real benefits of leasing a car:

 

-  Free up capital – get a new car without the up-front costs, freeing up money for you to use elsewhere

​

-  Because most of the leasing costs are mainly based on depreciation, you can typically drive more premium upmarket cars that depreciate less as they represent better value

​

-  Gives you the chance to drive your dream car through a sensible payment plan

​

-  Low initial rentals, typically starting equivalent to 3 monthly rentals (although the more you put down, the lower your monthly rentals will be)

​

-  Choice of contract period from 24 to 60 months

​

-  Hassle-free, fixed-cost motoring

​

-  Reduced risk – the risk of car depreciation is eliminated. In most cases, at the end of the contract the car is simply handed back without you having to worry about how much it might be worth

​

-  Less administration – the finance company deals with all the buying and selling issues

​

-  Mileage limits are pooled – even though you might select 10,000 miles per year, with a 3-year lease you actually have 30,000 to use across the term

​

The smart way to pay

The biggest benefit of leasing is that you usually get far more for your money, because you’re not purchasing the whole car, you’re only paying for the depreciation.

 

At the end of the contract term, you hand the car back – having spent a fraction of the amount of money an outright purchase would have cost you – and choose your next brand-new car to drive.

 

Why is it smarter?

Let's put this into figures – this is where the true pros and cons become clear. And while this may not be the right choice for everyone, the figures make it a very compelling choice.

 

Take a look at this example: if you lease a £20,000 car for 3 years, and its predicted residual value at the end of those 3 years is £12,000, then you will only make lease payments on the £8,000 difference.

 

If you had decided to buy the car outright, you'd be making payments on the entire £20,000 or paying for the whole lump up-front.

 

With leasing, that never happens. You're making the smart choice from the outset, and driving a brand-new car to boot!