In the United States alone, one in four vehicles on the road are leased; however in the UK customers are realizing the benefits of leasing and moving towards lease contracts. Personal car leasing, it seems, has become a more affordable personal transportation option than purchasing a vehicle outright due to many benefits associated.
Car leasing is a generic term used to describe two separate ways of ‘renting’ a vehicle. The first is personal contract hire (PCH) and the second is personal contract purchase (PCP). Before you start your search for cheap car leasing deals, make sure you understand what both entail. If you’re not convinced car leasing is right for you, however, consider a few important facts that may just change the way you look at leasing.
Depreciation is Not a Concern
Consider this: within the first 12 months of ownership a new car depreciates in value from 15-20%. Some cars take harder hits, depending on the make and model, and may even depreciate by as much as 50%. Unlike purchasing property, vehicles don’t incur value with time. When you lease, this isn’t a concern. Personal car leasing gives you all the perks of driving a brand new vehicle without any depreciation worries. After three years, trade in your model for a new car without having to resell your current vehicle. It’s convenient and better for your finances.
Low Monthly Payments
The best cheap car leasing deals come with low monthly payments. Depending on your credit score, your monthly payments may be higher than you can afford, and they don’t change with your financial situation. Because your monthly payments aren’t based on a financed loan, they don’t have interest fees on top of the base rate.
Improved Car Model Selection
New cars are one of the greatest benefits of car leasing. Instead of driving the same vehicle for at least 60 months, as you would with a traditional car loan, you may trade in your vehicle for a new model at the end of your lease without additional fees. Whether you’re looking for a brand new BMW or an SUV, you can lease the vehicle you want and stay within budget.
In most personal car leasing deals, you may pay as little as three monthly payments upfront and then move forward with the repayment process. This keeps upfront costs low for you. In the end, car leasing is a personal experience. Whether you choose to buy or lease, however, keep these benefits in mind.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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