Unless you’re already a millionaire or have very expensive hobbies, aside from purchasing property buying a car is likely to be the biggest expense you ever have to make. Much like with property, most people aim to own their own home and car for good rather than rent.
This isn’t always the cheapest method of running a vehicle though. If you already own your own car then selling it and switching to lease instead can free up a significant amount of cash. Or if you’re yet to buy then consider leasing a top-quality car first as a financially sound option.
Improved Cash Flow
Lower monthly payments are included for leasing a car against taking out a loan to buy one. Depending on how long you intend to keep the same car if you’ve bought one outright too, the lease payments can work out cheaper over time (especially considering depreciation).
For those who can budget better every month or need more access to cash each month then leasing is the best choice. Many dealers are up for negotiating too so you can secure a cheaper down payment and thus pay less on sales tax.
Reliable New Vehicle
The main advantage for many opting to lease vehicles is that it provides access to some of the best new cars otherwise out of their price range. As new models these are usually far more reliable to run, requiring less expenditure on maintenance and servicing.
The majority of new cars on the market these days also feature far more efficient fuel usage, which can be the biggest expense besides initial purchase. When the lease is up you can also upgrade to a newer model with even better eco-credentials or even switch to an electric or hybrid model to really cut back on fuel costs.
Substantial Cover
Many leasing deals incorporate maintenance costs into their policies which means you never have to arrange or pay for servicing and work on your vehicle. This means you’ll never have to pay anything else on top besides for fuel.
In the long run, this can work out a lot cheaper as owning an older vehicle is more likely to require expensive repairs and find faults during its annual MOT. Even if your leased car is hit with some big damage your lasing rate should stay the same. Consider making the switch to reduce your monthly costs and improve the vehicle you drive.
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