Why Leasing a Car is better than Buying
Lease or buy a car? This is probably the hardest choice, especially for the working class. While both options are good, there are reasons why it’s best to lease a car rather than buying. Today, over 70% of cars on UK roads are leased. This is an indication that most UK residents prefer leasing than buying. However, there is lots of untrue information about car leasing deals. First, you need to understand how car leasing works.
What exactly is car leasing?
Car leasing works like house renting. This industry is run by car brokers who offer different types of car to individual lessees. The lessee gains possession of the car for a period of time depending on the lease terms. During the term of the lease, the lessee is required to pay monthly instalments as compensation for the use and depreciation of the car.
Looking at how car leasing works, there are lots of benefits associated with it. Here are some of the advantages.
Lower monthly payments
Car leasing allows you to drive a car you may never afford to buy. Lease monthly payments are 30%-60% lower than when buying. Moreover, you can find a car to lease within your budget. The first step to leasing a car is to consider your monthly salary. The next step is to calculate what you can afford to pay as the monthly instalment for a car lease. You can visit www.genusleasing.com to compare the cost of different types of cars.
No major repair or maintenance costs
A car is covered by a manufacturer’s warranty for a certain period of time. In case of a major repair within this period, it is the responsibility of the manufacturer to repair it. One of the other advantages is that the leasing company is, in most cases, responsible for the servicing of the car.
No struggle with used cars
Why struggle with an old car when you can leave it and pick a new one through car leasing. After the term of the lease expires, you may choose to renew the contract or pick a new car by signing a different contract. This is a great advantage as it allows you to possess the latest cars on the market.
The main reason most people in the UK don’t own a car is the high upfront cost when buying. Usually, buying a new car requires a 20% upfront payment, which is way too high. This is much more expensive compared to leasing; you just need a small monthly instalment to pick a decent car.
These are just some of the reasons why you should lease a car. There are several car brokers leasing cars in the UK. However, you need to compare them to find the best broker. It is also advisable that you negotiate the best car lease deal based on your financial circumstances.