Two years of commuting ahead? Time for a lease

The sales of cars may be booming again, is buying one really your best option? Sure, buying a new vehicle can help the wider economy, but when it comes to your personal finances, it isn’t necessarily the best option. And with the prices of train and bus tickets rocketing, the crowds and set schedules, public transport may not be the best option for commuters either?

Personal car leasing is becoming increasingly popular in the UK, yet numerous drivers who could benefit from leasing a car are still taking out car loans or hire purchase to get their vehicle. Russell Bowker from Kudos Vehicle Management added; “Leasing a new or nearly new vehicle typically costs less up front and less during the life of the agreement than buying a used vehicle. I don’t think customers are always aware of this.”

Let’s take a look at some of the main benefits car leasing has to offer:

No Enormous Depreciation Costs

Unlike a house which typically increases in value after purchase, when you drive away in a newly bought car, it’s already losing value. Similarly, if you take out a car loan or car finance agreement to buy a car, you’re simply paying a set amount each month for something that’s losing – not gaining – value. With leasing, you’re only paying to use the vehicle, so there’s no need to worry about the total depreciation costs.

Low Monthly Payments

The payments are a lot less than if you were financing the total cost of the vehicle – that means you can spend or invest your precious pennies elsewhere.

Avoid a Massive Upfront Fee

There’s no enormous initial outlay involved. Instead, only a small deposit is needed, normally totalling to three monthly payments. So no huge deposit to save for!

Fixed Price Motoring

You’ll pay an agreed amount per month for the vehicle. This amount will remain the same throughout your contract.

Road Tax Included

Who really wants the bother of remembering when their road tax runs out? Thankfully, road tax is included in the lease of a car or van – usually for the length of the contract. What’s more, it’s posted to you directly each year.

No Need to Sell Your Vehicle

When you buy a car, as soon as you come to sell it, you’ll have to deal with a trader or dealership and accept a low payment or part exchange. With a lease, you simply use the vehicle for an agreed period of time – usually two or three years. At the end of the agreement, the car is taken back by the leasing company.

Under a Manufacturer’s Guarantee

Your vehicle will be covered under the manufacturer’s warranty, as long as the lease is a certain length and within the warranty mileage. This gives you peace of mind that should something go wrong with the vehicle, you can take it to any of the manufacturer’s own franchised dealerships for repair.

Drive a Brand New Car

One of the biggest advantages of car leasing is you’re able to drive away in a car that may well be out of your price range in terms of purchase price. You also get a brand new car every two to four years which ultimately means you’re safer and will be able to take advantage of fuel economy and performance developments found on newer models.

This article was brought to you by Kudos Vehicle Management.