Deciding between leasing a car or buying your own vehicle can be difficult and downright confusing, but leasing brings a huge host of added benefits – so in most cases, it’s a no-brainer.
Not only will you be able to drive brand new cars that are likely safer and more economical than older, second hand models, you won’t have to worry about the depreciation value, and you’ll save on maintenance costs!
Leasing a car means that you’re making monthly payments for as long as the lease is agreed, usually around three years. You never own the car, meaning you never own the depreciation – we’ll get onto that later. Once the lease is over you simply decide which new model you want and start again.
Read our comprehensive guide to leasing below:
1. No more second-hand
One of the main advantages of leasing a car is being able to get newer models which may be outside of your price range if you were looking at buying it outright.
And surprisingly, having a newer model could actually help save you money in the long-run. This is because newer cars are more economical when it comes to fuel and can save on maintenance costs due to newer parts being less likely to develop faults.
When you lease with us, you’ll get a brand-new car, which mean you’ll be the first named driver.
2. Bye-bye road tax
We cover your road tax fees as part of your monthly payment, which means you won’t need to worry about applying and paying the tax. Over the length of a multi-year lease, this could save you a lot of money!
3. Depreciation worries – gone
Everyone knows that as soon as you drive a new car off the forecourt it instantly drops in value. And this is true throughout the time you own the car – it’s never really going to be worth as much as you originally paid.
A new car typically loses 50-60 per cent of its value after three years. By leasing the car, you don’t own the depreciation which means you don’t have to worry about how much money you’re losing each year.
4. Save money by reclaiming VAT (if applicable!)
Business owners or self-employed motorists can save hundreds of pounds over the whole length of an agreement due to being able to reclaim at least 50% of VAT whilst leasing a car.
This means business owners can significantly reduce the overall cost of their leasing deal.
5. No damage to credit rating
Many believe leasing a vehicle might affect their credit rating when in fact, it could have the opposite effect. Making repayments on time shows lenders you can be considered a low credit risk, which could improve your rating in the long run.
Be warned though, late payments could have the opposite effect and make you appear as a high credit risk.