You may already have a basic idea of how car leasing works: you rent a car for a specific time, and you pay a set fee per month. Car leasing is a great deal if you don’t want to shell out too much money for a car and if you don’t want to save too hefty a deposit for buying a vehicle. Also, if you want to have a car that’s out of your range budget-wise if you buy it, you can easily lease it, which is less expensive. For instance, if you’ve been dreaming about that BMW saloon for months, instead of buying it, you can lease it instead and enjoy it for the next two years or so. But is leasing the best option for you? Here’s how to know if leasing is the proper choice for your needs.
The benefits of leasing
- It’s often cheaper than buying a vehicle because you don’t have to have a big deposit and the monthly payments are less expensive, especially if you choose a cheaper model.
- If you want a car that’s brand new but you don’t want to spend too much for it, then car leasing is for you. You can drive around in the latest car model without worrying about how much it costs.
- Car leasing can also come with a warranty from the manufacturer, which covers the entire term or deal.
- Often, the breakdown cover and the road tax are also covered, and some providers even offer servicing along with the deal.
- You don’t have to worry about the lost value of the car (its depreciation) once the term is finished, because all you have to do is return the vehicle to the provider.
- If you are the owner of a business and your business is registered for VAT, you can go for car leasing and keep it from your business’ balance sheet, which allows you to deduct the cost of the lease from your business’ profit. You can then reclaim about 50% of the value-added tax.
What you should know
What you should know, though, is that with car leasing, you will not own the vehicle – you are simply the driver of the vehicle for the duration of the agreement. Also, if you opt for car leasing, the mileage may be limited. If you go over the mileage limit, you will be charged additional fees which range from about 3p to as much as 50p for every excess mile. If you damage the vehicle, you may have high fees. If you are picky about the car make and model and would like some add-ons (such as a special shade or hue), you will often have to pay more.
Leasing a car isn’t for everyone, but if you are dreaming of driving a very nice car model but can’t afford to buy it, you can lease it for less money, which is why leasing is often a suitable arrangement for those who want to enjoy driving a high-end vehicle. Also, if you’re worried about car depreciation, then you’re better off leasing a vehicle since you don’t have to think about it at the end of the term.
There are now many car lease providers, even online, such as https://www.genusleasing.com, which offer great deals on an extensive selection of vehicles. Just make sure the provider has a good reputation and can give you the best deal you can afford.
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