The Benefits of Car Leasing [Top 13]
by Sarah Portet | Reading Time 2.5 mins
Leasing a car can be a great option for people that cannot afford to purchase a vehicle outright or don’t want to make a big financial commitment. Leasing gives a great deal of flexibility in terms of the vehicle you drive and your motoring costs. We take a look at a number of advantages that can make leasing a very attractive option.
Drive a Brand New Car
Probably the most attractive benefit of leasing is that it enables you to drive a brand new car that you may not be able to afford if you had to purchase it. Leasing gives you the opportunity to upgrade your car every 2 or 3 years so you can always driving the latest make and model of car.
Flexibility to Suit You
Leasing offers flexibility on the vehicle you drive. You are not stuck with the same vehicle for several years just because you purchased it and have to stick with it to make your investment worthwhile. The car you need today might not suit your needs in a couple of years, when perhaps you may need to upgrade to a larger family car to suit your growing family. Leasing gives you the option to change your vehicle frequently.
Get More for Your Money
When using your own money to buy a car it will ultimately limit what vehicle you can purchase. You will usually have to compromise on the make, model, and engine size to meet your budget, and so you rarely end up with the car you really want.
Leasing splits the cost of motoring into more manageable monthly payments making it more affordable and increasing the range of cars that fall within your budget.
If you’re planning on using your car for business use or are considering taking a cash allowance instead of a company car, leasing can be a tax efficient option. The monthly contract hire payments made during the year can normally be fully offset against the business’s taxable profits for corporation tax purposes.
With leasing you have the peace of mind that comes with your vehicle’s manufacturer’s warranty.
The length of the lease agreement is usually shorter than the manufacturer’s warranty so you should be covered for the entirety of the lease against any major mechanical and electrical faults.
The minimum length you should expect from a manufacturer’s warranty is three years or 60,000 miles (whichever comes first). Hyundai, offer a five-year warranty with unlimited mileage, and Kia offer a massive seven-year or 100,000-mile warranty.
If you love your music, and in car entertainment then leasing gives you a way to always have the latest in-car gadgets such as bigger and better touch-screens with improved features. Car manufacturers do seem to focus on improving technology in their cars with each new redesign or relaunch as they know it’s what people want. So leasing is great for people who like to have the latest of everything.
Latest Safety Features
Updating your car to the latest model by leasing ensures you and your passengers are driving in the knowledge that you are as safe as can be. Safety features have come on in leaps and bounds from automatic emergency braking (AEB) to lane departure warning (LDW) becoming standard in new vehicles. Emerging safety features such as driver facial recognition which monitors the driver and gives an alert if it appears they are not paying attention will become standard within a few years. Leasing every few years guarantees you are driving the safest cars around.
Don’t Tie Up Your Capital
Whether you take out a personal car lease or a business lease, leasing enables you to free up your capital by not buying a car outright. Leasing gives you financial flexibility enabling you to enter into a relatively short-term agreement that gives you the vehicle you need without significant financial commitment.
Budget Your Motoring Costs Easily
Leasing puts an end to the dilemma of ‘do I take out a loan or empty my savings?’ Before any contract has been agreed, you know exactly what you’ll be paying each month and what initial payment you’ll put down.
You know exactly what your monthly motoring expenses will be which can help you stay on top of your finances.
Minimise Expensive Surprise Repair Bills
A new car is much less likely to break down than one that’s clocked up many miles and years. Driving a new lease car can give you confidence that you won’t have any sudden expensive repair bills to budget for.
No Depreciation to Worry About
Because you’re essentially renting the car, you don’t have to worry about depreciation. Many cars lose up to 45% of their value in the first 2 years which isn’t your concern. At the end of the lease just hand the car back. For a business, contract hire removes most of the risk of operating company cars. The major risk of disposal of the vehicles at the end of contract and fluctuations in used car values is borne by the leasing company.
Road Tax Included
All car lease deals include road tax. This is because the Leasing Company or Finance Company remain the registered owner and so have the responsibility of the road tax; saving you money.
New cars don’t need a MOT until they are 3 year’s old. So if your lease deal is less than 3 years you don’t have to concern yourself with putting the car through an annual MOT and picking up the associated costs.