The five key advantages of leasing your next car

If you are wondering how your neighbours manage to afford a new car every two or three years, there is a good chance they have discovered the advantages of leasing rather than buying. Car leasing in Leicester and across the country is increasingly popular. If you are new to the concept, here are some of the main benefits.

car leasing makes sense

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1 The basics

Rather than buying a car outright, leasing means you pay only for the depreciation over the term of the lease. You then hand the car back and start a new contract or simply walk away.

2 No maintenance worries

Most cars these days have a warranty of at least three years, which means it will be covered for the length of the lease and you will have no nasty surprises due to mechanical failure. The car will still need regular servicing, of course, but it is usually possible to get this included in the lease and have fixed costs for the duration. You can have the car serviced at a local dealership in the same way as any other vehicle.

3 Better may be cheaper

Depreciation is the biggest cost when buying a car and it is easy to see how a car that depreciates less may not cost as much to lease as one that loses value fast. By leasing from a company such as you may be able to afford a better car than if you were buying.

4 Mileage limits

There will usually be a limit on the mileage you can cover over the term of the contract. If you exceed the agreed mileage, you will pay a penalty at the end of the lease; therefore, it is important to work out what sort of distance you are likely to travel and how any changes in your circumstances may affect this.

5 Tax and insurance

Road tax is usually included in the cost of the lease ‒ another expense you don’t have to worry about. You will still have to arrange your own insurance, although insuring a leased car should not cost any more than if you owned it. You might also want to consider gap insurance to pay the difference between the insurance value of the car and the lease value in the event of a write-off.

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