The main benefits of car leasing
The automobile has become an almost essential part of our lifestyle. However, the tough times in today’s economy have made things even more difficult, increasing the need for better solutions. One option that is becoming increasingly popular is car leasing. Rather than buying a car outright, renting the car provides many more benefits than buying the car outright. For those of you who don’t know yet, we outline some of the top benefits of car leasing: –
Lower monthly payments
One-time monthly payments are always cheaper than hoarding the money to buy the car right away. This could mean getting a car loan that will inevitably have additional interest to pay as well. The fixed monthly payment is often manageable and one can easily plan for it. Again, when you rent a car, you only have to pay the difference between the purchase price and the expected value of the car at the end of the lease, which is also called the residual value. This is much cheaper and gives you the flexibility to pay for a more expensive car even on the same monthly budget. When you compare it to car loan payments, the total cost turns out to be much cheaper.
No to nominal deposit
Leasing a car requires no deposit or an extremely small deposit which in turn lowers monthly payments. Although it is not a requirement, car leasing without a deposit is an option open to everyone. It not only frees you from the arduous process of saving the deposit, but it also helps you get the car much sooner.
No bad credit problems
Bad credit is often a big hurdle when trying to get a loan. But this is not a requirement or a problem when renting a car. Therefore, even people with a bad credit score can easily rent a car.
Don’t worry about depreciation
One of the most expensive parts of motorsports is the loss of value of the vehicle over time. This is why people look at residual value to calculate its value at the time they would try to sell it. When you rent the car, this risk is transferred to the finance company and you no longer have to worry about it. While you rent it, you know exactly how much you have to pay and, at the end of the contract, you simply return the vehicle.
Technology in the car is changing as fast as a person changes clothes. New safety features, increased fuel efficiency, and improvements to car entertainment systems are coming so fast that even in a couple of years, your car may feel out of date. When you buy a car, it implies that you are stuck with it for at least a decade or suffer financial losses while upgrading it. However, with leasing, you can get the latest model for yourself every two to four years. Therefore, unlike buying a car, leasing is the cheapest and easiest way to get the latest vehicle for yourself.
Avoiding additional costs
Whenever you upgrade your vehicle to the latest model, it is about more than impressing your neighbors. You also avoid all the costs that come naturally with driving an older car, which can be as simple as higher fuel costs. Newer cars tend to have fewer problems, and if a problem arises, it is generally covered under warranty. Again, since MOTs are not necessary for vehicles that are on the road for less than 3 years, the minimum contracts tend to avoid that expense as well. Another added bonus is that you don’t need to worry about excise taxes on vehicles. This is often included in the contract and you don’t need to pay anything extra.
When you rent a car for a company, you can actually claim 50% of the VAT deducted on your contract. This can be a significant tax savings as well as a money saving instrument.