Car Leasing – The Alternative to Buying A Car
Picture the scene. You are at the traffic lights and the car behind you is a brand new Jaguar. You want one of those. You really, really want one of those. The problem is that you can’t afford to buy one outright and you want to be driving that brand new Alfa Romeo or Land Rover in the next couple of weeks, not wait years to save up for a deposit. What are your options?
Simply put, your options are either to borrow the money or to enter a car leasing agreement. If you borrow the money it will probably be in the form of a hire purchase agreement or a personal loan but the interest on these can be very high and also depending on your credit rating these options may not be available to you. This is why car leasing may be the best option for many people.
A car leasing agreement is usually very straightforward. You enter a into a contract of 2-4 years in length, paying an initial payment of up to 3 months worth of payments and a set monthly amount thereafter without ever actually owning the car. The initial payment you make with car leasing is never as large as the deposit you would need to put down if you bought a car outright. When the lease period expires you can extend the agreement or give back the keys.
The only other thing that is usually required of you is to declare an expected annual mileage. Lower mileages lead to lower monthly payments but if you underestimate the mileage you may be required to pay a penalty so it is important to give an accurate figure.
The advantages of car leasing agreements over buying are numerous. The first one has already been mentioned above – you don’t have to put down a huge deposit. Also the monthly repayments are lower than if you bought a car with a loan or on higher purchase so it is a good way of being able to drive the car you want in the short term.
Car leasing also enables you to change your car frequently as you can upgrade or change the car when the lease period ends. This will appeal to those of us who like to be seen in the latest cars and not out of date ones. In addition, it seems certain people like knowing that at the end of the lease they can give the car back and not have to worry about it anymore. So if you think that you need a new car and a loan or hire purchase isn’t what you want, car leasing is definitely an option you should consider.
If you want to find out more about car leasing, then visit the Car Leasing UK website at www.carleasinguk.com
If you enjoyed this post, make sure you subscribe to my RSS feed!
