Why Choose Car Leasing?

Is car leasing the best car purchasing option for you? Find out why

There are a number of different ways to purchase your new car; hire purchase, PCH, PCP, bank loans - it can all be a little confusing at times. However, here's a bit of information which will hopefully help explain why leasing is one of, if not the best car purchasing option for you - Vehicle leasing is becoming more and more popular in the UK, and for some convincing reasons:

Latest & Greatest

With cars improving year on year, technology is ever progressing making driving more and more enjoyable. As such, the technology which a few years ago was only featured in high end models soon becomes the norm for less expensive cars. The vehicle you get can seem like a spaceship, kitted out with every gadget you could possibly want, guaranteeing excellent fuel efficiency and limitless sources of car entertainment. However, after a few years it can feel dated. Leasing allows you to update your wheels much more regularly to a car that is more fit to the modern car market, as opposed to driving the same car for a decade like you would do for a buying the car outright.

Monthly Payments

The advantage of leasing when it comes to pricing is the lower monthly costs. That is due to the fact that you only pay the difference between the purchase price and the predicted value of the car at the end of the lease (residual value). Essentially, this allows you to drive a more expensive vehicle on the same monthly budget as you would if you bought the vehicle out right. You'll be amazed at the savings you can make when comparing the price of the car you want between leasing and direct purchase.

Price Budgeting

Finance schemes such as PCP can feature the opportunity to gain equity at the termination of your contract. However, this may or may not be guaranteed. With leasing, your budgeting is made much easier as the payments are set in stone and agreed up front. Annual mileage and equity agreements does not change. That way, you will know exactly what your vehicle will be costing you, so you can handle your money better.

Additional Maintenance Costs

It's no secret that older cars are much more prone to breaking down, demanding a trip to the garage which can set you back quite a bit. And, those issues with your car can be recurring meaning even more money is spent. Having a brand new vehicle with a leasing contract means there is a much less likely chance that it will experience any problems, and the vehicle will also be covered by warranty. Another factor to consider is that vehicles will need MOT's, but they're not a necessity until it has been on the road for three years. Therefore, leasing contracts usually avoid this additional cost.

Depreciation Deficit

Depreciation of the value of a car is one of the major factors which can burn a hole in your pocket; as soon as you drive a car out of the shop that value decreases. That's why it's a good idea to consider the residual value of the car you want before you purchase it so you know how much it will be worth down the line. The problem is that no one can very accurately predict this figure. This issue isn't a problem when it comes to leasing as you return the vehicle back to the finance company and you can renew with a brand new vehicle.

Deposits & Upfront Payments

Another advantage of leasing is not having to fork out as many upfront payments and having lower deposits. When leasing, you can drive away with your brand new vehicle with just one monthly payment. Additionally, after you have paid your processing payment there are no charges until your initial payment and you are driving your new car. On the other hand, PCP deals require a 10-20% deposit. So, if you want to avoid that big initial payment and deposit, leasing is a great option.

Does it sounds like car leasing is the best car purchasing option for you? If so, there's no better place to purchase your next car from than XLCR Vehicle Management - We guarantee the best car deals on the market - if you find a better price, we'll match it!