Car leasing is slowly growing in popularity because of the economic pressures that is being put on people’s individual and business budgets. There are a variety of reasons to consider car leasing and with car prices continuing to rise, many more are looking at better ways of affording a car. Here are just a few benefits for why car leasing is a good option.
Usually after purchasing a car outright or even on a finance option, the car loses a portion of its value as soon as you drive it out of the dealership. The more miles you place on the car and the longer you use it for, the more value is lost on the car.
With car leasing, the depreciation issue becomes irrelevant because with a leasing agreement, instead of owning the car or buying it at the end of the agreement, you simply hand it back to the lender. This means that you do not have to worry about the hassle of selling the car on or even having the money to purchase it car at the end.
On average, a car after three years of ownership can have lost 50-60% off its original value. In just three years.
Month on month
If you sign up for a car finance option, you have to pay a monthly amount and then you will likely have to pay a lump sum at the end of the agreement as well. With a car leasing agreement, the monthly costs are far cheaper.
This means that you can budget easier than on other car purchasing options, meaning you have money to spare to spend on other things, or save money. There is also the possibility that you can stretch your budget to a better car if that is what interests you.
On average, a typical car leasing payment monthly is 30-60% cheaper than purchasing a car on car finance options. If you were looking to lower your monthly budget, then replacing your current car or getting a new car on a car leasing agreement, would go far in helping with that.
When purchasing a new car, you often have to put down a deposit on a car to start the monthly payments. With car leasing, there are agreements, where deposits are not necessary. No deposit leasing agreements are extremely popular amongst people with good and poor credit, because it allows people to get a vehicle, based completely off whether or not they can pay the monthly payments.
If you are struggling to get a car, because you require a deposit, then you should very much consider a car leasing deal that does not require a deposit, however this is likely to increase your monthly payments, so as long as you can afford those payments, leasing might be a great way for you to go.
Luxury Brands do best
This may not seem like a benefit, but it says a lot. The top three car brands that do best from car leasing deals are BMW, Audi and Mercedes. This implies that because car leasing doesn’t require a deposit and the monthly costs are lower, that these benefit the driver because they are able to afford more luxury branded cars.
Our following infographic demonstrates exactly how good car leasing is and what benefits it offers.