If you're new to leasing & want to learn about the process, Leasing Options' comprehensive guide has everything you need to know about first-time car leasing
12 Top Benefits of Car Leasing
Car leasing is a great option if you want to drive the latest models. This affordable long-term rental agreement provides an alternative to car finance, such as PCP or buying outright.
What's more, there are lots of advantages of car leasing that make this option worthwhile.
Is leasing a car a good idea?
Personal car leasing provides an affordable way to drive a new car without the ties of owning it outright. This option also gives drivers the ability to upgrade models more regularly and take advantage of the latest improvements in technology and reliability.
In addition, there are several other benefits drivers enjoy with car leasing – making it a great idea for drivers looking for affordable and flexible motoring solutions. Below, we delve into the main factors to help you make the best choice.
1. Low monthly payments
With leasing, you only pay for the difference between the purchase price and the residual value (the predicted value of the car at the end of the lease). Unlike a Personal Contract Purchase (PCP), there is no interest included, and unlike buying, you are not paying for the whole thing.
This means you could be able to afford to drive a more expensive vehicle on the same monthly budget. In fact, comparing leasing to loan repayments on the same vehicle, your monthly payments could be halved.
2. Pay a lower deposit
Many PCP deals and similar finance products require a 10-20% deposit, making the initial payment particularly painful for your wallet. On the other hand, with a lease, you can drive away a brand-new vehicle from as little as one monthly rental payment as your initial charge.
This makes leasing perfect for a range of circumstances. For example, a lower deposit is handy if you don’t have a large lump sum to put down for a new vehicle. There's also the option of paying a higher initial rental and lowering the cost of monthly instalments – the choice is yours!
In Stock Car Lease Deals Available Now
Leasing Options understands waiting for a new car isn't always possible. Maybe your lease is ending or your car is old, or you like new models. Regardless, we offer in-stock car leases to meet your needs, which could be delivery within as little week.View in stock deals
3. Drive a brand-new car
Driving the latest car is a luxury many motorists can't afford because it is not financially viable. But with leasing, you can get a brand-new vehicle every few years and access regular upgrades.
Technology in cars is improving more quickly now than ever before. There are new safety features, greater fuel efficiencies and improvements to in-car entertainment systems being introduced all the time, meaning in just a couple of years, your car can feel dated.
Buying a car can typically mean driving it for a decade or more. However, leasing gives you the opportunity to have the newest model every two to four years, complete with your choice of extras like additional tech, driver aids and your pick of paint colours.
If you're the sort of person who gets bored with their car easily, leasing can work out as the easiest and cheapest way to change vehicles often.
4. Road tax is included
Car leasing agreements include road tax in your monthly rental, so there's no need to worry about taxing it during your lease period. In addition, the finance company is the registered owner of the vehicle. This means they register the car, deal with the paperwork, and pay any necessary fees.
5. Warranties and breakdown cover come as standard
Every lease vehicle is covered by a manufacturer's warranty. The length of the warranty varies between car brands, but you can expect to be covered for around five to seven years or up to 100,000 miles, whichever is sooner. Of course, lease periods are typically two to four years. So you won't reach these cut-offs and subsequently don't need to worry about warranty coverage ending during the term.
In addition, breakdown cover is also included in your car lease. The entire contract is usually covered, and you'll be given your provider's contact details should you ever need these services on the road.
6. You can include maintenance
Lease cars are less likely to go wrong as they're brand-new vehicles. However, they still require regular servicing and maintenance per the manufacturer's recommendations.
To minimise the hassle of arranging this, there's the option to add a maintenance package to your car lease. This handy addition covers the vehicle's servicing and repair requirements during the lease – with the cost rolled into your monthly instalments.
MOTs are also required on vehicles after three years. So, if your lease is longer than three years, MOTs are also covered in this plan.
If you want to know more about adding a maintenance package, check out our car maintenance guide.
7. You can include insurance
Every car requires insurance, and that is no different from leasing. There&Apos;s the option to arrange your own insurance - don&Apos;t forget it has to be a fully comprehensive policy. Or with our Fuel & Go package, you&Apos;ll get car leasing with insurance included.
Our insured car leasing Fuel & Go package is completely comprehensive, including coverage for the following:
- Third-party liability
- Your family or spouse
- Shortfall protection
Find out all about insurance in our guide to insurance and leasing.
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8. Leasing is quick and simple
Getting yourself behind the wheel of your next vehicle shouldn’t be stressful. That is why we have a simple leasing process, which makes it easy for you to start enjoying your new car:
- Choose your car
- Get a quote
- Apply for finance
- Sign your contract
- Decide on a delivery date
Our simple leasing process can help you secure the perfect car in as little as a few weeks. Our in-stock lease deals also offer a wide range of options, and vehicles are ready to go and awaiting delivery as soon as you've completed the paperwork. If you want to know more about the process, check out our guide to car leasing.
9. The cost is fixed
Getting a new car is likely to be one of the biggest investments of your life, which is why being able to make affordable, fixed payments is one of the best benefits of leasing a car.
With a lease, everything you pay is agreed upfront. There are no grey areas on annual mileage or equity. Other finance products, such as PCP, include the promise of equity at the end of your contract, which may or may not materialise.
We will tell you exactly how much you need to pay each month at the earliest opportunity. Your monthly costs will not change throughout the duration of your contract. This should simplify budgeting, as you can manage your outgoings from the start.
10. You don't need to worry about depreciation
The costliest part of motoring can be the loss of value your vehicle experiences over time, otherwise known as depreciation. Cars usually drop in value between 15% and 35% in the first year. This goes up to 50% or more over three years (depending on model and make).
When buying a new car, it makes sense to look at residual values to determine how much it might be worth when you sell it. Of course, no one can truly predict this figure.
But with leasing, the risk associated with this unknown is taken on by the finance company. As your payments are fixed, you know exactly what you have to pay, and at the end of your contract, you simply return the vehicle.
11. We'll deliver to your door
Whatever vehicle you choose, we arrange the delivery free of charge to most UK addresses (some exclusions apply). In most cases, vehicle delivery can be arranged to suit your schedule. So speak with your account manager about a suitable time and date that works best for you.
Returning your car is also simple, as it is collected at a convenient time – leaving you to select your next lease vehicle. For more information on what happens at the end of your lease, check out our end-of-lease guide.
12. No long-term commitments
Leasing terms typically last between two and four years, so you can enjoy a brand-new vehicle without costly repair bills or long-term maintenance charges.
With no long-term commitment, you also have the flexibility to upgrade your car more frequently. Plus, there are no hassles of having to sell it when you want to switch.
Considerations of car leasing
Before you take out a lease contract, it is also important to consider that:
- If you settle the contract early, you will be required to pay a termination fee
- If you exceed your agreed annual mileage allowance, you will be required to pay an excess mileage fee
- At the end of your contract, you will be required to pay for any damage to the vehicle, with the exception of fair wear and tear
With a plethora of different options available, like PCP, PCH, bank loans, and hire purchase, trying to find the best way to pay for your vehicle can be confusing. The general consensus is that buying is always better in the long run, but in some cases, it can make more sense to lease things.
Should I lease a car?
The decision of whether to lease a car comes down to personal preference, budget and circumstances. Leasing has many benefits, including more flexibility, affordable monthly options and driving the latest models without a long-term commitment. Of course, you also have to consider aspects such as mileage allowance and the ability to obtain credit to take advantage of leasing.
There are several things to consider when looking at car leasing. But for many, it is a flexible way to drive the latest models for an affordable monthly cost. Speak to our expert team for more information on car leasing and how it can benefit you.