Whether you decide to buy a car outright, or you decide to pay monthly on a lease, it’s important to understand the pros and cons, and what would be most beneficial to you in your individual situation. In recent years, leasing a car has become an increasingly popular alternative to buying a car. French & German Car Services highlight the pros and cons of all car leasing, to help you make an informed decision on what is best for you.
Like anything, there are always advantages and disadvantages, however, leasing your car is dependent on your situation. From the outside, leasing a new car may seem more appealing than buying a car, with the variety of different finance options and multiple options at the end of the leasing, it has become an easy and well-liked option by many who wish to have a new car every few years.
-Paying for your car on lease allows you to have a brand-new car to drive in for what is usually a lower monthly cost than other finance offers. Leasing is similar to renting, and when you are essentially renting a car you do not have to worry about depreciation of your cars value, as you have the option to be able to change it to a newer one by the end of the contract is up or simply hand it back. The majority of lease deals tend to be from 2-4 years long with no pressure to buy the car at the end.
-With the advantage of driving around in a new car, there are less likely to be any issues with the car during its most durable and trouble-free years. New cars will usually be under the manufacturer’s warranty and may include other free scheduled maintenances.
-Once your leasing contract is over, you simply hand your car back to your finance company and discuss your next options which could be anything from handing it back to the dealer for good or trading it in at no additional cost and getting a newer car. This means you do not have to deal with the hassle of selling or trading the car yourself.
-The monthly costs of leasing a car tend to be less expensive than other finance offers such as PCP, this is because there isn’t the option to buy the car at the end of the deal. This means that there shouldn’t be any additional costs by the end of your contract, allowing you to drive around in a newer car for less money than you may expect.
As desirable as all car leasing may appear at first, there are some disadvantages to this. Just like renting a house, renting a car does not make it yours, and the payments are lower for a reason. One of the top benefits of other finance plans is having the option to buy the car at the end of the contract, however, leasing a car does not give you this opportunity.
If you decide to lease a car, you will need to take care of it and ensure that any damages are repaired because you will be charged. The leasing company will expect you to keep the car in good condition, so you can expect to have to pay for the damage if you return it in an unacceptable state to sell on.
The terms and conditions of leasing a car can be restrictive, in comparison to having bought your own car, you’re tied into a contract and you will have to pay an excessive amount of money if you want to return the car before your contract is over. The lending company will want to make sure you can physically pay back the monthly repayments, so you may be subjected to a credit-score history to examine if you are eligible to go ahead with the plan- and there may be a possibility that you will be rejected.
Leasing a car could be the perfect solution for you to drive a new car without the hassle of having to trade and sell after the contract is finished. However, if you do not want years and years of monthly repayments, and do not have the need to have a brand new car every few years, buying a car may be more suitable for you. Assessing your individual situation and weighing up the pros and cons will help to make your final choice.
If you have any further questions about all car leasing or you have any questions regarding the services we offer, please contact us by filling out an online enquiry form or give us a call on 0207 609 1502.