Leasing a car for personal use can be a smart move for some motorists but it is important to have a sound knowledge of both the benefits and drawbacks so that you can make an intelligent and informed decision. Read on to discover what these are.
Benefits
The main benefits of leasing a car as opposed to buying are that you get the chance to drive a brand new car every few years which will appeal to those with an interest in cars. Driving a new car has a number of benefits in addition to the allure of being the first driver, including being able to use the latest and best technology. This also means that you do not have to worry about selling the car on which is a huge plus when you factor in depreciation which could see you lose thousands of pounds after just a few years.
Other benefits of leasing over buying outright are that you are always under warranty so you will never have a nasty shock if you encounter any mechanical or electrical issues over the agreement period. Not only this, but you often get lower monthly payments than you would with finance agreements which can make it a more affordable option. Specialists like ZenAuto will be the best place to find the best deals and to browse a wide range of stylish new cars with all the latest and best tech.
Drawbacks
In terms of drawbacks, you will often require a stable and consistent income source to get approval which can make it challenging for self-employed and zero-hours individuals. As a lease, you never technically own the vehicle and often there will be certain restrictions in place, including mileage limits and no customisation.
You will also need to stick the agreed maintenance schedule for the car and GAP insurance is usually required to cover the shortfall between an insurance payout and the amount outstanding in the event of a write off (insurers will only pay the current market value). With a lease, although monthly repayments are often lower you might end up paying more over the long haul depending on a few different factors.
Conclusion
Overall, it will come down to personal preference and what your current situation is. Many motorists find that leasing is the best option and enjoy being able to drive a new car every few years without worrying about depreciation, but for others it is best to buy so that there are no limitations in place and because it is better for their financial situation.
As you can see, there are benefits and drawbacks to leasing a car for personal use over buying. Knowing what these advantages and disadvantages are will hopefully help you to make the best decision for your situation and preference.
