Are you considering leasing your next car? Great – you’re in the right place to find out the advantages of leasing a car!
If this is your first time leasing, you will no doubt be full of questions around how it works. This article will be a great starting point as we delve into the benefits you can experience from leasing, while also outlining key considerations before making a decision.
Table of Contents
- Why leasing a car is smart
- What are the advantages of leasing a car?
- Affordable costs
- Luxury of driving a new car
- A simpler- stress-free process
- A more flexible approach
- You aren't affected by depreciation
- What should you consider before leasing a car?
- Terms and conditions of the lease
- Total costs
- Your credit score
- Maintenance and warranty coverage
- Insurance
- Why lease a car with Motorfinity?
Read on to discover:
- Why leasing a car is smart
- The advantages of leasing a car
- What you should consider prior to leasing
- Why you should lease a car with Motorfinity
Why leasing a car is smart
Leasing a car is a smart approach for someone who wants to drive a new car without having to pay a premium.
Although you don’t own a car like you would if you were to purchase, leasing instead provides a flexible approach whereby you pay an affordable monthly fee over a set period outlined by a contract. Once this contract expires, you then have the simple choice of handing the car back or beginning a new lease agreement where you can drive away in a brand-new car!
This essentially takes the worry of depreciation away, as you will only pay for the vehicle’s expected loss in value during your lease. And by the end, there is no need to concern yourself getting a good price for the car as you don’t need to sell.
In summary, leasing is a viable alternative to purchasing a car.
Find out more about the advantages of leasing a car over buyingWhat are the advantages of leasing a car?
If you’re wondering ‘why lease a car?’, this option provides a number of tangible benefits to both your bank balance and quality of life.
Read on to check out our top 5 advantages of leasing a car!
Advantage #1: Affordable costs
Leasing can provide an affordable option when in the market for a new car. There are several factors to this, including:
- Lower monthly payments vs loan payments: Lease payments are typically lower than loan payments for buying a similar vehicle - making it more affordable to drive a new car!
- Lower down payment: Your up-front costs via a down payment can also be low if you choose, reducing your initial cash outlay. However, you should be aware that the lower this payment, the more expensive your fixed-rate monthly payments are.
- Predictable payments: Monthly lease payments are fixed, making them predictable and easy to budget for.
In addition, many agreements can include road tax and maintenance, leading to all-in-one cost management – so be sure to look out for this!
Find out what type of lease could be suitable for youAdvantage #2: Luxury of driving a new car
Leasing is a great option for those who want to enjoy the luxury of driving a new car. By opting to lease, this is one of the main benefits you can enjoy as it allows you to:
- Regularly upgrade to a new car every few years
- Access the latest car models, technology, and most importantly, safety features
- Enjoy extended warranty coverage associated with new cars – which can be a significant saving on repair costs
- Potentially avoid paying for an MOT as new cars are exempt from their first one for three years
Advantage #3: A simpler, stress-free process
Leasing a car is a generally simple process, with your leasing company doing the majority of the work. From your perspective, all you need to do is:
- Choose your car
- Negotiate contract length and mileage allowance
- Pay initial down payment
- Make fixed monthly payments
- Either complete your lease or begin another lease with a new car
Also, with the likes of road tax, breakdown cover, and maintenance and servicing options potentially included, your costs are simple to break down and predictable to budget for.
Find out more about the process around car leasingAdvantage #4: A more flexible approach
Leasing is a suitable option for those who are looking to avoid long-term ownership or the potential stress of selling a used car. Instead, it provides a flexible approach that allows you to drive a brand-new car for the duration of 2-5 years. By the end of this period, you have up to three simple choices:
- Return the car and lease a new one
- Return the car and walk away
- Potentially buy the car at its residual value
Advantage #5: You aren’t affected by depreciation
A benefit of leasing over purchasing a car is that you are not responsible for the vehicle’s depreciating value. This is a major consideration when purchasing a car as you will want to get a good price for when you look to eventually sell.
With leasing, the dealer bears the risk of depreciation, not you. In other words, you don’t have to worry about the car’s depreciation value – simply enjoy the luxuries of driving a new car!
Find out more about the pros and cons of leasing and buying a carWhat should you consider before leasing a car?
Although there are undoubted benefits to car leasing, you should still take certain factors into consideration before making the commitment.
We outline the key considerations below:
Terms and conditions of the lease
Above all, you should be fully aware of the conditions within your lease contract. Not being clear on these details can lead to additional costs that could prove expensive. And often, they can be easily avoided!
Essential details to be aware of include:
- Length of the lease: This is typically between 2-5 years – with shorter leases costing more per month, but longer ones having potentially higher maintenance risks.
- Mileage limit: Standard leases offer between 10,000-15,000 miles per year – with it costing anywhere between 5p-30p per mile if you exceed your mileage allowance.
- Excess wear costs: If you hand the car back with excessive wear such as dents, scratches or stains, then you will be charged an additional fee.
- Early termination charges: Ending your lease early can lead to an expensive fee as you will be required to pay the remaining balance with additional penalty fees.
Top tip: Be realistic about your annual mileage
One of the easiest ways to get stung with additional fees is by exceeding your mileage allowance – so be realistic about how often you drive. Do you use your car daily? Do you take long commutes to work? Ask questions such as this to determine a lease agreement that is suited to your lifestyle. Better to be safe than sorry!
Total costs
Remember, your monthly payments are one part of the overall cost where leasing is concerned. During the negotiation stage of your leasing contract, you should ask about other costs, including:
- Down payment
- Acquisition fee
- Disposition fee (for returning the car)
- Costs of exceeding mileage allowance
- Excess wear and tear costs
- Optional extras such as paint, trim and wheels
Top tip: Calculate the total costs before agreeing to a lease
Once you are clear about each cost, total them up. If this total fits within your budget, you will then be able to make an informed decision to go ahead with the lease.
Your credit score
In the world of leasing, a good credit score can open up a lot of doors for you.
Firstly, leasing requires a good credit score to begin with – often higher than financing! In addition, it’s crucial to know that a higher credit score can potentially qualify you for lower payments and better deals. So, if you are somebody with a high credit score, leasing could be a viable option for you!
Top tip: Conduct a credit check prior to approaching a leasing company
There are many online platforms that you can use to conduct a thorough credit check. Once this has been completed and it is confirmed that you have a respectable credit score, you can then use this when approaching leasing companies in order to negotiate a better deal.
Maintenance and warranty coverage
Maintenance and warranty coverage can differ from one leasing company to the next. For this reason, it’s essential to be clear from the outset what is covered and what isn’t.
You should be aware that if the lease term is longer than the warranty, it’s entirely possible that you may be required to pay for any repairs towards the end of your lease.
Top tip: Make maintenance and warranty coverage one of your first questions
Before you even begin to negotiate a lease, ask about the maintenance and warranty coverage that the respective leasing company offers. From this point, you’ll have an idea if a potential lease with them will be suitable for your requirements.
Insurance
When leasing a car, you must have fully comprehensive insurance – having just third-party or third-party, fire & theft won’t be acceptable.
You should therefore ensure that your insurance policy covers:
- Damage to the leased car
- Damage to other vehicles or property
- Injury to others in an accident
Don’t worry, leasing companies should make it clear to you that only comprehensive cover will be acceptable.
Top tip: Factor insurance into your overall costs
Before you approach a leasing company, pick out several cars that interest you and look into how much insurance would be for each one. Once you get a clear picture, you can factor this cost into your budget before making an informed decision further down the line.
Why lease a car with Motorfinity?
At Motorfinity, we offer unbeatable leasing deals to eligible frontline workers to acknowledge the hard work they provide to our communities. Our knowledgeable team provide a smooth and friendly service, who are driven by one goal: to find your dream car at a price that is affordable for you.
Speak to a member of our team todayRelated Car Reviews and Articles
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