Is leasing a good option may remain as one of the topics of eternal debates of the motor industry and the answer might not always be clear at first. In scenarios like this, proper data-driven research can be the only way of coming to a meaningful and useful conclusion. However, who has the time for that? Well, we do and we have done all the research on the UK leasing market and here are the conclusions that we were able to come to.
3 Years Is The Ideal Lease Duration
Leasing and buying have their own pros and cons and it all boils down to the timing of it. Leases are usually for a certain period of time and as per our research, a three-year lease is the best option. This is what offers the best returns on your investments. This was calculated by considering the various factors involved such as depreciation and the resale value of a used car. Anything longer than three years and it is best to outright buy a car as a lease won’t offer any benefits. Anything less than that and a lease is a much better option as you won’t have to bear the brunt of the depreciation in the car’s value that takes place during the first few years of a car’s life.
Leasing Is The Best Option For Those Who Do Not Get Attached To Their Cars
If you are someone who likes to form an emotional bond with your car then a lease isn’t for you. As explored previously, if you plan to keep your car for more than three years then buy it. Beyond that magical number of three years, there is very little benefit to leasing especially since you will have to part with the car once the lease period ends.
Leasing Has Grown Despite The Car Industry’s Slow-Down
The last few years haven’t been all that great for the car industry as the economy has been going through a weak phase which has been further compounded by the current pandemic. Numbers related to car sales have gone down but numbers associated with leasing have grown in the same period. This is a very encouraging sign and it has also led to some amazing car leasing special offers. As a consumer, there has never been a better time to lease a car.
It Is More Economical Than Buying Used Cars
One final confusion that people considering leasing a car have is whether to go for a used car instead. After all, they tend to be more affordable and can invoke a sense of nostalgia. However, purely from a monetary point of view, used cars may come with a lower upfront cost but over a couple of years, they cost just as much if not more than a lease. They tend to consume more fuel and are prone to breakdowns and often cost more to maintain in running conditions. Finally, when you do decide to part with a used car, their value can depreciate to the point where the entire endeavour can be a big loss.