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A closer look at personal car leasing

Personal car leasing offers drivers a wide variety of benefits, but many today still remain reluctant to lease their vehicle. This is often due to the unreasoned desire of ownership, as well as a lack of understanding of what leasing actually involves and its benefits. Now that more and more information is readily available online with an extensive selection of car leasing brokers such as TFS Vehicle Leasing that are offering increasingly attractive lease car deals with all the help and guidance you need, it’s time consider the advantages of vehicle leasing.

What is personal car leasing?

Essentially, personal car leasing is a more cost-effective way to acquire the car of your dreams. Instead of buying the car outright, you will usually have to pay a fraction of its cost upfront, then a monthly fee. When you lease a new car, your payments will typically cover the depreciation of the car over the period of your lease agreement. At the end of the lease agreement, you return the car to the leasing company with an option to renew your lease agreement on a new car, or you can buy the car from the leasing company depending on the type of lease. This whole leasing process can make it more affordable to get the car you want, and help you to spread the cost of the purchase over a longer period of time. Since you do not own the car outright, you have to keep it in good condition, according to the terms and conditions of the lease.

Choice of cars

You can select from a wide choice of new personal lease cars available across most of the top brands; even luxury and high performance cars can be leased as long as your credit rating and affordability assessment criteria satisfies the finance company.

You may be surprised at just how affordable these models can be. BMW, Audi, Mercedes and Volvo are among the many high quality car manufacturers that have models available to lease, and they don’t have to break the bank either – get quotes from several brokers in order to find the best deal.

Your selection criteria not only ends at the marques but you can also choose colours, interior, engine and entertainment specs and eve body styling kits.

The range and the variety of car lease deals available are huge when it comes to choosing a personal car for lease and you will surely be spoilt for choice as just a few pounds could stretch your options to make a big difference on the vehicle spec.

Benefits over buying

If you are still wondering whether to lease or buy then let us highlight a few key points to consider.

Leasing a car has many benefits compared to buying a car outright. The most obvious of these is that it makes driving a brand new car much more affordable.

Generally, payments on a car lease are between 30% and 60% less than the repayments on a loan for a similar vehicle because you are financing the depreciation value of the lease term and not on the entire purchase cost. Plus, at the end of your lease, you’re not left owning a car that has significantly decreased in value which you need to take on the hassle of selling to a new buyer.

You can change your personal car every 2-4 years depending on the terms of agreement at a fixed manageable monthly budget. As a result you can have the option to always drive a new up to date model and enjoy the latest technologies and design uplifts on your favourite car.

Finance options

Take advantage of the lowest ever interest rates that are reflected in the monthly costs making lease cars affordable with very low deposits.

There are in fact plenty of finance options available if you decide on leasing your new personal car. The lease price of a car usually comprises of the financial difference between the cost of the car when it’s new, and its estimated residual value once the lease agreement has come to an end, along with commission fees and interest.

How much you intend to drive the car will also have an impact on the finance options on offer to you. Put simply, the more miles you are going to put on the clock, the higher the cost of the lease will be. Pay attention to the mileage options on the agreement offered to you; if the mileage is too much, negotiate a smaller amount, as it affects the depreciation value and will probably lower your monthly payments.

There are two other main personal vehicle leasing options: hire purchase and personal contract purchase (PCP).

Hire purchase involves putting down a deposit of between 20% and 50% of the value of the car, and you continue to pay the remainder with instalments until you own it outright.

With contract purchase, the deposit is usually a lot lower than it is with hire purchase, while there is also a lower monthly repayment amount. At the end of the lease you either hand the car back or make a final balloon payment (the guaranteed future value) in order to buy the car.

When it comes to car leasing, there are many factors to consider and lots of information in each leasing provider’s small print, so consult a broker to ensure you understand everything and get the best deal for your needs.

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