When things are financially tight, shelling out for a brand new car would be pretty far from most peoples’ minds. It’s a well known fact that new vehicles depreciate rapidly from the moment you drive out of the showroom and even second hand cars carry a weight of financial responsibility when it comes to repairs MOTs and associated costs. However, any keen driver will know that there is no greater joy than customising your own vehicle, choosing the color and style, and adding on bespoke items to make it truly your own.
Leasing cars is becoming a more popular choice among people wishing to enjoy all the benefits of a great car, without the associated costs of purchasing a vehicle outright. There are a number of benefits and advantages to leasing which purchasing don’t offer. Many people don’t recognize just how beneficial it can be to lease a vehicle, as the options are often not clearly explained.
How leasing a vehicle works
Think of leasing as similar to renting a house, whereby the landlord is responsible for maintenance and upkeep. You don’t gain the capital value of the car, but you do get a number of advantages including regular upgrades to new models, reduced expense on repair bills, and the luxury of knowing that you won’t be hit by depreciation of the vehicle or ongoing maintenance costs. The following five points cover some of the positives involved with leasing your car, when compared to owning your own vehicle outright.
Drive the best vehicles, at a fraction of the cost
Car leasing enables people to have the luxury of ‘owning’ a brand new, top-of-the-range vehicle without having to worry about depreciation or fluctuations in the popularity of different car types. Leasing packages usually allow people to change their car for a new model every few years, meaning that you always have access to a reliable, new vehicle. As cars age, they tend to become less and less dependable, so choosing to lease removes the risk of things going wrong, giving you peace of mind that you can keep up with vehicles trends and select from a wide range of new models when you upgrade every few years.
Leasing options enable you to drive a prestigious car without having to pay the full price of the vehicle. This means you can access choices of car which you would not normally be able to afford, by ‘borrowing’ it from a company rather than having to take out a loan and stretching beyond your financial needs. In addition, a lack of expensive deposits when you take the car means that you don’t have as much initial financial outlay as purchasing a car can create.
Gain peace of mind that your repairs will be covered
Leasing options allow people who are safe and conservative drivers to own a car without being concerned about ongoing maintenance costs or upkeep. Even expensive repairs which are not covered by the manufacturer’s warranty can be covered through the leasing package, meaning that you can get the car fixed with no financial outlay. As you never own the car yourself, the owners are liable for repairs and maintenance associated with the normal deterioration of the vehicle.
Use the vehicle to benefit from tax breaks
If you are self-employed or an employer, leasing a car can save you a fortune in tax. This is because leased vehicles are an expense which it is permissible to claim back, meaning that you can benefit from writing your tax off against the car as a legitimate business expense.
Safeguard yourself with Gap insurance
Gap insurance is a standard offering which is expected to be taken out by people who lease vehicles. Gap, or Guaranteed Asset Protection, provides assistance if your leased vehicle is damaged or stolen during the time of your lease. If you owned your car outright, your insurance company would base their calculations on the used value of the car, even if it was written off. Gap insurance protects against theft, accidents and other mishaps which would otherwise leave you stuck in the red financially, as a car owner.
Save money on your car requirements
Leasing usually works out cheaper for car drivers than buying a vehicle outright. This is because when you compare the cost of purchasing a new vehicle every few years with leasing, you would be hard pushed to acquire the same quality of vehicle for anywhere near the same price. It is an uncomplicated and financially viable way of having a car which you are proud to drive, without the headache of being responsible for its ongoing upkeep. Leasing gives you the right to drive a car for a certain period of time, for less money than you would have to pay if you bought your own vehicle.