5 Reasons Why Leasing a Car Makes Sense

by Redeeming Riches on October 25, 2012

Leasing a vehicle allows you to temporarily drive a car without actually owning the vehicle. You make payments to borrow the car; and you return the car to the company after the period is complete. Leasing terms are usually shorter than five years, and the monthly payment amount is lower than a car loan. Your payment will be based on the anticipated mileage that you expect to drive. With most leases, you are expected to drive about 10,000 miles. In some cases, you will be required to pay road tax. When leasing a vehicle, you will usually pay for the first three months up front. You will then make payments for 35 months. If you are considering leasing a vehicle, here are five reasons why leasing does make sense and why you should take advantage of the many car lease deals going on right now!

1. You can drive a better car: You can drive a nicer vehicle at a cheaper price. The payments you make each month will be lower, and you can impress your friends and co-workers by having a great car. If you desire to drive a more lavish vehicle, then leasing could be your best option.

2. You do not have to worry about depreciation: If you pay money for a new car, the value of the vehicle will gradually decline, and you would lose thousands of pounds. The mileage will increase, and the wear and tear on your vehicle can cause problems. When the term of the lease is complete, you can just return the car and get a new lease on another vehicle. If you own a car, the value will depreciate and you will be stuck paying the cost of repairs.  For contract hire and leasing companies, this make the most sense to keep their costs down.

3. No down payment: You can drive away in a leased vehicle, and no money is required. When you own a car, you normally are required to make a 5 to 10 percent down payment. Having access to that much money could be difficult. When leasing a vehicle, you will just need to pay the first three months of payments.

4. You can change cars frequently: When you own a car, it tends to have more problems as it gets older. You will then need to pay for the maintenance and repairs. If you lease a vehicle, you can just return it, and you can exchange it for a better car. You can enjoy a new car every few years, and you can have the latest amenities that new vehicles offer.

5. The warranty will cover costs: When you own a car, the cost of parts and labor can really add up. If you are leasing a vehicle, it is covered by the warranty, and you will not have to pay huge repair fees. You will only need to pay for an oil change, new tires and other servicing costs.

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