Leasing a car can be hugely beneficial rather than buying one, but is it the right for you? To choose the right way, we have five questions you should ask yourself…
1. How often do you drive?
Most leasing companies will have a restriction of miles a car can be driven per year, which estimated amount is between 10k to 15k. If you regularly go on long road trips with your friends or you’re a commuter, leasing is not the best option for you. But, if you mainly use your car for personal use, leasing can be a good solution for you to save a considerable amount of money.
2. How much money do you need?
Buying a car is more like an investment, in that all the money is given up front, from the paying price of a vehicle to the insurance, initial service, etc. In this case, it is risky than leasing a car, due to you are hoping that everything will go smooth. When it comes to leasing, it requires almost no initial payment that helps your wallet. Moreover, you can change your car every three years for a new model, so service and repair costs are far from lower.
3. What are my living arrangements?
If you live in a busy city where public transportation is much faster and convenient for your commute than driving and you only need your car for visiting family and friends, then leasing a car for such circumstances is the best option. If your circumstances are likely to change, it that case leasing a car means that you don’t have to worry about selling anything. When the agreement expires you give it back.
4. Are you running a business?
If you have an active business then leasing a car has more benefits to you, as you can claim the tax back on the monthly instalments as a business expense. Some UK car leasing companies, such as “All Car Leasing”, display two prices – for personal contracts and one with a 20% discounted price for business owners on their website.
5. Can you drive safe?
In conclusion, ask yourself how much damage will you do to your car. If you haven’t been driving very long and you’re likely to cause a few scratches, you will have to cover for damages according to the lease agreement. Always read before signing the contract. If this sounds like you, we recommend you to buy an older car which seems like a smarter move.
