While you may think that your biggest decision when shopping for a new car is which make and model to get, in fact, it may actually be the decision of whether to lease the vehicle or not. Leasing a vehicle is nothing new in the UK, but it does seem to be picking up steam as far as popularity goes. Drivers are seeing it as a more flexible option, among other benefits. According to statistics, there are more than 1.6 million drivers who are now leasing their vehicle in the UK, which begs the question of whether it’s a good financial decision.
Here, we’ll take a look at the pros and cons of leasing a car, so that you can make an informed decision on your next vehicle.
More Affordable Monthly Payments
One of the biggest benefits of leasing a car, and typically the main reason people consider it at all, is that it can lower your monthly payments significantly. Because you aren’t paying off the full value of the car, your payments won’t be as high. Because your car payments are lower, it also means that you can afford a nicer vehicle.
Let’s say you have your eyes on a high-end vehicle like the Range Rover Sport. Purchasing it up front is probably out of the question, but when you secure a Range Rover Sport lease, suddenly those monthly payments fit into your budget. You’ll have the opportunity to drive your first-choice vehicle, the Range Rover, without going over budget.
Enjoy a New Car Every Few Years
Another benefit in leasing is that you can look forward to a new vehicle every few years. The idea behind leasing isn’t that you hang on the car for long periods of time. Instead, you sign a lease that tends to last a couple years, and then at that time you trade in the vehicle and start over again.
Because your lease ends before the car starts to get old, chances are high that it will still have a warranty and that you won’t have to worry about expensive repair bills, which happens with wear and tear over time.
There May Not Be as Many Up-Front Costs
Another benefit is that there aren’t as many up-front costs when you lease your car. Depending on the leasing company and terms, you may not even have to put down a down payment.
The Big Con – You Will Always Have a Car Payment
As far as the negatives go, the big one is that you will always have a lease payment. It’s not like when you purchase a car, where you will eventually pay it off and are left with no car payment. The lease payment lasts the duration of the lease, and then it’s time to trade it in and start over.
It Makes Sense in the Right Situations
Leasing a car can be a very good financial decision for some, as it gives them a way to afford the car they want, get a new vehicle every few years, and not have to worry about maintenance and repair bills piling up.
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