When you lease a car you rent a car for a certain amount of time and make small monthly payments at a fixed price. You can also either get a short or long term lease contract and pay anywhere from 6-48 months, depending on which deal suits you and your business best. At the end of your lease, you can simply hand the lease vehicle back or choose to purchase the vehicle.
There are a number of pros to choosing to leasing your next car rather than buying it:
Car leasing will be more cost-effective for you in the long run, rather than buying outright. The monthly payments are at a fixed rate and can be spread out for as long or as little as you choose. The deposits for the car are usually pretty low too, and sometimes you may even get the option to lease a car without having to pay a deposit at all. This means that you can essentially afford to drive a car that may have been too expensive for you to afford before.
You won’t lose money
One of the main concerns when buying a car is that it will start to lose value from the moment you start driving it. This is known as depreciation. You’ll then have to start worrying about the money you’ll lose when you want to sell it to upgrade to a new car. However with leasing, this isn’t the case. At the end of your lease contract, you can choose to lease another car or return your current one without having lost any money due to depreciation.
Different plans to suit you
There are many different options available to you when it comes to choosing your leasing contract type. There is PCP (personal contract purchase) and Hire/Lease Purchase, which are available to you if you want lower monthly payments with the option of owning the car at the end of the lease. With Business hire and Personal hire, you can simply pay monthly, but you don’t keep the car at the end of your lease. Instead you can opt to upgrade and lease an entirely new car.
Credit problems aren’t an issue
If you’re someone who suffers from bad credit, then you don’t need to worry because more affordable or ‘cheap’ car leasing is still an option available to you. Many places now offer you leasing options even if you have bad credit. At Hippo, we can help find a deal to suit you, regardless of your credit situation.
Optional packages to choose from
When you’re deciding which lease car you want, there are loads of extra options to choose from to help you save more money and make your life easier. Some come with road tax, include warranty and have breakdown cover. These are all included in the monthly payments. Meaning that you have less details for you to worry about.
Overall, the pros of leasing a car start with much more flexibility. It’s a cheaper option to get a better car, which you may not usually be able to afford. You can get help with finance (even if you have bad credit), there’s no depreciation, and you don’t have to worry about selling it when you want to upgrade to a new car. The leasing company takes care of everything for you, so you can enjoy a ride in your new car relaxed and stress free.