Car Leasing

When someone wants to buy a car, especially a new car, they know that as soon as they drive it off the lot it starts to lose value. As time goes on, the value of the car starts to depreciate and eventually the automobile is worth very little, merely a fraction of the initial investment.

This talks many people out of the idea of purchasing a new car. It is hard to convince oneself that spending £25,000 on a brand new Mercedes is a good investment when 5 years down the road the car will be worth less than half that amount. In addition, if you are a car enthusiast, you may want to purchase another car sometime in the not-too-distant future, and it is very hard to do so when you have already spent such a great deal of money on your last car.

 
Car Leasing
That is where car leasing comes in. Many car companies offer "leases" for their cars. This is comparable to renting a house. Although the object is something that is owned, in many ways it is not owned by you. Car leasing is like making rent payments on a car. These payments are usually a little bit higher than if you were to purchase the car, though not usually a great deal higher. Then, at the end of the lease period, you are required to give the car back to the dealership who is very likely to sell the car afterwards.

Car leasing is a good idea for anyone that wants to purchase new cars often. Leasing means that any repairs are paid for by the car company, and that the car's upkeep is only partially your responsibility. It also means that after the lease period is over, you are no longer responsible for car payments.

On the other hand, leasing means that you do not own the car yourself. Once the lease period is over, you are expected to give the car back no questions ask and receive no refund off your investment into the car over those several years. Like rent, you are paying money towards property that you do not profit off of.

 

So whether or not to get a car lease is debatable. For those that are okay with the idea of renting a new car, a car lease is a great thing as you will rarely have to pay any repair costs out of pocket and you will not be financially responsible after the lease period is over. For those that want to own the car so that they can sell it someday or use it for more than just the lease period, you may want to look at car loans instead, because they allow you to own the car, not the car dealership.

 

 

 





 Monthly Repayment   £
 
  • Please include your total income
  • Income
    Amount ( £) Frequency
     
    Home Secured Loans Debt Consolidation Bad Credit Home Loans Personal Loans Articles Resources Contact Us