There was a time in the past when leasing was one of those forms of car ownership that was only really used by businesses and not drivers looking for a vehicle with normal, everyday use in mind. However, things have changed dramatically over the last decade or so; so much so that the question of whether leasing is the way forward is very pertinent.
Although personal car leasing is very popular and sounds like a good finance option it’s important you get professional advice and the right packaged deal from companies like TFS Vehicle Leasing which have online access to thousands of cars and dealerships across the country.
In order to come to a reasonable conclusion whether or not lease cars are something that would suit you and your current situation, it makes sense to look first at what leasing actually is and then look at why people are more interested in it.
“British roads nowadays are leased rather than bought outright.”
What Is Car Leasing?
Leasing a car is a way for drivers to have a car to drive without paying the money for it upfront. You pay an initial amount as deposit and then a regular monthly rental fee over an agreed period of time. For example, you might purchase a brand new car with an upfront payment of £697 and then monthly charges of £69 over the course of 3 or 4 years.
It is also a good way for people to afford to drive a brand new car that would not be able to get otherwise. This helps them to avoid the often troublesome business of buying a second hand car. So, in addition to the cost of purchasing a car not being an issue, there is also the freedom of a more stress-free way of driving.
Another great benefit to a driver of leasing rather than buying is that once the contract is up and you return the car, you can then lease out a different car. So if you have owned cars in the past and felt like even though when you initially bought a particular model and loved it, after a few years it was beginning to bore you; with a car lease you know you only have a particular model for a set amount of time.
Why Is It So Popular For Personal Use Now
Apart from the obvious benefits mention in the above paragraphs, it is thought that one of the primary reasons for the increase in this practice for personal use is the fact it follows the same kind of financing that many use for other, high priced purchases.
Mobile phones are one of the most obvious examples of this as many people cannot afford the full price of a high quality, current smartphone model; so take out a monthly payment plan. It is tho
ugh not only within the mobile phone sector that this happens. Nowadays, it is more popular to subscribe or pay for things monthly rather than owning them outright. This includes things such as televisions, medical insurance and forms of streaming entertainment.
Making something easy to do doesn’t mean it shouldn’t be taken seriously. Car finance is something that is a long term commitment and if you can’t keep up with your monthly repayments it can have an adverse effect on your credit profile. You should always do your homework and check the important things before you apply for lease.
Once People Lease They Rarely Buy Again
The continued popularity of people financing a car with a lease also owes a lot to the fact that the majority of people who start leasing, rarely switch back to permanent ownership. SO as one lease runs out, they start a new lease rather than paying out for a car with money or loaned money upfront.
So with all of the above in mind, we are sure you can see the benefits of car leasing and why you should definitely give serious consideration to companies like TFS for friendly help and advice.
As a summary it is worth remembering why so many cars on British roads nowadays are leased rather than bought outright. This is for many reasons including:
- People are more familiar and comfortable with paying for larger priced purchases in manageable monthly instalments
- People cannot afford the rising price of the cars they want upfront
- People do not want to feel stuck with one particular car
Once their lease runs out, they are free to take out another lease for a different car.
Disclosure: This is a collaborative post.