The Benefits of Car Leasing
Business and personal customers are increasingly turning to car leasing instead of buying cars outright. A monthly car payment has now become as normal as a mobile phone payment as more and more drivers discover the benefits of leasing.
What is Car Leasing?
Contract Hire is the most popular type of leasing a car and involves paying an agreed monthly fee for a vehicle, for a set period of time (usually between 24-60 months). Once that time period has passed the car will simply be returned to the leasing company and you can choose your next one! With Personal Contract Hire there will be no option to own your vehicle. If you would like to own your vehicle you may opt to enter into a Personal Contract Purchase or Hire Purchase - read 'The Ultimate Guide to Personal Leasing' to become an expert on different leasing options available to you!
What are the benefits of leasing?
#1 Many drivers find monthly payments helpful because it means they will often be able to afford to drive a car that they may not be able to afford to buy outright. This is because the cost of leasing a car is typically based on the amount the car is expected to depreciate over the lease period and what the vehicle is worth at the end of the lease, known as the residual value.
#2 Low Cost. The lease cost is based on depreciation and as a result the best cars to lease are those whose residual values stay high over a period of time. Unlike buying a car using finance this means more premium brands and better-equipped cars can be the best options when it comes to car leasing.
Premium cars can have lower leasing rates relative to their cost while cars that lose their value more quickly so will be subject to higher leasing rates as a percentage of their cost.
Leasing car customers will often benefit from lower costs of car ownership for premium vehicles than if they were to buy the car outright - so it is easy to see why so many people in the UK are turning to car leasing.
#3 Low Risk. The monthly price is not the only benefit leasing a car can give. The car is handed back at the end of a contract. This means that if the car does depreciate more quickly than the predicted rate the driver is not left out of pocket.
Instead a car leasing deal ensures the leasing company itself takes on all the risk of depreciation. Leasing deals are usually fixed rate which means the driver will know exactly what he or she has to pay every month without any unexpected surprises.
#4 No Hassle. Car leasing is also one of the simplest methods of getting behind the wheel of a new car because there will be no need to browse car sales websites, pay for checks on potential purchases and sell your existing car. Instead the leasing company will deliver the car to your door and pick it up once the leasing deal is up, all free of charge.
A car leasing deal is a great option for drivers who like to change their car every couple of years without all the hassle of buying and selling outright. The flexibility, low costs and risk-free nature of a leasing contract mean it is not just an option for business drivers.
The benefits of car leasing do not end there. Depending on the leasing deal chosen there are plenty of extras that can make life easier for a leasing customer. For example, some leasing deals will offer breakdown cover, maintenance, tyres and road tax as part of the monthly payment. If this is the case the only thing the driver need worry about is insurance and fuel, leading to a truly hassle-free ownership experience.
Why should I Lease My Next Car From Rivervale?
At Rivervale we specialise in car leasing and offer all makes and models for our customers. We want to give out customers professional advice and the best possible customer service, without any pushy saleman so often associated with car sales. Our commitment to customer care is reflected in the fact that we are currently the #1 rated car leasing company in the UK on Trustpilot.
When our Account Managers provide a car leasing quote for a customer, the price includes road tax costs and we do not charge any administration fees, meaning the price you see, is the price you will pay with no hidden charges.
At Rivervale we are able to offer all our customers a part exchange service, making changing your car as simple and hassle free as possible. For customers who are local to our head office in Portslade, Brighton we can now go one step further and and look after all your MOT and Servicing needs in our new Bosch Service Centre contained within our offices at Rivervale House.
Choosing car leasing is a low-cost, low-risk option when you are in the market for a new car. It is certainly an option worth considering before buying a new car this year!
The comments above do not necessarily reflect Rivervale's views unless clearly stated.
16 August 2017
Written by Matt