Hiring a vehicle on a Long Term Lease 0

So you want a new car, but you don’t want the hassle that comes with owning it. These days, many people are turning to leasing their car, rather than owning it. At first, this might seem like a silly idea to a lot of people: you don’t own it, you can’t re-sell it, you’re just… well… hiring it. For a very long time.

However, leasing a car has its perks. You get a brand new car; You don’t have to pay to get it fixed when it breaks down because it’s covered under warrantee; You get the latest model, another new vehicle, every couple of years. But is it financially viable?

Like all things, it has pros and cons. When most people buy a new car, they keep it for a very long time. During that time, the value depreciates, you have to pay for parts, repairs, and when you finally sell it, you get a very small percentage of what you paid for it and spent on it, over the years. If you buy it using a loan with a high interest rate, you will end up paying a huge amount more than if you bought it outright, so this is another ‘loss’ to consider.

If you lease or hire a car, the biggest drawback is that you don’t have anything to sell at the end of the process. So if ownership is not a priority, but what is important to you, is driving a new car and never having to pay for repairs, leasing could be right up your street. If you own your own business, you can also look into tax benefits and deductions.

However as with all big decisions, you must research the lease offers carefully; there are often restrictions such as annual mileage limits, and requirements to keep the interior and exterior parts in good shape (if you do have an accident, it is up to you and your insurance to pay and have it repaired – this wouldn’t be covered by the warrantee).

In general, your short term costs will be lower if you lease rather than buy and your monthly payment is likely to be a lot smaller than if you took out a Loan or HP agreement. So if you can get your head around paying for something but never actually owning it, you might just want to give it a go.

Servicing Stop – car servicing at less than dealership prices, MOTs, free collection and delivery nationwide, all makes and models.