What are the pros and cons of leasing a vehicle?
Many customers ask how does leasing a vehicle work? Car leasing is similar to rental, in that you are using a particular vehicle for an agreed length of time and for a set fee, usually between 2-5 years. You are free to choose the vehicle of your choice, the contract length, annual mileage and how you would like your payments structured. At the end of the lease you simply return the vehicle leaving you free to lease again. Leasing is not for everyone, there are many benefits including cost effectiviness, smart use of your money, peace of mind and hassle-free enjoyment. You may want to know what are the negatives of leasing a car? You dont own the vehicle at the end of the lease and should you want to settle early or go over your contracted mileage additional fees are applicable.
What are the advantages and disadvantages of leasing a vehicle?
- Drive a brand-new car every 2 to 5 years, see our special offers
- Avoid the problems and expenses of older cars
- Affordability - set you budget
- Fixed-cost motoring
- No depreciating asset
- No selling hassle at the end
- Avoid the expenses associated with ageing cars
- Road tax is included in most cases
- You won't own the vehicle at the end of the lease
- Wear and tear is your responsibility, please see our fair wear and tear guide
- If you exceed your contracted mileage you will have to pay excess mileage charges
- If you have poor credit you may not pass the credit checks
- If you terminate your contrat early you will be required to pay a termination fee.
Why lease a vehicle?
As a customer you may ask is leasing a vehicle worth it, is leasing a vehicle better than buying and what are the benefits of leasing a vehicle?
3 main benefits of leasing a vehicle over buying
- Lower up-front cost - brand new cars can be expensive if you pay a deposit or buy it outright and you may need to take out a loan or use savings. With leasing you can set your initial payment and monthly budget so you always know what you are paying.
- Brand new car - you get to drive a brand new car every few years depending on the length of your lease contract.
- Avoid the hassle of selling a car - at the end of your lease contract you return the car and walk away and have no worries of selling the vehicle at the end of the lease.
What are the risks of leasing a vehicle?
With any purchase you need to know what the risks are, customers may ask is leasing a vehicle a bad idea, what are the cons of leasing a vehicle? Before a cusotmer enters into a lease agreement we would strongly suggest that they look at all the benefits and risks.
- You can often get a better car for your budget by leasing rather than buying
- Lower monthly costs when you have a higher initial payment
- Few, if any repair costs because the car is brand new
- No hassle of having to sell once you reach the end of your contract
- If you terminate your contract early you will be required to pay a termination fee
- If you exceed your agreed contract mileage allowance you will be required to pay an excess mileage charge
- At the end of your contract you will have to pay for any damages that are outside the fair wear and tear guide.
How we can help.
Contact Central today and speak with a friendly and knowledgeable member of our team who can guide you through our simple lease process and alleviate any worries and concerns you may have so that you can make an informed decision before you enter into a lease. Check out our car lease deals today so you can drive your dream car!