Leasing has really taken off in recent years; a couple of decades ago, hardly anyone leased cars, but with rising costs, it has become essential for many people and businesses. It’s actually estimated that one in five cars are now leased in some way or another, and that figure rises to as many as three in five for luxury vehicles. So why do so many people choose it over purchase or other methods of finance?
Cost – This is the main reason for people choosing to lease a car. The overall price paid over the life of the contract is generally significantly less than with a loan, and there is of course no large initial outlay. Deposits are usually three month’s rental. Businesses also receive a variety of tax incentives for providing their employees with cars, meaning a win-win situation for everyone.
Car – Because prices are lower, more expensive cars become affordable. Very few people can afford to pay for a luxury or executive car outright, but when costs are monthly, better cars are in reach. This is one of the reasons that employees love business leasing; they can drive around in a brand new executive car that they wouldn’t normally be able to buy.
Maintenance – Many contracts can have maintenance included, which means that whoever is using the car doesn’t have to worry about servicing and other similar costs. Wear and tear generally isn’t included though, and it’s a good idea to look through any policy details.
Economy – The simple fact is that newer cars are more fuel efficient. By leasing cars every few years, you can be sure that fuel costs will remain lower than if you’d bought an older vehicle. Again, there are also often tax incentives for efficient cars.
Companies such as www.hitachicapitalvehiclesoloutions.co.uk also provide fleet services, which mean that businesses can lease a large number of vehicles, further bringing down costs. If your company offers business leasing, then jump at the chance of driving one; it could mean that you get to cruise around in a much nicer car than if you bought one yourself.