What Happens When My Car Lease Ends?
Leasing a car is very different to buying a car outright and can bring with it a lot of great benefits. From affordable monthly payments to breakdown cover, leasing can put you in your dream car and make sure you’re protected in the event of accidents. The terms you select can also help keep costs low and ensure you’re covered in the event of repairs or maintenance when needed.
But what happens when the lease ends? It’s common that those who don’t know the details of lease agreements will shy away from them in favour of buying a car outright. Of course, if you buy a vehicle, you now own it, whereas a lease deal means you will have to return the vehicle to the provider. But it’s not as black and white as you may think.
Your Lease Has Ended – What Next?
One of the most popular reasons people choose personal car leasing deals is because it allows them to drive a brand new car that they may have otherwise never been able to afford. New vehicles can be very expensive and cost a lot of money upfront, but it’s important to remember that if you choose to spend this, it’s almost certain that you won’t recoup the same amount of money when you sell the vehicle.
This is due to depreciation and means that you’ll lose out on a large chunk of the price you paid, even if it’s just a couple of years later. This means that you’re paying extra for the novelty of driving a new car. In addition to this, if you wanted to get another new car after selling your old one, it’s unlikely you would have enough money purely from selling your previous vehicle.
This is where lease deals come in. You can choose a lease deal on a vehicle of your choice for a set number of years. This will determine how long you will drive the vehicle and the length of time in which you will pay the monthly instalments. Upon the conclusion of your contract, you will return the vehicle to your provider. Granted, you won’t own the vehicle, but you won’t have to sell it at a loss either. Instead, you can simply begin a new contract with a brand new vehicle. This means you can essentially jump from one new car to another, just by choosing a lease deal.
For those who like to drive the latest and greatest models available on the market, a lease deal is a perfect choice. You can choose to include breakdown cover too, which can protect you in the event of unforeseen circumstances and prevent you from being blindsided by additional costs.