If you’re looking for the pros and cons of leasing a car, this article is for you!
We will explore the reasons why you should lease a car alongside the cons associated with running these types of cars.
We’ll discuss costs, credit histories, maintenance packages, wear and tear, and much more – this way, you have all the information at hand to make an informed decision to suit your needs.
Here at LeaseCar, we have a wide selection of car lease deals so you can find the right option for your lifestyle. With various lease lengths, mileages, and initial rentals, you’ll be sure to discover the perfect car lease!
We’ve been leasing cars across the UK for more than 25 years – will you be next?
If you know that car leasing is right for you, get in contact with our friendly team today.
Still on the fence? Keep reading!
Let’s Get on the Same Page, What Does Lease a Car Actually Mean?
Car leasing works very similarly to leasing a property, which we are all probably more familiar with!
There are five simple steps:
- Choose the car you would like to lease
- Credit check and financial approval
- Sign an agreement that states your lease length, annual mileage, and initial rental
- Pay a pre-established amount every month
- Once your lease agreement is up, return the vehicle back to us
It really is as simple as that!
Almost…
There are a few caveats regarding fair wear and tear, credit scores, and mod-cons, but we’ll get into that later.
The Advantages and Disadvantages of Car Leasing
We’ve explored a range of pros and cons of car leasing so that this way you can get a complete understanding and make the best decision for your needs.
Why People Lease Cars – The Pros
Car leasing has increased in popularity over the last few years. So much so, that 69% of young drivers (18-24) are hoping to lease a car at some point in the future.
And for a multitude of good reasons – let’s check them out!
Low Monthly Costs… That Are Fixed!
Car leasing may be one of the most cost-effective ways to get a brand-new car. When compared to other financing options, there’s usually a lower monthly cost as you won’t be buying the car outright.
The best bit? Car lease deals are fixed for your entire lease length, so you can forecast potential fixed costs (tyres changes, for example).
Even traditionally expensive vehicles, such as:
Can be affordable depending on the type of lease you choose.
Especially in the current climate, leasing a car is a great way to save some money, whilst still accessing some of the best vehicles on the market.
Commitment-Phobe? No Problem
Once you buy a car, you’re stuck with it for who knows how many years.
With leased cars, you have the car for a minimum of two years, hand it back (depending on the T&Cs). If you want, you can always then sign an agreement for a new car lease.
Less commitment, less hassle – a win-win all around!
No Need to Pay through the Roof for Maintenance
It’s no secret that new cars are less likely to need maintenance. However, life happens and some items may need replacing, like tyres.
At LeaseCar, we have a range of affordable maintenance packages that you can add to your monthly rental. By choosing one of these packages, you can spread the cost of maintenance across your agreement length so that it isn’t one big payment unexpectedly.
Each package includes different coverage levels, so please make sure to read the details to ensure you know what is included.
You Control Your Monthly Costs
The price to lease a car depends on the terms you choose for your lease, such as:
- Lease length
- Annual mileage
- Initial rental
The more money you can offer upfront, the less you will need to pay each month to lease your car.
Like That New Car Feeling? Leasing Is for You
The pristine interiors, the glistening shine, that smell – who doesn’t want that new car feeling more often?
Car leasing gives you the opportunity to get that feeling and all the benefits of new cars more frequently.
Not only offering you peace of mind but also that dopamine hit time and time again.
Say Goodbye to Depreciation
We all know that as soon as you drive the car you’ve just bought out of the dealership, its value has decreased exponentially.
But with car lease deals, you don’t have to worry about that at all!
Any depreciation value of your leased car has been considered within your monthly rental, so you can just sit back and enjoy the drive.
Forget about the Hassle of Selling
We all know how difficult it can be to sell a car.
The thing is, it always takes more time than you first envisioned.
All the cleaning, admin, and schmoozing potential buyers – isn’t your time better spent elsewhere?
According to a report by JATO, five million people in the UK now lease a car. With more and more people making the switch to leasing, the harder it will be to sell a car.
When you lease a car, there is minimal hassle involved – simply hand it back to us (in a similar condition to when you got the car) and you’re done!
This way, you can get back to what’s really important.
The Cons of Leasing a Car
There are numerous advantages to having a car lease deal – however, like anything in life, it is a double-edged sword.
You’ll Never Own the Car
Let’s return to the property analogy. Just like when renting a house or flat, you do not own your home. When you lease a car, you also do not own the vehicle.
Therefore, when it comes to the end of your lease agreement, your vehicle has to be handed back in (unless you renew or extend your contract).
We’ve already discussed the benefits that this lack of commitment can bring, but to some, this could be a deterrent.
Let’s Define the ‘Fair’ in Fair Wear and Tear…
We’ve all heard of fair wear and tear, but does anyone actually know what it means?
We’ve got you.
Now, we understand that cars naturally get a bit of deterioration when used day to day. That’s part of life! It is this that we call ‘fair’ wear and tear.
It’s important to take care of your leased vehicle to ensure you do not become subject to any surprise costs.
How Many Miles Is Too Many Miles?
When you take out a car lease deal, you will agree to a set annual mileage amount that will impact the cost of your monthly fee.
Once you have agreed to your annual mileage, it is expected you will stay within this number of miles each year. But things happen, and if you do exceed this amount, you will need to pay an excess mileage charge. They’re usually very fair, but it’s something to bear in mind.
Before you take out your car lease, we recommend that you carefully calculate your typical annual mileage and leave some room for unexpected trips.
After all, it’s better to be safe than sorry!
Do You Have a Good Enough Credit Score to Lease a Car?
We understand that car leasing is a great option for those who do not have enough money for a brand-new vehicle.
Saying that, you will need a good credit score to lease a car.
What do we mean by good?
It differs from provider to provider, but typically, a good credit score is usually marked from around 880.
Before taking out any credit, it’s worth checking out your current credit score and, if needed, taking action to improve it.
There’s a Fee If You Want to Leave the Party Early
As we’ve said before, when you take out a lease car deal you enter an agreement with the leasing company.
Due to this, if you do want to exit your lease early, you will be required to pay an early termination fee.
The exact price of this fee is determined by the amount of time lease as well as the condition of your vehicle when it has been returned.
Still Unsure about Car Leasing? This Is What One of Our Long-Standing Customers Has to Say…
Samantha Middleton has been a LeaseCar customer for twelve years, this is what she has to say about car leasing:
“I’d had a company car for many years and when I moved to a job that didn’t include this as a benefit, I chose to lease a car rather than purchasing one. I love the benefits car leasing gives to me, such as changing my car every 2 or 3 years.
“I’ve only had a good experience with leasing cars – it’s simple and straightforward! On my current lease, I’ve got a high end car for a great deal and would get another lease deal in the future.
“The LeaseCar team are quick to provide quotes and the admin team have always been easy to work with, giving you a good indication of all the costs involved so you can see what you can get for your budget.
“I would get a car lease deal again!”
Now You Know Why to Lease a Car, Reach out to Our Team Today!
We hope this article has given you a comprehensive understanding of both the pros and cons of car leasing.
Some people would consider some of the notions discussed as negative, but it’s important to assess each point in relation to your life. As what may be one man’s trash, just may be your treasure.
For example, the ability to get a new car every couple of years may be more beneficial to you than owning a car due to the depreciation value and ongoing maintenance fees.
Therefore, before committing to a lease, take a step back to view what’s important to your life – not someone else’s opinion – and make a decision based on that.
This way, you can be confident that you are doing what’s right for you and your lifestyle.
If you think a lease car is the perfect solution for your needs, reach out to our friendly team today and they’ll find the right car lease deal for you.
Or if you’d prefer, simply fill out our online contact form. We’ll get to work straight away and put you on the road in no time!