It’s a stressful situation to be in when your car breaks down, and your mechanic tells you there’s nothing he can do about it. People don’t want any unexpected expenses and having to buy a new car can be financially worrisome. With an initial deposit and high monthly repayments to think about, it can be hard to budget a measly income and still expect to get by.
It’s just one of the reasons why long-term car rental is becoming a popular option in the UK. It used to be only available for business owners, but with an expanding market, financing companies now offer it to individuals as well. If you need to buy a new car but you can’t because of financial concerns, long-term car rental is something you can consider.
Will it be more affordable than buying a new car?
Technically speaking, leasing a car is cheaper than buying a new one because of the lower monthly repayment scheme. It also gives you the opportunity to drive a car you’ve always wanted but don’t have the budget for. Regarding investment, however, it’s not the best option because you’ll need to return the car after the contract has ended. So even after paying thousands of pounds, you’ll end up with nothing.
When opting for a long-term car lease, you may want to keep in mind that it’s not designed for small and compact cars. It’s an option that’s meant to attract people who want to drive their dream car but can’t pay the price tag that comes with it. For example, renting a hatchback will cost you around £7,500 for three years. That’s enough to buy you a compact car within the moderate price range.
With long-term car rentals, you can drive a smart 4WD car for two to three years with only £11,000 out of pocket expenses. It may seem like a significant amount to pay, but that’s nothing compared to the £47,900 that you have to pay for a brand new SUV. You can also consider options like buy here pay here as well.
Do you need to pay for regular maintenance?
There are financial companies that include maintenance and servicing in the monthly repayment fee. This is the beauty of renting a car because there’s nothing else you have to worry about besides meeting the mileage agreement, getting car insurance, and taking care of the fuel costs.
Keep in mind though that it’s an optional package that you can choose to avail of or not. Sometimes it can be better to ask around about how much regular servicing will cost because it can be cheaper to pay for it yourself than make it inclusive in your contract.
Looking for the cheapest lease deals is now easier because of the information available to consumers online. It’s also to the customer’s advantage because the market is competitive and everyone aims to deliver the cheapest and best service to their clients. Once you find a financing company of your choice, the process is almost the same as buying a new car. Choose your car, and they will check your credit score and financial capability. Once that’s all good, you’ll need to pay for processing and make a deposit, and just wait for the delivery of your new car.