You may have more than a few options when it comes to acquiring a new vehicle, and one of your foremost options is leasing. Although leasing doesn’t give you vehicle ownership, one of its main advantages is that it allows you to get a luxury car that you may not otherwise get if you were to pay for it completely. Another benefit of leasing is that it can save you money on monthly payments in the long term, and it can save you in terms of a costly deposit up-front. But just like other options, car leasing can come with limitations as well; it’s up to you do decide how these limitations will affect you in the end. Here’s what you can really expect when you lease a vehicle: your top questions answered.
A brand new vehicle without the cost and hassle
With leasing, you can benefit from a brand new vehicle without the cost and hassle. Essentially speaking, leasing has a lower cost per month than other financing methods and options, and since you are simply renting the vehicle, you won’t have to worry about other factors such as the cost of depreciation and can upgrade your car once the term ends. Most deals for car leasing run for only two to three years, and you don’t have to deal with any pressure to purchase the vehicle at the end of the contract.
You aren’t tied down for the long term
Once the contract ends, you can simply give the vehicle back to the leasing company, and you don’t have to contend with additional fees (unless you go over the mileage limit or have damaged the car). You can then start anew with another contract hire and leasing deal that gives you another brand-new model. This basically means that you are not tied down for the long-term – since most deals are only two to three years long, you don’t have to be stuck with an old model for a decade, and once the contract ends, you are free to make another choice without having to trade or sell the vehicle.
You can take advantage of full warranties
Since personal contract hire deals are given for vehicles that are brand new, they are still be covered when it comes to the warranty of the manufacturer. The contract or agreement’s length usually means that the vehicle is under warranty for the whole duration of the agreement, so you don’t have to be worried about repair or maintenance bills. Also, new vehicles are less likely to have problems – and even if a problem comes up, it should be sorted out quickly with the least amount of hassle. You may also be able to take advantage of gap insurance as part of your leasing agreement, which means that you will not have to settle the rest of the agreement or contract in case the vehicle is written off or stolen.
You benefit from lower monthly payments
The monthly payments associated with contract hire deals may be lower compared to a PCP or personal contract purchase deal simply because you don’t have the option to purchase the vehicle at the end of the deal. You are merely renting and using it for a few years, and besides the initial deposit, you don’t have to be faced with extra fees or charges.