Should I lease a brand-new car?

21/09/2021 | Steve Lumley

Should I lease a brand-new car?

Are you shopping around for a brand-new vehicle and want to know whether you should lease a brand-new car rather than buy one?

If so, this Tilsun Leasing article will explain why leasing a car might be for you.

When it comes to buying a new car, lots of people still access finance to get a loan to pay for the car or dip into their savings.

This last route means handing over a large chunk of cash for a new car that could lose up to 40% of its value in the first three years.

That could be a sizeable sum if you are buying a premium car, for example.

But now, growing numbers of motorists are looking at the car leasing deals available and deciding that this route to driving a new car is for them.

There are several reasons why people are choosing to lease a car in the UK, and they include:

  • Affordability

The monthly payment for a car lease deal will be affordable for most of us. Indeed, you will need to choose a budget that you can meet and then select a car for meeting your needs.

  • Leasing offers variety

Leasing a car means having access to just about every manufacturer and car they produce.

  • Enjoy the latest technology

Since you don't own the car that you lease, you simply hand it back when your agreement ends, and you can then switch to a brand-new vehicle. This means that you get to enjoy the latest safety and technology that manufacturers are introducing frequently.

  • You don't have to sell

Also, not owning the leased car means you can't sell it, so there's no need to barter with a car dealership or spend time and money selling it privately.

  • The initial payment

Most car leasing companies will need an initial deposit which will be a multiple of the monthly payment. With Tilsun Leasing, this initial car lease rental can be one, three, six or nine months. Opt to pay a larger amount, and your monthly payments will fall.

  • Flexibility

When you lease a car, this is a flexible offering so you decide how long it will run for, for example, two, three or four years.

  • Mileage

You also decide how many miles a year you will travel because this affects the car's depreciation and how much you pay every month. Tilsun Leasing offers a range of annual mileage limits starting at 5,000 miles per year and rising to 30,000 miles. The choice is yours but it's always wise to overestimate how many miles you will travel to avoid excess mileage charges which, with some car leasing firms, can be expensive.

  • Maintenance and servicing

While you do not own the leased car, you are responsible for the maintenance and servicing of it. It's possible to include these costs in your monthly payment if you are after peace of mind motoring. Also, be aware that you may be liable for fair wear and tear charges if there is serious damage to the vehicle – as explained by BVRLA.

 

Is it cheaper to lease a car, rather than buy one?

As with most purchases, including the substantial cost of a new car, it always pays to sit down and calculate which will be the best way to pay for driving a new car.

With leasing, you will never own the car and when the term ends, you must return it to the car leasing company.

That's not the case when you buy a car, but you will need a large sum of money to pay upfront though you are not restricted with the mileage you drive.

For many people, car leasing is an attractive proposition, and the mileage limit may deliver a lower personal contract hire (PCH) deal.

Don't forget that paying a larger amount as the initial rental payment means you can lower your monthly payments.

Should I buy or lease my car?

Essentially, when it comes to deciding whether you should buy or lease a car, the answer depends on a number of factors including:

  • Your financial situation

Can you afford to pay a large sum upfront to buy a car, or would you prefer to pay in monthly instalments?

  • What type of car do you want to drive?

One of the benefits of leasing a car is that your budget may see you driving a more expensive or premium marque than you would afford otherwise

  • Do you want to own the car?

If you aren't bothered about owning the car, then leasing might be for you.

 

If you would like to know more about whether you should lease or buy a brand-new car, then it's worth spending time speaking with the team at Tilsun Leasing who will be happy to answer any of your questions on 03330 040 888.

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