Posts Tagged ‘car leasing deals’

Car Leasing – The Benefits and Risks

Wednesday, October 26th, 2011

It seems that there are a lot of people out there that find it a good solution to delve into Car Leasing than actually laying all the cash and buy the car. I think that you might be wondering just why do people act this way and the answer is the fact that the depreciation rate of the car has gone up very much. So considering that you are buying a car, in a period of two – three years, you will witness that the value of your car has gone down with thirty and up to fifty percent. That is really not good news.

More to that, there are also many possibilities and things that you can do in order to benefit from a good deal, so in the end, your decision will only be a cost effective one that will save you lots of money over time. Let us thus talk about Car Leasing Deals in the next few minutes and speak more about the advantages that one has when it comes to having it considered.

This way, you will be aware ahead of time the money that you need to save in order to cope will all of your bills easily. More to that, the maintenance costs and the servicing costs of the leased car are included, so no worries about that either. More to that, there are a few advantages that hop onboard when you lease the car you want, like maintenance costs and other servicing costs.

Of course, many people will not forget about the fact that when you lease a car, you will never have to worry about the fact that its value will depreciate over time. More to that, one of the biggest advantages is that you will not have to worry about the fact that your car’s value will depreciate in time.

When you consider a Contract Car Hire, you will be able to choose any car model that you want, so you don’t have to just drive the same car model forever, until you buy a new one, whereas you could always have it changed every six months or so.

Most of the times, the leasing period is between six and twelve months, but you can always have it extended if you want to.




Lease a car – don’t buy it

Friday, October 7th, 2011

After a house, a car is usually the most expensive single purchase anyone will make. The rules also suggest that it is also the quickest depreciating item and loses value as soon as it is driven off the showroom forecourt. One way of negating the effect of depreciation is to look into car leasing deals instead.

Leasing operates in the same way as Company Contract Hire, only the vehicle is solely for private use. Personal Contract Hire means that you take responsibility for the lease of a car over a specific period, and when the time runs out, you simply return the car to the dealer.

The dealer calculates the value of the car once the contract period has ended, a part of this calculation is that drivers agree to stick to a specific annual mileage; failure to do this will incur certain costs. 

The benefits are that both new and used cars can be hired on a fixed price cost, which tends to be lower than a personal loan. Road tax and maintenance can be included in the agreement and as you will not have to sell the car at the end of the agreement there are no depreciation worries .

Lower costs mean that you might be able to afford a more luxurious car than under a regular purchase agreement.

There is of course the fact that under these agreements you will never own the car yourself. Neither will you have the option to buy it at the end of the lease period. If you do get attached to your vehicles you drive, it might not be ideal to know you will need to give yours away within a couple of years. You will also need to take out a fully comprehensive car insurance for your lease car.