There are many ways in which leasing a car instead of buying one can give you back the power of choice. When you lease a car, you are given the choice of make and model of the car that you would like to have. Leasing a car gives you a lot of added benefits that add to your power of choice.
Leasing a car can be for personal or business purposes, one of the many options provided to give you the power of choice. These are just two of the various types of car leases that you can choose from. Car leasing also means that you can change the car that you drive without having to buy it while also choosing something new that comes with new benefits.
There are companies that compare car leasing deals for you so that you don’t have to waste time doing it yourself. They still provide you with all of the different types of leases, as well as other choices that are available to you. When you browse car leasing deals with Lease Loco you are sure to get the best deals that you can choose from.
How Car Leasing Works
When you lease a car, you are basically hiring for a period ranging from two to five years, depending on the lease company and your lease contract. You make monthly payments and when the time period is over, you give the car back. You’re only allowed to drive a set number of miles before you get penalized. The obvious difference between leasing a car and buying one is that you have to give the car back when the leasing period is over.
To make sure that you lease the right car for you, there are a few steps that you can follow. Make sure that you understand everything regarding leasing and what it entails. Design the lease deal that suits all of your needs. Including the make and model of the car you want, the lease period, mileage per year, and monthly fees. Work out what your leasing budget is to make sure you can afford the deal. Find the car that you want to lease down to the style, colour, features, trim price, and added features.
The leasing company will have a calculator to help you work out what your monthly payments will be. In addition, you have the option to use online car lease calculator that will compute your monthly payment obligations. Get multiple of these quotes from different companies, and then you can negotiate the best deal possible. Keep and mind everything that you learned about car leasing when you read through the paperwork. Make sure that you understand everything and that it is exactly what you want and agreed upon.
Different Types of Leasing
There are different types of leasing that you can choose from. These are personal contract hire, business contract hire, finance lease, and operating lease. The difference between personal and business contract hire is that one is for private use and the other for business. When your lease is a contract hire type, you make monthly payments for a series of months, and then give the car back. This is the most usual type of leasing.
Finance leasing is for businesses, and at the end of your leasing period you have three options on what to do with the car: give it back, sell it (the payment will be larger in this case), or keep using it (at the same monthly rate). Operating leases are only offered by Mercedes and are not that usual. It is for business use and is the same as contract hire. The difference is that you have to pay the vehicle tax after a year. You can lease an electric or hybrid at selected companies.
Pros and Cons of Leasing a Car
There are advantages and disadvantages to leasing cars, including electric and hybrid vehicles.
Advantages
Due to rising prices in car retail, leasing prices are less high than buying. You can get an expensive car for less money. You can get a new car that is the newest make and model every few years. When your lease agreement ends, there will be no trade-in inconveniences. The car won’t lose its value because you are giving it back. Some manufacturers lease cars at lower prices than they are selling it for. There are no added maintenance or repair costs during your lease period because the car is covered by a warranty.
Disadvantages
You don’t own the car, seeing as you have to give it back when the leasing period is over. When you lease a car, you are restricted by the predetermined number of miles that you are allowed to drive. If you go over this amount, you have to pay additional mileage charges. Leasing a car may free you from maintenance costs, but it doesn’t mean that you shouldn’t still keep the car in good condition.
When you give it back it undergoes a “Wear and Tear” inspection. Should you fail this inspection, you will be charged for the repair costs. You can’t get out of your lease agreement before the set time period is over without being penalized. This means that you have to know without a doubt what your circumstances are going to be for the leasing period.
The Benefits of Leasing an Electric or Hybrid Car
These cars emit less CO2, which makes them more environmentally sustainable. The government is trying to encourage people to lease (or buy) these cars by introducing various incentives. These include subsidies for plug-in cars, subsidies for installing wall boxes at home, charging systems at work, BiK tax reductions, and road tax savings.
These cars are more expensive to buy, but leasing provides you with the best monthly payments available. The service and maintenance of electric cars are a lot less than traditional cars. The parts and components in electric cars are also fewer, making them cheaper.
Conclusion
This article gives a short description of what car leasing is and how it works. There are steps that you can follow to make sure that you lease the right car for your needs and preferences. The different types of car leases are briefly explained. They are personal or business contract hires, finance leases, operating leases, and leases on electric and hybrid cars. The advantages and disadvantages of leasing cars are listed, as well as the benefits of leasing an electric or hybrid car. Ultimately, the different types of car leasing give you back the power of choice.
