Personal Car Leasing – The Benefits
Leasing a car can be a very attractive alternative to buying, although it’s not for everyone. Your choice depends on a how important certain benefits are to you.. To help you make that choice, we have listed below the benefits of Car Leasing compared to conventional Car Finance Options.
Car Leasing means Lower Monthly Payments
Because you only pay for the portion of the car that you actually use, your monthly car lease payments are significantly lower than Loan Repayments for the same duration.
Car Leasing means More Car, More Often
With lower monthly payments, you get more car for your money. Plus, you can change your car every 2,3 or 4 years depending on the duration of your Car Lease.
Car Leasing means Lower Initial Cash Outlay
The initial payment on a Lease car can be as little as one Monthly Payment (subject to terms). This makes acquiring a car more affordable and frees up your cash for other things.
No Used Car Disposal Worries
With Car Leasing the need to dispose of your used car is eliminated. At the end of the lease you simply return your car to the Car Leasing Company without any further Financial Commitment, unless you decide to buy it of course.
No Depreciation Worries
The biggest single cost of owning a car is depreciation – the difference between the purchase price and the value when you come to sell.
Recent years have seen a major fall in used car values and many car owners have been shocked at how little their cars are worth. With a Car Lease, depreciation is the responsibility of the Car Leasing Company.
Guaranteed Future Value (GFV)
The Car Leasing Company estimates how much your car will be worth at the end of the Lease and this figure is written into your Car Lease Agreement as the Guaranteed Future Value (GFV).
This gives you three options at the end of the Lease
Pay the GFV to purchase the car outright
If the car is worth more than the GFV, dispose of it and retain the surplus or use it as an initial payment for your next car
If the car is worth less than GFV simply return it to the Car Leasing Company without any further financial commitment
Fixed Cost Motoring
Your monthly payment is set for the duration of the Lease. If you include our Full Maintenance Option and factor in fuel and insurance, you’ll know your motoring costs for years ahead, which is impossible with any other finance agreement.
Lower Capital Costs
Because a Car Leasing Company buys hundreds or even thousands of cars every year, the prices we pay are always significantly lower. However, regardless of the purchase price, the car’s future value in 2, 3 or 4 years will be the same. Consequently a leased car will incur less depreciation, which in turn will be reflected in a lower monthly payment.