Car leasing has many benefits over car purchase.
Most people make decisions on acquiring a car based on information from trusted family, friends or colleagues. Unfortunately, they often don't know the best deal financially, and only advise on what they have done previously themselves. So from a financial viewpoint, it is worth bearing in mind the famous quote of billionaire oil tycoon J. Paul Getty - “If it appreciates, buy it. If it depreciates, lease it”.
This quote, in a nutshell, encapsulates the main benefit of car leasing, furthermore, it is advice from someone who knows more than most about how to spend and save money.
If you have ever wondered why so many people seem to be driving round in a vehicle you didn't think they could afford - or drive a company car that seemes above their status - it is probably because they use car leasing rather than car purchase - it just makes financial sense.
Car leasing may save you money.
Unlike a house, or possibly a 'classic car', which usually appreciate in value after purchase, when you drive away in your brand new car it is already losing value - it is depreciating. When you purchase a car the amount it costs you is the purchase price less the sale price. If you pay cash for the car then you also have to factor in any interest you may have received by investing the money over the period you have the car.
If you take out a car loan or car finance agreement to purchase a car you may also be paying interest on the amount of your 'borrowed money'.
Your want your car to say that you have great taste and you are successful because you are driving what you like; Moreover, you want your car to be what your friend, colleague or customer would like to drive - and if they are your friend then it will make them feel like they could also drive such a car - thats what you want.
Drive the car of your dreams and make everyone envious - go on , you know you want to - and people will respect you more and buy you more drinks and want to do business with you - lol.
The best car leasing deals will have monthly repayments between 35% and 55% less costly than the repayments on a car loan. An initial rental is required, although these are not paid until one month after the car has been delivered - these should be factored in with the total repayment cost. initial rentals are normally based on the monthly amount, and vary between 3, 6 and 9 times the monthly amount.One of the biggest attractions of car leasing is that you are able to drive away in a car that might be out of your price range in terms of purchase price.
For example if your budget is £275.00 / per month, you may be able to drive away in a Mercedes rather than a Scoda.
The wider economy, and a car’s residual value, are other crucial factors to be aware of which can affect the contract leasing deals available. The models which depreciate the slowest (i.e. will lose as little value as possible over the term of a lease agreement) will be the most attractive in the market. Historically this has lead German carmakers, to be very popular, in particular, Mercedes Benz retain their value possibly more than any most.
A handful of very large leasing companies supply most of the contract hire and leasing market in the UK with cars, these companies purchase hundreds of thousands of cars from the manufacturers each and every year so they can negotiate large discounts. The lease price of a car is made up of the difference between the initial purchase price and the car’s estimated residual value (future value) at the end of the lease agreement, with mileage and condition also taken into account, as well as VAT and a profit element. So, if a car loses less money and has a lower mileage, it's residual value will be higher and therefore will cost less to lease.
Fixed price motoring is easy to manage with car leasing. The car manufacturer warranty will normally cover the period of the lease and maintenance costs can be optionally covered. Road tax is also usually included in the lease.There are no huge up-front costs or capital outlay or car loans - only a relatively low deposit.
The more information and knowledge you have on a subject, the more likely you will be to find the best deals and to negotiate better terms of any agreement. Using an established broker such as Anthony K Associates will ensure that all your questions are correctly answered.
Anthony K have access to the best deals in the UK and whether you are after personal car leasing or business car leasing they are one of the best car brokers to deal with.
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