How many people do you know who have taken out a lease on their latest car rather than the traditional route of purchasing from a dealer or through private sale?
The chances are if you lived in the USA a good number of your family, friends and co-workers would have opted for a ‘car leasing’ arrangement, also known as contract hire. Car leasing has been popular for many years in the States and recently has become a phenomenon in the US motoring industry, now accounting for around one in four cars on the road.
Driving towards a UK car leasing revolution
The UK car market has been slower to act but finally it seems that the benefits are getting through and it looks like we are on the brink of an explosion in demand for leased cars. The growth potential is huge – latest estimates reveal that only around one percent of cars are covered by leasing deals in England, Wales, Scotland and Northern Ireland.
As scores of new car leasing/contract hire companies emerge and compete to gain early market share and establish their customer base, the UK public is being presented with an incredible opportunity to drive a great car for a really superb price.
Car leasing: take the road less traveled
The appeal of car leasing is down largely to the fact that through leasing it is possible to get behind the wheel of your dream car without paying out a fortune.
If you love cars but your aspirations are bigger than your budget, it could make perfect sense to take the less conventional route of leasing. With traditional purchasing, you need a large lump sum and as soon as you buy a new car the dreaded depreciation begins. Within a few years the vehicle’s value has plunged, which can make selling it on a real pain. As a result, drivers often stick with the same car for many years, despite longing for an exciting new drive to rev up their life.
With a leased car, depreciation is the contract hire company’s problem – and you can relax behind the wheel with a stress-free, low maintenance experience. There are many additional benefits to car leasing, which are all contributing to building the early market. Here is a round-up of the key reasons why leasing is often better than buying:
- Drive down the payments: The monthly payments with car leasing are usually much lower than with typical car purchase loans
- Stay in the fast lane: Keep up with the latest trends in car design and manufacture by moving to new models much more often
- Appreciation, not depreciation: Cars can often be leased for less than the cost of the depreciation to a new car, so you can enjoy the fact that you don’t own a declining asset
- Throw away disposal costs: At the end of the lease, you just hand the car back, and don’t have to worry about cost and hassle of selling or scrapping
- Take control of your money: With leased cars, no large lump sum cash payments are required so your money is not tied-up in one purchase
- Be free and easy: There is no need to negotiate with mechanics over repairs, deal with maintenance bills or road tax, as these should be the responsibility of the contract hire company.
Internet is accelerating the car lease market
The internet is proving the ideal environment for the car leasing market to flourish. Just like any other competitive market, contract hire companies are always coming up with special offers and last minute deals and the best place to find them fast is the Web.
It’s true that you may also find car leasing bargains in magazines but the key difference is that online, car leasing deals are far more current – and if you are quick off the mark you can pick up a fantastic car before demand outstrips supply or the deal expires.
Finding the best car leasing deal online
To find out more about car leasing and contract hire companies, or if you have any questions, it always pays to deal with the impartial experts.