Car Leasing – What Is All the Hype About?
Actually buying a car outright and owning it fully is an idea that is slowly becoming less and less common amongst most people. With rising costs of purchasing cars, and how much they drop in value as soon as you drive them off the forecourt is often impossible for people to afford. With many large manufacturers like BMW, Mercedes and Audi ever improving the cars, the price creeps up every year, so much so, that even second hand theay can go for ridiculous prices.
Money to one side, even if you look at buying a car purely on the car itself and not the cost of it, many people are beginning to see it’s not always the best option. The feeling of driving a new car, leaving the garage in the latest model, is a great feeling to have. Therefore,why would you buy a car, be stuck with it for years and then when the time does come to upgrade, you have to spend months trying to sell it, and only for a fraction of what you paid.
Financing is a concept that has been around for a while and a very popular choice with many. Financing allows you to put a deposit down on a car (how big the deposit depends on the value of the car and how much you would like to spend each month). From then you pay a monthly cost (this is agreed with the dealer on how much you pay and for how many years), after the contract term is up you either pay a balloon payment and own the car at the end of it, or you hand the car back and start a new finance deal.
Personal car Leasing takes a similar approach to finance where you pay a monthly fee towards the use of the car. However, leasing is quite often a much cheaper often for you. It tends to work out cheaper as your monthly fee is determined not on the cost of the car but instead the value it loses whilst it is out on the road with you, which is obviously going to be less. Similarly, you decide a lease term with the dealer and when this is up you return the car. Certain things like mileage and wear and tear may add a few extra costs, but in the end, this option is the cheapest.
The real bonus to finance and leasing is that you can leave the dealer with a much nicer car than you could if you bought one fully, and you get to do this every 2-4 years.