Owning a car has become almost an essential part of our daily lives. However, the current challenging times when it comes to the economy have made things a lot tougher, hence raising the need for better solutions. One option that is becoming more and more popular is car leasing. Instead of buying a car outright, leasing the vehicle offers you much more benefits than buying the car outright. Below are some major benefits of leasing a car:
Lower monthly payments
Single monthly payments are usually cheaper when compared to accumulating the money to purchase the vehicle right away. This will require you to get a car loan which will inevitably have some added interest to pay. The monthly pay out that is fixed is usually manageable, and one can plan for it easily. Additionally, when you lease a vehicle, you are only required to pay for the difference between the buying price and the predicted value of the car at the completion of the lease which is also known as the residual value. This is a lot cheaper, and it provides you with the flexibility to afford a more expensive vehicle even on the same monthly budget. If you compare it to the vehicle loan payments, the total cost turns out to be much cheaper.
No to minimal deposit
Leasing a car does not require any deposit, or if it happens to have one, it is an extremely low deposit which in turn lowers the monthly pay outs. Even though a deposit is not a requirement, no deposit car leasing is an option that is open to everyone. It relieves you of the stressful process of saving up for the deposit and also assists you to acquire the vehicle a lot sooner.
When a vehicle is leased for business purposes, one can actually reclaim 50% of the VAT deducted on your contract. This is a significant tax saving, and it is also a money-saving instrument.
No worry about depreciation
One of the most expensive parts of motoring is the loss of the value of the car over time. This is the reason individuals look at residual value to calculate its worth at the time you would have the need to sell it. When you lease the vehicle, this risk is transferred to the finance company, and you no longer have to be worried about it. When leasing the car, you know precisely how much you are required to pay, and by the end of the contract, you just return the car.