Buy vs. Lease
by admin on 30/04/10 at 6:56 am
In today’s modern world, knowing how to lease cars and get many benefits from the decision is essentially important. In this part, we are going to discuss the advantages of leasing a car compared to buying one. Shall we get started?
When buying a car, assuming you are buying the car in cash, you need to pay the full amount before you can drive the car. There are other costs involved, but the process is pretty straightforward and can be completed in a matter of hours. Cars are assets that get depreciated over the year, and the depreciation of value is considered as cost. If you purchase a car for £20,000 and the value of the car after three years is £12,000, the overall cost of depreciation is £8,000.
Leasing, on the other hand, offers the same easiness of getting the cars you need and want. The main difference is that you don’t have to spend £20,000 just to get the car. The leasing company will calculate your car’s depreciation costs over the lease period, in this case £8,000 plus other financial costs, and charge them to you on a monthly basis. After paying the initial payment, you can treat the car as your own and only need to cope with monthly payment you surely can afford.
From the example above, you can see that both buying a car and leasing one generally cost the same. The only difference is that you don’t need to have £20,000 to get the car you want. After the lease period is over, you can simply return the car to the leasing company and start a new lease for newer and better model.
You can lease virtually any car you want, from budget city car to luxury car with tons of features. If you want to drive the new Renault Clio, for example, all you have to do is find the best Renault car leasing deal and request a quote. Any car will be affordable since leasing allows you to pay only the depreciation cost plus other financial charges. A Renault Clio Sport Tourer, for instance, costs nothing more than £175 per month for 4-year lease period.
With all the benefits leasing has to offer, you should consider leasing your next car instead of buying them in cash. You can allocate the extra money for something else more useful, including enhancing your investment portfolio and enjoy returns that will cover the cost of lease.
