If you’ve been wondering whether car leasing is a good decision for you, consider this: with a car lease, you don’t have to come up with a large deposit just to get the car you want. Car lease deals often require a deposit, but the deposit is virtually nothing compared to when you are buying a car. Deposits only range from between three times the monthly payment to nine times the monthly payment, which is still lower compared to the deposit when you purchase a vehicle outright.
Additionally, car lease deals allow you to choose a car you would never even have dreamed of driving if you were actually to buy it – you can cruise the roads in a shiny Mercedes Benz, for example, or drive around in a Porsche – the choice is up to you, and all for a reasonable payment per month. But of course, it’s natural to have certain questions about car leasing to be sure that you are getting the proper deal. Here, your top questions about car leasing are answered.
How does it work?
If you have just recently considered car leasing, you may have some questions about how it works. Leasing is essentially renting a vehicle for a specific period, often 24, 36 or 48 months. It’s not the same as buying a car, because you don’t own the car – you are merely ‘borrowing’ it for a particular time. At the end of the lease, the car is still not yours; you have to return it to the leasing company.
With leasing, you will have an initial deposit or payment, which often amounts to 3 to 9 months of the total monthly cost of the vehicle. So if you see a deal which says ‘3 +24’, this means you have to pay an initial deposit of 3 times the monthly payment plus sign a deal which lasts for 24 months.
How is it different from purchasing a car, and what are its benefits?
Here’s an example to make everything clearer: if you buy a car worth about £18,000, you not only pay £18,000 but after about three years, the car will likely depreciate to only £9000 in value. Then you have to worry about selling it if you no longer want to drive an older car, and your initial investment of £18,000 will have dwindled to only £9000 (which means you have essentially lost £9000 after three years). But if you lease a car worth £18,000, you only need to pay about £250 per month for three years to use it, and at the end of the three years, you don’t have to deal with a depreciated car. You can actually save £9000, and you can spend the £9000 you save on a new car if you so choose.
The benefits of leasing a car are plentiful. For one, you can enjoy driving a new car around every two or three years, and you can include the cost of maintenance in your car lease deal. For another, you don’t have to be responsible for selling the car once it gets old – you merely give it back to the leasing company. You can also choose between different personal car lease deals or business car lease deals such as those available from https://www.genusleasing.com depending on your needs and purpose for leasing.
How does the process work?
Car leasing is simpler than you may think. This is another benefit to car leasing – it’s not as complex as buying a car, where you may have to apply for a loan if you don’t have enough funds. You simply choose the vehicle you want, provide the leasing company with your financial information and other details, and once the leasing firm confirms your details, they will deliver the car to you, and you can then drive it and enjoy it. At the end of the deal, you return the vehicle to the leasing company. It’s really that simple.
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