benefits of car leasing
Benefits of Car Leasing and Contract Hire. What are they?
Lower Monthly Payments - If you obtain a competitive lease quote, because you only pay for the portion of the car you will end up using, your monthly payments are often much lower than for a bank loan for the same car and same term.
More Car, More Often - Because your monthly payments are lower, you are able to afford a better car for the same money and drive a new car every two to four years, depending on the period of your lease.
Fewer Maintenance Headaches - If you take a maintenance package, which are usually offered optionally with car leasing agreements, your costs of repair and servicing your car will be covered. Also, if you renew your car regularly by leasing it and the length of your lease coincides with the manufacturer's warranty coverage, then the cost of repairs will always be covered!
Lower Upfront Cash Outlay - Depending on your credit rating, leases require a smaller up front payment than car loans, which frees up your cash for other things.
No/Lower VAT Charge - In the case of business there is no VAT payable for Contract Hire. For consumers, the VAT is only payable for the portion of the car that you will use during the lease period (ie: 3 years as opposed to the 7 year life of the car) and the tax is spread out and paid along with your monthly lease payment instead of being paid all at once.
No Used-Car Hassles - Leasing removes the headache of selling a used car when you want a new one. When your lease ends, you simply return it to the leasing company and walk away, unless you decide to buy it. Compare Car Finance Prices Right Now.