What are the benefits of car leasing
Leasing an Alfa Romeo Giulietta enables you to drive the latest Alfa Romeo Giulietta without the costs or worry of outright purchase.
For many getting an Alfa Romeo Giulietta contract hire deal is an attractive option.
As John Paul Getty, the billionaire oil tycoon, once said: “If it appreciates, buy it. If it depreciates, lease it.”
The quote sums up the main benefit of car leasing. Unlike a house - which usually gains in value after purchase - when a new car is driven off the forecourt it is already losing value.
A car loan or car finance agreement is simply paying a set amount a month for an item which is losing value. In layman’s terms the car is falling in value not only every time it is driven but even when it is sitting on the drive.
Leasing is a different proposition as instead of owning the vehicle, a monthly amount is paid to use the car over a set period of time - usually two or three years - then at the end of the agreement the car is taken back by the leasing company.
The main advantages are lower monthly repayments than the costs of a car loan while, in the majority of lease agreements, only a small deposit is necessary.
It may also be the case that a car that is out of your price range in terms of purchase price will be within your financial limits under a leasing agreement.
A car manufacturer warranty should usually cover the period of the lease and maintenance costs can be covered. Road tax is also usually included. There’s also the added advantage of being able to drive a brand new car every two to four years allowing you to benefit from the many technical improvements that will be found on newer models.
For most people the main reason for not leasing is a lack of knowledge of the benefits of leasing and the confusion caused by the jargon that surrounds it. Again, while the majority will put in the effort when it comes to assessing the financial implications of buying a house, they will in all likelihood focus on the make and model of the vehicle they would like to drive rather than concentrating on the options for financing the purchase.
While in no way belittling the importance of a buyer choosing the right make and model for him or her - understanding what form of car finance provides the best value for money given their particular personal circumstances is going to have a big impact on the costs of driving that new car.
So it stands to reason that the greater the information a car buyer has at his or her fingertips is going to improve the chance of finding the best deals with the most advantageous terms.