The average cost to buy a used car in the UK is £16,818, according to data from AA cars between January and March of 2023. This is a huge sum of money for even the more affluent household. Taking into account other large costs to hit families in recent months and the rising cost of living, the expense of buying a car is simply just not a feasible option for so many people. This is why car leasing is such a great option that allows families and individuals the opportunity to own a car without requiring a large sum of money to pay for it. In addition to the financial benefits, car leasing rather than buying offers several other benefits, of which we will explore in this latest blog article.
Disadvantages of buying a car outright
To help explain why car leasing is such a useful and beneficial option for so many drivers, let’s firstly consider some of the reasons why buying a car isn’t always a good thing.
Losing the value of the car as soon as it has been purchased. When buying a new car the high value of which you have paid in price will soon diminish the second you put your foot to the accelerator. In most instances (with classic cars being the exception), cars lose their value and you would find it almost impossible to make back the money you spent on the car when you come to sell it.
Being the owner of your car may be a great feeling, however this does also mean that you are now solely responsible for all repairs, taxes, and any other related expenses. Plus, as time goes on, miles tick up, and your car ages, you will only encounter more mechanical problems, leaving you with a car that is certainly past its best.
Finally, once you feel you no longer want your car, you may struggle to move it on. With excessive mileage or some sticky gears you didn't get around to fixing, buyers may be far and few between. On top of this, you will also have to consider the various selling options such as trading your car in (often for less than market value), selling it for parts, or attempting to put it up for sale on huge nationwide marketplaces, where competition is often incredibly fierce.
Is car leasing the solution?
To combat the cons of buying your own car, car leasing comes in as a perfectly suitable solution.
If you are unfamiliar with car leasing and would like to know more about this, we have plenty of car leasing guides and know-hows to help get your head around the process, here.
With car leasing you will sign a contract that enables you to pay for your car across fixed monthly payments, agreeing on this price before you sign. This means you will be aware of the fixed costs associated with your car and be able to budget this into your expenses. Saving you from having to part ways with a large lump sum and instead giving you the opportunity to pay a low upfront payment to secure the make and model you want.
For people who do not have the spare cash to pay outright for a new car, this allows everyone the chance to walk off the forecourt with a car they can afford and one that is also well looked after.
Advantages of car leasing
As we mentioned above there are many other advantages to car leasing than the simplicity of fixed monthly payments.
Unlike when buying a car, leasing a car means you have the freedom to choose a new car every few years! Which is a great option for those who want to keep their car updated and in good condition. You don't have to worry about trying to keep an old banger running, instead you can upgrade to a newer model, according to the terms of your contract.
Plus, unlike disgruntled car owners, you won't have to consider your car becoming more expensive to run and repair the longer you have it. As time goes on you can choose to upgrade, and while you’re leasing you will be provided the support of your finance provider. Repairs and maintenance will usually be covered by your leasing contract which will save you hundreds of pounds in repair costs.
Some factors to consider when leasing your car
While there are many reasons to consider leasing over buying, we always recommend considering every factor before finalising your decision.
Although leasing gives you lots of freedom to enjoy your car and upgrade your model every few years, many leasing contracts will have mileage restrictions, which will impact the cost of your monthly payments. So, before you sign the dotted line, be absolutely sure your mileage allowance is enough to cover you for the year. On average in the UK, most drivers will travel between 5000-6000 miles per year. Meaning for the average driver these mileage restrictions create little to no problem at all. However, if you do go over your mileage allowance you will have to pay an excess charge.
Other things to consider will be your current credit score and how this may affect your chances of leasing. Much like taking out a loan or a mortgage, your finance provider will have to review your credit to ensure you can make the recurring monthly payments.
Personal car leasing with All Car Leasing
Taking the hassle out of buying a car, our complete service package makes getting the keys to your new car as easy as possible. With 20 years in the industry we have the experience and expertise to support you in signing your very first car leasing contract.
We have a wide range of makes and models available on personal car leasing contracts. From Suzuki Swifts to BMW M2s, and even Porsche Taycans! Find a car that suits your personal monthly budget and get in touch with our team today.