Recently personal car leasing has emerged as a popular alternative to traditional car ownership. This shift in behaviour is largely due to the advantages it offers for those seeking a cost effective and convenient way to drive a new vehicle. Personal car leasing, also known as personal contract hire (PCH), provides numerous benefits that appeal to individuals who want flexibility and ease over long term ownership. This article will outline the key advantages of personal car leasing.
Low Initial Costs
One of the biggest benefits of personal car leasing is the relatively low initial cost to get behind the wheel of a new car. When leasing a car, you typically make a small initial payment followed by fixed monthly instalments throughout the lease term. This is in stark contrast to buying a new car, which often requires a significant down payment and possibly a large loan, adding to your financial burden.
Drive A New Car Regularly
Personal car leasing also gives you the opportunity to drive a new car frequently, as leases typically last for two to four years. After the lease has ended you have the option to either return the car and lease a brand-new one, continue leasing your current car or simply stop your personal car leasing journey. This means you can enjoy the latest models, safety features, and technology without the hassle of selling or trading in an old vehicle.
Reduce Your Maintenance Cost
Leasing can also lead to a reduction in your maintenance expenses, as you’re driving a new car that’s covered by the manufacturer’s warranty. Many lease agreements include scheduled maintenance and servicing, further cutting down expenses. This eliminates concerns about expensive repairs often associated with older vehicles.
No Depreciation Worries
A significant drawback of traditional car ownership is the rapid depreciation of the vehicle’s value. However, when you lease a car, depreciation isn’t your concern, you’re only paying for the vehicle’s use during that lease term. At the end of the lease, you can simply return the car and choose a new one, avoiding any worries about its resale value.
Reduced Monthly Payments
Monthly lease payments are often lower than the monthly loan payments for the same vehicle. This can help free up your budget for other expenses or investments, making personal car leasing an attractive financial option for those looking to maintain their monthly cash flow.
Tax Benefits
In some cases, personal car leasing can offer tax advantages. Depending on where you live and how you use the vehicle, you might be able to deduct a portion of your lease payments as a business expense or claim other tax benefits, helping to lower your overall costs.
Flexibility
Personal car leasing provides you with the flexibility to choose your ideal vehicle without the long-term commitment of ownership. It’s a perfect solution for those who want to be able to adapt their vehicle choice to their changing needs or lifestyle, whether it’s opting for a larger family car, a more fuel-efficient model, or a sportier option.
Lower Insurance Premiums
Newer vehicles often come with lower insurance premiums due to their advanced safety features, which in turn can lead to additional savings for lessees.
Summary
Personal car leasing is an attractive choice for individuals seeking an economical and convenient way to drive a new car. Low upfront costs, regular access to new cars, reduced maintenance expenses, and freedom from depreciation worries, mean personal car leasing offers a flexible and cost-effective alternative to traditional car ownership.
To learn about the process of personal car leasing check out Compass Vehicle Services Ltd.
Remember, your perfect car lease is out there waiting for you; it just takes a little patience and research to find it.
