Leasing has become an increasingly popular way to bag yourself a brand new car through fixed low monthly payments. There are many benefits to leasing, as well as disadvantages that come with any form of paying for a car. We’ve highlighted these in this guide to help you decide if leasing is for you.
Top 8 Benefits Of Car Leasing
- Brand new car every few years
- Low fixed monthly costs
- Road tax, manufacturer’s warranty & breakdown cover included
- Never have to sell your car again
- No depreciation worries
- Simple process
- No deposit options
- Flexibility
Advantages And Disadvantages Of Car Leasing
So, what are the good and bad things about car leasing? We have listed the top advantages and disadvantages to consider if you’re contemplating whether to lease your next car or not.
Advantages Of Car Leasing
Drive a brand new car
One of the benefits of leasing a car is that it gives many the opportunity to drive a brand new set of wheels for a lot less than they would expect! Rather than buying and owning a car, you can lease one and change your car every few years. This means that you keep up to date with the latest model releases and experience the newest technology.
Simplicity
Leasing a car these days could not be easier. You don’t own the car so you never have to worry about the hassle of selling it. You simply hand it back and can organise another lease car to be delivered straight to your door for free through LeaseLoco’s leasing partners. There are also more and more manufacturers providing free breakdown cover for the warranty period of the car, meaning even more peace of mind for you.
Cost
Throughout a contract, a car lease is typically cheaper than a PCP deal. This is because PCP deals typically have a bit more flexibility and the option to own the car following a balloon payment. Although, many people will take out a PCP deal, and still hand it back as opposed to paying the balloon payment. To avoid overspending, it is a good idea to consider the cost savings through the cheaper monthly payments with leasing.
We would say that cost is the #1 reason to choose leasing over buying, and we show a great example of this on our Why Lease page.
Disadvantages Of Car Leasing
Never own the car
If you think about leasing a car, like renting a house, you will never own it. With other car finance options such as PCP or HP, you have the option to own the car at the end of the term. You won’t get this option with leasing, which is why the payments are so low!
Mileage limits
When you take out a lease deal, you will need to choose a mileage amount that you predict you will do over the term. For many people, this isn’t too hard if they can easily predict their mileage. However, this may be a drawback for others who do not want to be limited by a mileage amount throughout their lease and are worried about facing an excess mileage charge if they go over.
Cannot modify car
As you are leasing the car, you cannot make any permanent changes to it. You can make changes such as adding a private number plate or tow bar, so long as these can be removed before returning the car. It’s also worth noting that if you do make any temporary modifications to the car, these will need to be reported to your insurance company to ensure your entire vehicle is covered.
Leasing With LeaseLoco
LeaseLoco makes it super quick and easy to search through the hottest car and van leasing deals on the market. We want to give you every confidence that you are working with the very best brokers and car dealers, which is why all of our leasing partners have signed our Ethical Code of Conduct and we have the highest advertiser partner criteria in the industry.
Plus, all of our available deals include…
- FREE delivery to your door (mainland UK, some locations may incur an additional charge)
- Manufacturer's warranty
- Breakdown cover
- Road tax
If you’ve read the benefits of car leasing here in this guide and think that leasing a car is the best option for you then check out the hottest deals available to find one that suits you best.
FAQS
What are the advantages of car leasing?
Leasing your car allows you to drive a brand new car every few years at a low monthly cost that is fixed for the duration of your contract. As you’re leasing the car, there are no depreciation worries and no hassle of having to sell your car!
What are the disadvantages of leasing?
You will never own your car when leasing, which is quite important to many people. There is also less flexibility as there are mileage allowances and limitations to modifying the car. It also requires good credit to take out a lease deal and you will need to pass a credit check.
Can I pay a lease off early?
If your circumstances have changed, it is possible to end your lease deal early. However, there will be an early exit fee for doing so. We would always recommend checking exactly what this fee would be with our leasing partners if this is something you may need to do.
What happens when you return a leased car?
At the end of your lease term, all you need to do is hand your car back to the leasing company (who usually will collect it for free). They will check your mileage and inspect the car for any damage beyond fair wear and tear. If you plan ahead, you could potentially get your new car lease delivered at the same time as your old one is being picked up!