words Alan Woods
Are you considering renting your next car rather than buying? We can understand why – there are tonnes of benefits to leasing your next vehicle over opting for a finance deal.
It’s a big decision no matter what position you’re in though, so here are a few reasons why car leasing should be your next financial move…
Brand new without the price-tag
The first and most obvious benefit for many people is that they get a new car that would normally be completely out of their price range for a very affordable rate – you could go from Audi renting, to a BMW, to Mercedes leasing! This is particularly good if you love cars and want to change your own regularly for the latest model. There’s also usually little to no down-payment required when renting a car, whereas you’d need a sizeable deposit when buying one. Worth considering if you are trying to ask yourself is it better to buy or lease a car?
Decreasing monthly payments
Rental contracts take the depreciation value of a car into account, which means that, over time, the monthly payments you make will decrease, freeing up more of your income each month. This isn’t the case when financing a car – you could lose thousands off the original price of the vehicle, but you’d still be lumbered with the same figure for your instalments.
No worries about re-sale
Similarly, the depreciation value you suffer will vary depending on the model of car you choose, but ultimately you will have to worry about re-sale somewhere down the line. Some new cars can lose 19% of their value, but when you rent a car, you can change the vehicle to suit your budget and lifestyle whenever you please, with very little effort.
Great for those starting out
Renting a car is a particularly good option for new drivers. As there’s rarely a down-payment required, it can be a much more affordable option for them when they have a low income with little, if any, savings put aside. The main benefit for them though is that they can try different cars to find one that suits their needs the best for whatever price range they’re in.
Perfect for professionals
Do you have an important meeting to go to with a client? Are you ashamed of your current shabby-looking vehicle? Although we don’t like to admit it, appearance matters, and customers will judge you on the way you dress and the car you drive. It’s all part of the lease vs buy analysis. Not necessarily how expensive it is, but how clean-cut, professional and reliable you appear. The ability to rent a new car at the drop of a hat is always a positive for entrepreneurs.
Better for your safety?
Car manufacturers have come on leaps and bounds in the realms of safety, and it’s true that the newer the car, the better the features. There are much stricter rules in place and more rigorous testing processes behind newer cars, and when you rent, you’ll be able to go for one that’s stylish as well as secure.
Would you prefer to rent or buy? Leave your thoughts in the comments box…