The vehicle leasing process is now a lot easier – all you have to do, basically, is go online, look for the vehicle you prefer and input the make and model or do your search based on your budget, and you are guaranteed to find some of the most excellent contract hire deals around. Prices are a lot more competitive nowadays as well, especially since there are many leasing providers vying for customers. But is vehicle leasing really the best solution for you? What should you know about your other options? Here’s how you can really determine if vehicle leasing can give you the ideal solution you need.
A look at the pros
Contract hire and leasing deals certainly have their merits, and there are some merits that are more apparent than most. One pro of such a deal is that you can have the lowest monthly repayment compared to other deals, and you don’t have to have such a big deposit, either. Compared to the cost of a vehicle purchase, a contract hire deal is cheaper, particularly if you are going for a high-end model.
Another pro is that the deal will often come with the warranty from the manufacturer since you are driving a brand new vehicle, after all. Also, it can cover both road tax and vehicle breakdown, and some deals can come with servicing. But perhaps the biggest benefit that not many realise is that with contract hire or vehicle leasing, you won’t have to be concerned about the depreciation of the vehicle. You are simply using it for a time and will return it once the deal is over, and you don’t have to be concerned about selling it or trading it for something else.
Just like other vehicle deals, contract hire agreements will have their limitations. You have to consider, for example, that you will not own the vehicle during the entire time – you are simply renting it, so you don’t have any right to make major changes to the vehicle. You can, however, request some changes before you acquire the vehicle, but it will often come with additional charges (as expected), and it will be the discretion of the leasing provider. Additionally, you are driving a vehicle with a limit on mileage. Before signing the contract, you have to agree to a set number of miles per year, and if you go over this, then you will have to pay a fee per mile that goes above the limit.
Leasing would be better than purchasing a vehicle if you don’t want to be burdened with trying to sell the vehicle after a number of years. It is also a viable option if you don’t have enough savings for a hefty deposit such as you would need to have if you buy a vehicle. Another reason it may work for you is if you like the thought of having a brand new vehicle from the best manufacturers – a vehicle that you could not otherwise afford if you had to pay its full value yourself. Furthermore, with other options, like a personal loan or a credit card payment, you will still have to settle your debt. Think carefully about your options and don’t forget to compare deals, but in the end, you should be able to acquire the best one you need.