Do you Make a Big Saving by Leasing a Car?

Posted by Graham Briggs in General BusinessJun 18th, 2011 | no responses

Car leasing is a no-strings, convenient way to finance a vehicle if you lack the disposable income to buy straight away, you can of course take a loan out and pay it back over time. The good thing about car leasing is that you are paying the garage directly directly rather than the bank, which means lower interest rates. Leasing is also far more flexible as it means you are only tied in to paying for the year over a fixed period after which you can choose to buy it or return it to the garage.

 

There is currently much debate about the leasing versus buying debate, especially since the cost of motoring is sky rocketing, not necessarily the price of cars, but the cost of running due to current fuel costs. Leasing is getting more and more popular but many are question the viability of such an investment. Firstly, people are beginning to weigh up the two options by comparing the cost of leasing and how to differs to the amount of depreciation upon buying. Say for example you brought a BMW 3 series for twenty thousand pounds, over two years this would likely lose around eight thousand pounds in value, if you leased a BMW Contract hire car, at three hundred pounds month this would work out to around seven thousand two hundred pounds month,

Add on the deposit paid at the start of the contract hire typically about a thousand pounds and they are about equal.

 

While these are rough figures which are dependant on so many other factors, it is clear that there is little to chose between leasing and buying. Leasing has its clear advantages, when the lease period is over you have options, you can return the car, no questions asked, the same is of course true with a car you own but you wouldn’t need to to worry about minor damage to your Audi contract hire car.

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