When driving around the UK’s streets, you may be surprised by the number of new registration plates you see. Whether you are in your old car and hoping it sneaks through its MOT or wondering whether to update to a new model, help may be at hand.
New car sales are on an upward trend over the past few years, and the impact of new private buyers rather than firms has been noted by the Society of Motor Manufacturers and Traders. What is starting to decline rather rapidly is the used car market.
Leasing options are proving increasingly popular in the UK, following their success in the USA. Company fleets led the way, but more private buyers are taking advantage of the benefits of leasing rather than taking out traditional financing. Leasing has become the go-to option for many people when it comes to thinking about a new car.
Wherever you are based, options will be available to you as a private leaser. For example, someone interested in Car Leasing Gloucestershire way should look at contacting specialists such as mphvehiclesolutions.co.uk
When buying outright, prices can vary dramatically. Different specs on otherwise identical models can add thousands to the price and confuse the situation. The option of leasing can be much more transparent.
The idea is that your payments cover the cost to the lease operator of the car’s depreciation over the rental period plus their margin for profit. Upmarket marques tend to retain their value, and hence their leasing costs can be very attractive. Other issues affect depreciation such as fuel consumption and road tax.
Mileage will also impact on depreciation. This needs to be checked before you enter into a leasing agreement. If you are a low-mileage driver, then leasing may offer great opportunities.
Making a bigger down payment on your lease can reduce your monthly payments during the period of the lease.
At the end of the day you are paying for the depreciation of the vehicle but are left with the option of renewing your deal with a new car.
Another plus of leasing is the benefit of factory warranty cover, so you will not need to worry about repairs. As extended lease periods become more popular, the benefits are clear.
The traditional way of financing a new car on credit may not match the leasing option. Once you have done the maths, make the choice.