When you are looking for a new set of wheels, there are lots of things to take into consideration. Should you pay outright? Should you go with a finance option? Leasing a car could be the best and most cost-effective option for you, if you are looking to get your vehicle sorted on a budget. Although you have to hand it back at the end of the lease, it still has lots of other advantages.
How Can it be Cheaper?
This isn’t a definite rule, but it can be the case. The first thing people think of is that after all of the monthly repayments, you are left with nothing, However, it’s important to consider the depreciation in value of this particular asset. As soon as you walk out the showroom, it is worth less. If you calculate the amount between the cost of the vehicle and its value after 3 years, and it is more than what the cost would be to lease over that time period – then you could have lost out.
How can you Tell if it’s Cheaper?
There are lots of things to take into consideration. The model of the car is one factor and how well it retains its value. What is your cars value after a few years-time? Although this will differ from car to car – it’s a good indicator as to whether you would be better off buying or not. It’s also important to take into account the number of miles you will be racking up, the more miles you accumulate – expect this to lower the value of a car. There are some handy websites that will help calculate the value of a car in the second-hand market for you.
Should you get a New Car Every 3 Years?
One of the advantages of leasing a car is that you can change it without it costing you huge sums of money. For example, you can lease a BMW model for relatively low repayments – and if you then want to switch it after a certain period of time you can do so without any considerable cost. Leasing a BMW, which is one of the most popular options of late, can allow you to drive a high-quality car without massive up-front payments.
Will it Affect your Car Insurance?
It’s not uncommon to lease a car these day – so it doesn’t really cause any issues when it comes to insurers. It is likely that a leasing company may request that you have fully-comprehensive insurance which is understandable. A money saving tip is to not let it renew automatically – and to shop around once that time comes.
Depending on your individual circumstances, and what you look for in a car – leasing could be a more cost-effective option for you, and leaves you open to driving a wide range of fantastic cars. Get ready to have a go on a swanky new BMW.