What is Personal Car Leasing?
Ready to drive a great new car without the added costs of maintenance and repairs as often comes with long-term car ownership? Personal car leasing may be for you! Personal car leasing, also known as personal contract hire, is basically a long-term rental of a car. Depending on your needs, personal car leasing may be the most attractive option for you.
Benefits of Personal Car Leasing
If you have a limited budget, a car lease can be an economical alternative to car ownership. The payments for leasing can be as much as 60% lower than payments to buy a car. The low payments allow people to lease the latest cars which might normally strain their budgets.
In addition to the lower monthly payments, a personal lease often requires less of a down payment than buying a car. Less money upfront and lower monthly payments means that there may be a greater selection in the car you could be driving. You can get more car for less money.
Have you ever owned a car that seemed to require a repair almost every month? You may even have anxiety about car ownership due to the financial drain and headaches your problematic car caused. Car leasing is a way to avoid being surprised by unwanted repair bills since repairs on the new car are covered by the manufacturer’s warranty.
To keep repair bills low and continue to save money on monthly payments, drivers can get in a routine of leasing a new car every two to four years. Many drivers enjoy being able to upgrade their cars every two years which is easily done with new and affordable car leases.
How Are Lease Payments Calculated?
With personal car leases, the payments take into account the depreciation of the car during the term of the lease. The vehicle depreciation is the sale price at the entrance of the lease minus the expected value of the car at the end of the lease. The payments often factor in mileage. A car that holds its value longer may be cheaper to lease than a car that depreciates quickly. This allows drivers to lease more prestigious cars than they could afford to buy.
Private Lease Deals
When a person assumes the lease on a car that was financed by someone else, this is called a private lease. Private lease deals are typically handled by an auto assumption company. When people assume leases, they pay on the car with the terms as they were originally calculated for the car.
The driver assuming a lease cannot renegotiate the terms. This means that the private lease deals are the same monthly payments as it would cost the drivers to lease the car at the beginning of the term as it does in the middle of it. Let’s face it. When we lease a new car, we want the thrill and excitement of driving that car while it’s brand new, not after someone else has been driving it for months.
Is Leasing Right for You?
If you still have questions about personal car leases, please contact us to discuss your motoring needs. We would be happy to help you explore your options for a new car. you should probably also look into salary sacrifice car scheme and check with your employer.
Browse our personal car lease deals now.