Need a motor for uni? If so, have you considered leasing one rather than opting for car ownership?
Leasing a car is an increasingly popular choice, and there are a number of benefits compared to owning your own car. Here are some of the reasons you might want to consider leasing, rather than buying, a vehicle…
One of the main reasons why buying a brand-new vehicle doesn’t make sense for a lot people is the sharp depreciation the minute the vehicle leaves the lot. If you’re strapped for cash, as many students are, there is really no benefit in buying a brand new car. You could easily lease one instead and get the same benefits without having to deal with a car that has lost a third of its value or even worse, depending on market conditions and demand.
You’ll get more car for less
The choice of cars you’ll be able to afford will be much wider if you choose leasing over ownership. You could go frugal and choose a small and economical three-door hatch, but if you have some flexibility in your budget, you could select something a bit fancier.
Companies like Vantage Leasing, for instance, have great deals on leasing on everything from Mercedes CLA 200s to Renault Clios. They offer flexible terms and allow you to choose from 24- up to 60-month contracts. They also allow you to choose the amount of your initial payment, but your overall fees be higher if you choose a lower initial payment.
You won’t have to deal with selling it
Another benefit of leasing a vehicle is that you won’t have to worry about selling it when you no longer need it. Depending on the car, you may struggle to find a buyer at the price you’re looking for, or your particular model may have been subject to a recall, which may affect a buyer’s perception of it. And, with a lease, you won’t have to settle for a lowball exchange offer from a dealer – all you’ll have to do is turn the car in and look for your next one.
A temporary solution
As a student, you might just need a picker-upper for the time being, so there’s no reason to invest in a depreciating asset like a car when you know you’ll be able to afford something better once you’ve graduated and embarked on. You can get yourself a lease for the duration of your degree, plus maybe a year, and save your money for when you’ll be able to buy the car you actually want. Or you could decide to enter another lease if you liked the experience and get a better deal from the issuer.
There are a number of reasons why leasing a vehicle can be beneficial, but before you make your decision, we suggest you take an in-depth look into the financials of leasing and weigh up which option would be the best for you.
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