Why More People are Opting for Car Leasing and Contract Hire Agreements Today

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Many of us simply love the look and feel of a brand new vehicle – nothing compares to that new car smell indeed! But if you are thinking of getting a new vehicle and replacing your old one, you may also be wondering if car leasing or contract hire deals might be better for you. It’s definitely a more popular option today, and it brings a lot of advantages – including lower payments every month, the avoidance of extra expenses, and not having to worry about or consider the car’s depreciation. But what else can you expect from car leasing, and why are more people opting for car leasing and contract hire agreements today? Here’s what you should know.

Lower payments per month combined with a brand new vehicle of your choice

Simply put, when you choose car leasing over buying a brand new vehicle, you will have lower payments per month combined with a new vehicle of your choice. You don’t have to settle for a used vehicle if you don’t have the budget for a new car – all you have to do is go for car leasing or contract hire, and your monthly payments will still be affordable. Why is this so? The answer is simple. Leasing allows you to just settle the difference between the vehicle’s purchase price with its predicted value at the end of the agreement. You don’t have to deal with interest, and this means you can drive a vehicle that’s more expensive on the same budget per month.

And we must admit, it’s tempting to go for a more luxurious brand new vehicle that you would not usually be able to afford if you were to buy it outright. With a contract hire deal, you can be more expansive with your vehicle choices and you can change your vehicle in just a few years – you’re not stuck with the same vehicle for ten years or more because you can simply choose to upgrade it once the lease ends.


Lower car deposits

Not only do you have lower monthly payments – you can also have a lower vehicle deposit. If you go for a PCP agreement and other similar deals, this would often come with a deposit of around 10 to 20%, which makes your initial payment a bit steep. But with leasing, you can already have your chosen brand new vehicle with as little as a single month’s worth of lease payment. This is one reason why leasing is becoming a more attractive alternative to buying, especially if you don’t have the deposit required for a new vehicle or you would like to save your funds for something else.

A good way to avoid additional expenses

Leasing also provides you with a good way to avoid additional expenses. When you have a new vehicle every few years, thanks to leasing, you can avoid various costs and expenses associated with older models, because new vehicles will experience fewer problems than old ones, and your vehicle will usually be under a warranty as well.

Apart from this, if you go for car leasing with maintenance, your vehicle can be covered for routine maintenance and servicing as well as repairs. Also, you don’t have to deal with MOTs until your vehicle is three years old, so you can avoid this with a lease contract, too.


Hemant Kumar

Hemant Kumar is a project manager at Tridindia with more than nine years of commendable experience in writing about LMS, translation, and IT. His unmatched talent and passion for digital marketing gave him the opportunity to work as a multi-tasking project manager at TridIndia’s sister company, Link Building Corp. Today, he contributes to the world by imparting knowledge on SEO, link building and internet marketing etc., that helps business owners grow their online business.

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