Thanks to the gradual rise in the price of cars combined with the decline in the average wage, more and more people are turning to lease hire in order to get their hands on the things they really need, like vehicles and household appliances. However, should this be the first option we turn to, or is it worth lowering our standards in order to make a considerable saving?

Pros

The obvious advantage to car leasing is that it allows you to have a car without having to save, which is great if, for example, you’ve just got a new job that you need your own transport for, and which has an immediate start. Most car lease agreements include maintenance of the vehicle, which can help you to save hundreds on repairs, services, and MOTs. You will also be given a car which is in its prime rather than having to buy one that’s on its last legs, so you can rest assured that you won’t breakdown on a long journey. 

One of the main disadvantages of buying a car is that they depreciate in value significantly during their lifetime, which can be particularly disappointing if you’ve spent a lot on it in the first place. By leasing a car instead, you not only get to drive the car of your dreams without the price tag, but you also don’t have to suffer the depreciation when it comes to selling it. Buying and selling cars can be a complex and time-consuming process, with the potential to be fooled by dishonest salespeople. In comparison, leasing a car and simply picking it up and dropping it off is a breeze. 

Cons

The most obvious disadvantage of leasing a car is that you have to make monthly payments without fail, which can be significant in value. Unlike buying a car outright, the money you’re putting into the vehicle goes into the pockets of the company you have leased it from, as you do not end up owning the car. Overall, you end up paying more for the car than you would if you bought it. 

Most leases are spread over two to three years, which is a big commitment considering how quickly life can take an unexpected turn and leave you unable to make your payments. Leaving your lease early results in a fine too, but luckily companies like swapalease can give you advice on swapping and taking over a car lease for another vehicle.  There are various conditions you have to meet when leasing a car, such as sticking to a certain mileage per year and keeping it clean and damage-free, which can be difficult to remember. 

There are pros and cons to car leasing, such as the ease and accessibility of leasing alongside the hidden fees and conditions, however, those who are short on cash have little choice. Before deciding on whether or not to lease, make sure you’ve exhausted your other options when it comes to buying, as it is the more financially sound option. For example, could you use public transport and save money in other ways to create the capital you need, and you could aim for a more affordable vehicle or haggle the price down. If you still want more information on whether car leasing is right for you then click here.

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