Why UK Drivers are Turning to Car Leasing Providers
As we write this, more and more of us around the UK are spending time scrutinising are spending and budgeting habits. This is both natural and understandable given the state of the economy and the large price rises that have occurred everywhere from the supermarkets to the petrol forecourts.
One thing that has certainly caught the eye in the last couple of years has been the steady rise in the number of UK drivers making use of car leasing services. While this is something that has been common practice in many countries around the world for decades, there are still some Brits who are unsure how it works.
Let’s take a closer look while also touching on the reasons UK drivers are turning to this alternative approach in their droves.
Car leasing delivers lower monthly payments
The most attractive difference to many reading this will be the fact that leasing a car costs you less money each month.
Leasing agreements are structured like many financial services in that they come with a fixed monthly charge, but it is lower than other vehicle ownership methods in the UK.
In fact, one of the reasons for this is that you don’t actually own the vehicle at any stage.
Not owning the car provides flexibility
You may think that you want to own your car outright at the end of the leasing agreement, especially considering how much you have spent on the monthly payments. But is that actually the case? Perhaps you are better off being able to give it back free of charge and getting a brand-new car?
House prices and land prices generally go up when you consider a long enough period of time, and that means you want to own them when you can. Cars and vans are different because they typically lose at least half of their value within 3 years.
This is not good news if you have spent 5 years paying off a finance agreement only to be left owning a car that’s hard to sell. Leasing allows you to hand it back when you’re done with it and get a brand-new vehicle with a clean slate.
Subscription models simplify things further
If you contact some of the car leasing specialists based in the UK Manchester that you will find online, you will be able to ask them everything you want to know about subscription models.
They are basically leasing agreements where you have a brand-new vehicle for as little as 6-12 months for a fixed monthly payment. You can then set up a time at which you will automatically get upgraded to the next model in the series.
This is a great way of reducing maintenance costs which leads us nicely onto our next point.
Leasing cuts your maintenance costs
A brand-new vehicle or a low-mileage vehicle will have only a fraction of the wear and tear on it that a heavily used car has. There is no getting away from this fact and it’s the number one reason why leasing your next vehicle can dramatically reduce your maintenance costs.
Because the vehicle is owned by the leasing company, it will either be brand-new or in perfect condition if it has been used before when you get it. This means that you are driving an optimally maintained vehicle that will be able to stand up to the many lumps and bumps that the roads in the UK will try to dish out.
Ideal when you want to greatly reduce the number of stressful instances of having to rearrange lifts, deliveries, and social events because your car is in for an unscheduled repair.
Drivers who lease are less stressed
When you start to factor in all of the plus points above, it becomes apparent that UK drivers who choose to switch to a leasing model will in general be less stressed. Common causes of stress for drivers include:
- An unreliable vehicle that is proving increasingly costly and time-consuming to have repaired at the local garage
- A low-value vehicle that is hard to sell, making it virtually impossible to fund the purchase of a newer vehicle
- A vehicle with outdated engine and transmission technology that is less fuel-efficient and costs you more in frequent visits to the pump
Leasing a new vehicle means you have optimal reliability, are never stuck with a low-value vehicle at the end of the agreement, and always have the best MPG. With this in mind, it’s safe to say that there are plenty of reasons why UK drivers are switching to car leasing.
