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The Top Benefits of Car Leasing

The Top Benefits of Car Leasing

Cars have become an almost essential part of our lifestyle. However, today's tough economic times have made things even more difficult, increasing the need for better solutions. One of the more popular options is car rental. Instead of buying a car directly, renting a car provides more benefits than buying a car in person! For those who haven't realized it, we outline some of the main benefits of car rental:

Lower monthly payments

A single monthly payment is always cheaper than raising money to buy a car outright. This may require a car loan which will definitely add interest to be paid as well. Fixed monthly payments are often manageable and one can easily plan for them. Again, when you rent a car, you are only required to pay the difference between the purchase price and the predicted value of the car at the end of the rental period which is also called the residual value. This turns out to be a lot cheaper and gives you the flexibility to buy a more expensive car even on the same monthly budget. If you compare it to car loan payments, the total cost will be cheaper.

Not for nominal deposits

Renting a car does not require a deposit or a very small deposit which in turn lowers the monthly payment. Although it is not a necessity, but leasing a savings car is not an open choice for all. This not only frees you from the harsh process of saving money, but also helps you get your car faster.

No hassles over bad credit

Bad credit is often a big hurdle when trying to get a loan. But this is not a requirement or a problem when renting a car. So even a person with a bad credit score can easily find a car for rent.

No need to worry about depreciation

One of the most expensive automotive parts is the loss of value of the vehicle over time. This is the reason people look at their salvage value to calculate their value when you try to sell them. When you rent a car, this risk is transferred to the finance company and you don't have to worry about it anymore. When you rent it, you know exactly how much you have to pay and at the end of the contract, all you have to do is return the vehicle.

Regular upgrades

The technology in the car changes as fast as a person changes clothes. New safety features, better fuel efficiency and improvements to the car entertainment system are coming so fast that even within a few years, your car can feel out of date. When you buy a car, it implies that you stuck with it for at least a decade or suffered financial losses while upgrading. However, with leasing, you can actually get the newest model for you every two to four years. So unlike buying a car, leasing is the cheapest and easiest way to get the newest vehicle for yourself.

Avoid additional costs

Every time you upgrade your vehicle to the newest model, it's more than just impressing your neighbors. You also avoid all the costs incurred reasonably by driving an older car which can be as simple as higher fuel costs. New cars tend to have fewer problems and if any do arise, they are usually covered under warranty. Again since MOT is not mandatory for vehicles that have been on the road for less than 3 years, the least contracted tend to avoid that cost as well. Another added advantage is that you don't have to worry about vehicle import duties. Often these are included in the contract and are not required to pay anything extra.

VAT claim back

When the car is rented for business, someone can actually get back 50% of the VAT deducted on your contract. This can be a major tax-saving and money-saving instrument.