Reasons why you should consider leasing instead of buying

Leasing is increasingly becoming popular especially with companies and individuals looking for flexibility and hassle free deals. One of the reasons for this is being when you consider admin, price, resale and maintenance cost, leasing can be more flexible, cheaper and quicker than buying your own vehicles. You’ll only be required to pay a fixed amount every month, making it easier for you to budget while giving you more financial certainty. If you encounter any problems, our experienced team will be on hand to get you sorted out, saving you time and money. With Letiway, your leasing contract is not only flexible, but tailored around your needs.

The Benefits of Car Leasing with Letiway:
If you are looking for a new or used car, why not consider leasing? As mentioned, leasing has become one of the most popular ways to drive the car you want, with flexibility and freedom. If you are not yet convinced, read on to learn more about the benefits that come with car leasing for both business or personal use.

1. Low monthly payments
With leasing, you only pay for the difference between the purchase price and the residual value (the predicted value of the car at the end of the lease). Unlike a Personal Contract Purchase (PCP), there is no interest included, and unlike buying, you are not paying for the whole thing. This means you could be able to afford to drive a more expensive vehicle on the same monthly budget. In fact, comparing leasing to loan repayments on the same vehicle, your monthly payments could be halved.

2. A brand-new car of your choice
Getting to drive the latest car is a luxury many motorists can’t afford, because it simply is not affordable. But with leasing, you can have a brand-new vehicle every few years and get access to regular upgrades. Technology in cars is improving more quickly now than ever before. There are new safety features, greater fuel efficiencies and improvements to in-car entertainment systems being introduced all the time, meaning in just a couple of years, your car can feel dated. Buying a car can typically mean driving it for a decade or more. However, leasing gives you the opportunity to have the newest model every two to four years, complete with your choice of extras like additional tech, driver aids and your pick of paintwork. If you’re the sort of person who gets bored with their car easily, leasing can often work out the easiest and cheapest way to change vehicles often.

3. Lower deposit
Many PCP deals and similar finance products require a 10-20% deposit, making the initial payment particularly painful for your wallet. With a lease, you can drive away a brand-new vehicle from as little as one monthly rental payment as your initial charge. This makes leasing perfect for a range of circumstances. For example, a lower deposit is handy if you’ve just started a new job and have a steady income, but don’t have a large lump sum to put down for a new vehicle. 

4. Avoid extra costs
Regularly updating your vehicle to the latest model isn’t just a way to impress your neighbors. You can avoid the costs associated with driving an older car too. Newer cars tend to experience less problems, but with leasing, any issues would usually be covered under the warranty. Plus, if you lease a car with maintenance, we will cover your car for routine servicing, repairs and even premium tyres. Leasing Options also provides glass protection and breakdown cover, with access to a 48-hour relief vehicle if your car can no longer be driven. MOTs are not required until a vehicle have been on the road for 3 years, so many lease contracts will avoid that expense too. One final thing you don’t have to worry about is Vehicle Excise Duty (road tax). This is always included within your contract, so you won’t have to fork out extra each year for that either.

5. Simple process
Getting yourself behind the wheel of your next vehicle shouldn’t be stressful. That is why we have a simple leasing process which makes it easy for you to start enjoying your new car:

  • Choose your car
  • Get a quote
  • Apply for finance (If you need one)
  • Sign your contract
  • Decide on a pick-up date
  • Car leasing could not be easier, and our contracts can be arranged in as little as 10 days, so you do not need to wait around either. If you want to know more about the process, read our guide to car leasing here.
  • Handing over keys

6. Fixed price
Getting a new car is likely to be one of the biggest investments of your life, which is why being able to make affordable, fixed payments is one of the best benefits of leasing a car. With a lease, everything you pay is agreed up front. There are no grey areas on annual mileage or equity. Other finance products, such as PCP, include the promise of equity at the end your contract, which may or may not materialise. We will tell you exactly how much you need to pay each month at the earliest opportunity. Your monthly costs will not change throughout the duration of your contract. This should make budgeting much easier, as you’ll be able to manage your outgoings from the very start.

7. Don’t worry about depreciation
Often the costliest part of motoring can be the loss of value your vehicle experiences over time, otherwise known as depreciation. When buying a new car, it makes sense to look at residual values to try and work out how much it might be worth when you come to sell it. Of course, no one can truly predict this figure. There is no way of knowing without possession of a crystal ball! But with leasing, the risk associated with this unknown is taken on by the finance company. As your payments are fixed, you know exactly what you have to pay, and at the end of your contract, you simply return the vehicle.

8. Insurance included
Every car requires insurance, and that is no different with leasing. With our Just Fuel It package, you will be fully insured. The Just Fuel It package is completely comprehensive, including coverage for: Fire, Theft, Vandalism, Third party liability, Your family or spouse, Shortfall protection. It is also recommended that you take out Guaranteed Asset Protection (GAP insurance), which offers complete protection in case your car is written off – we can provide this for you.

9. Tax relief for businesses
Not all businesses can afford to invest in a new car or a fleet. In particular, SMEs may find it difficult to find the resources to fund a new vehicle. However, with car leasing, you can take advantage of a range of tax breaks if you are a business owner, from mileage rebates to low emission savings. With business leasing, you can reclaim up to 100% of the VAT on your contract. VAT claims are also allowed against maintenance costs and any excess mileage incurred during the lease period. Be sure to discuss this with your accountant if you think you may be applicable to this cost saving.

10. Hassle-free returns
One of the biggest downsides of buying a car is recouping the money when you try to sell it later. But with leasing, you can enjoy a brand-new vehicle of your choice every few years without needing to think about selling it for a good price.

Once your contract ends, you can simply return the vehicle without any extra hassle. The vehicle will undergo a standard maintenance check to ensure you have not exceeded the Fair Wear and Tear guidelines or surpassed your agreed mileage limit. Afterwards, it is entirely up to you what happens next. Of course, you can always choose another new car and enjoy the benefits of leasing all over again.

Key considerations
Before you take out a lease contract, it is also important to consider that:

  • If you settle the contract early, you will be required to pay a termination fee;
  • If you exceed your agreed annual mileage allowance, you will be required to pay an excess mileage fee;
  • At the end of your contract, you will be required to pay for any damage to the vehicle, with the exception of Fair Wear and Tear.
  • With a plethora of different options available, like PCP, PCH, bank loans and hire purchase, trying to find the best way to pay for your vehicle can be confusing. The general consensus is that buying is always better in the long run, but in some cases, it can make more sense to lease things. Billionaire oil tycoon Paul Getty once said, ‘if it appreciates, buy it. If it depreciates, lease it.’

If you’re ready to start leasing, find the best deal on your next car today at Letiway,  we guarantee you won’t find better value anywhere else.

Subscribe to our newsletter!