Those top car leasing myths busted

25/05/2021

Those top car leasing myths busted

Despite growing numbers of drivers wanting to lease a car, there are car leasing myths that many still believe.

Here, we take a look at some of the top ones and explain the facts to help people decide whether leasing a car is for them or not.

Car leasing myth 1: it's a waste of money

While you will never own the car with leasing, it's not a waste of money if you want to change cars every few years or drive a better car than you would otherwise afford.

With fixed monthly payments you can get behind the wheel of a brand-new car and enjoy the manufacturer’s warranty and peace of mind motoring.

Also, buying a car could be considered to be a waste of money because it will depreciate - it will lose value as soon as it leaves the showroom.

With leasing, the fixed monthly payment takes into account the depreciation and if it's more, that's the responsibility of the finance firm.

Car leasing myth 2: you need a big deposit

While an initial payment, or deposit, will be required when leasing a car, it doesn't always mean it's a large financial outlay.

Depending on the value of the car, you could pay more as an initial payment to lower your monthly lease cost.

When you buy a car, you will be spending all that money upfront but with most cars losing at least 40% over three years in value, that's a big loss to take.

Car leasing myth 3: excess mileage charges are extortionate

With car leasing, you agree to drive a certain number of miles, and when you go over that figure, then there are excess mileage charges applied.

These charges are not extortionate, and you need to consider that the value of the car has been affected because you have done over the agreed mileage amount.

The best way to avoid excess mileage charges with a car leasing deal is to calculate how many miles you travel every year and add 1,000 or 2000 miles that amount.

However, when you own your car the mileage you rack up is down to you, though again this will affect the car's value when you need to sell it on or trade it in.

Car leasing myth 4: you must buy the car when the lease ends

Firstly, this is about confusion rather than being a myth.

When you lease a car, there's no opportunity of buying it when the agreement ends.

Instead, you simply return the car to the leasing company and decide whether you want to lease a brand-new vehicle.

The confusion will arise because under other car finance deals you will enjoy low repayments for an agreed period but must buy the car at an agreed value.

Under a PCP agreement, for example, this is known as a ‘final balloon payment’.

Car leasing myth 5: leasing is not flexible

Car leasing is a flexible way to drive a brand-new vehicle because you make all of the decisions before signing up to an agreement.

Not only do you pick the make and model of the car you want to lease, you also decide which fuel type you want, and how long you want it for.

With Tilsun Leasing, the agreed terms are two, three or four years.

You also decide what the annual mileage limit will be, and they start at 5,000 miles, and rise incrementally to 30,000 miles every year.

You also get to decide what the initial rental will be, either one month’s payment or up to nine months of your monthly payments.

Also, you can leave a lease agreement early but there will be charges for doing so.

Car leasing myth 6: it's not worth leasing a car

There are lots of reasons why car leasing is worth considering - as growing numbers of drivers are appreciating - so let's explain the benefits:

  • You get to drive a brand-new car
  • You can upgrade to a new car when the contract ends
  • Your monthly payments are fixed for the agreement’s duration
  • You get the full manufacturer's warranty
  • You can drive a luxury car that you may not be able to afford to buy
  • You don't need to worry about the MOT (in the first three years)
  • You could opt for a maintenance package to cover the servicing, tyres and battery
  • You get to enjoy the latest safety equipment and technology
  • You get to choose from a wide range of leases vehicles to lease.

If you would like to know more about car leasing and what the potential costs are, then it's time to speak with the friendly team at Tilsun Leasing on 03330 040 888.

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