Should you lease your family car?

Should you lease your family car?

If you’re in the market for a new car, chances are you’re thinking of how to finance it. Today we’re going to be discussing whether you should lease your family car or not. Leasing is one of three methods that you can use to fund your purchase. You can either lease it or rent it or buy it. What’s the best option for you? Let’s take a look at all the methods and then see the benefits of leasing a new car. Together, we’ll come up with a solution.

Whenever you lease a car, you pay to use it for a set period of time. Typically, this is 36 or 48 months. There are limitations to the amount of distance you can travel and the modifications you can make to it. There will be various costs associated with leasing as well. When your lease time expires, you have the choice of returning the car to the dealership or purchasing it for a set price, as specified in the lease agreement. When you buy an automobile, you instantly obtain ownership of it. If you make payments in cash or when a debt has been settled, you own it entirely. You retain complete control over the car and can eventually keep, swap it in, resell it, or dispose of it, it’s all up to you.

Leasing has picked up as a popular means of financing, in the UK and around the world. Most of it has to do with the ease and freedom it provides you with and the car lease deals available. Apart from that, let’s look at some other benefits that leasing opens up for you.

silhouette of man and child near white hyundai tucson suv during golden hour
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Should you lease your family car?

1.     Less monthly expenditure

Car lease payments can be thought of as a monthly borrowing fee that you pay as the lessee to the car dealership. This payment is less than renting the vehicle or paying for ride-hailing apps or facilities, making it an attractive offer to most prospective buyers. For example, given the chance to lease an amazing electric vehicle like the Kia EV6, which not only gives you one of the latest EVs on the road but in the least amount of cost? It’s literally a no-brainer.  

2.     Brand  new ride

If you go to a good dealership with a great reputation, chances are that you’ll either get a brand-new car or a car that’s as close to new as can be. Which is amazing, you get the benefit of knowing it’ll have zero maintenance issues and that you’ll be the talk of the town with the latest and greatest car your friends and family have ever seen.

3.     Buyback option

Once your lease agreement is over, you actually have the option of buying the car, if you’d want it. The price will be substantially lower too, now that you’ve been paying for the lease. So, you can opt for that or move on to another new car and go through the same process again. If you’re someone who likes experiencing new and different things then it’s definitely worth it to keep leasing a new car and when your agreement ends, you can choose a newer and better model and keep the cycle going.  

4.     Short term agreements

Uncertainty in today’s day and age makes short-term agreements suitable so that you aren’t tied down into making heavy financial commitments, with the upcoming recession predicted by analysts and experts it’s better to have low costs associated with purchases that you can give up at any minute if your situation changes and you’re suddenly required to travel more or move somewhere.

5.     Protection against depreciation

Leasing protects you against unplanned depreciation. If the market value of your automobile falls suddenly, leasing will show to be a sensible financial option. If the leased automobile retains its worth well, you may usually buy it at the conclusion of the lease at a decent price and keep it or sell it.

There are other benefits of leasing as well, like being able to drive around a luxury, high-end car that you otherwise won’t be able to afford, with leasing that barrier no longer exists and you can get your hands on your dream car, no matter what the actual cost associated with that car is. Whatever financing option you end up choosing, make sure you read the fine print and understand everything that the agreement stipulates, it might even be wise to hire a lawyer or ask a friend well-versed in law to take a look at what your obligations and responsibilities are before accepting the proposal.

*collaboration

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