Many people are looking for more ways to save money than ever before and this has seen an increase in the popularity of private car leasing. This has been popular in some countries for many years and in the United States of America approximately one third of all cars on the road are private lease cars. There are plenty of advantages to choosing to lease a car rather than buy one directly from a dealership. However, for those of you who have just started to look into this option, here are the top 4 advantages of private car leasing (or as the Danes say bil leasing).
Leasing companies will require a much smaller deposit than a finance company. Typically this is three times the monthly repayment amount or less so a person looking to drive a new car will be able to get one much quicker as theydo not have to spend so much time saving. Another consideration is that the monthly repayment will be up to a third lower than it would be with a finance company. This is because the repayment is made up of how much the car will depreciate over the period of your lease agreement, with a small percentage of profit on top for the lease company.
The car that you lease will be brand new straight from the dealer and you choose it just as you would normally. The difference is that the lease company buys it, so you should still try and get the best deal possible to help lower your monthly repayments. Another way to lower your monthly payment that bit more is to pick a make and model of car that has a low depreciation value. Of course being a brand new car it will be covered by warrantee so you will not have any worries about any major expense should that car go wrong during the lease period.
Often with car finance you pay a fixed monthly amount and then have to make a last balloon payment at the end of your finance term. With a lease car you simply hand it back at the end of the term with nothing to pay. This allows you to do one of two things, you can either purchase the car from the lease company for a price that was fixed at the beginning of your agreement or you can start a new lease agreement. The choice is yours.
Private lease companies will include road tax for the length of your agreement. They will also have ‘bolt on’ items that you can add to the package. So for example you can pay a fixed additional charge every month and add a maintenance package. This will cover you for routine servicing, tire replacement, exhaust replacement, etc. Many people find these not only convenient but they also like the piece of mind they provide. Anytime there is a problem with the car or it needs maintenance you can be assured that it will be covered by either the warrantee or the leasing company. Did you know that Volkswagen offers car leasing? You can watch the latest videos from Volkswagen (or as the Danes say videoer fra Volkswagen) on this web page.