Why Car Leasing is Such a Big Industry

| Updated on February 28, 2024

Reports have said that an increasing number of UK drivers are opting to lease their vehicle, as opposed to making an outright purchase. The car leasing trend ensures that drivers rent at a fixed price for a set period before taking it back to the leaser once the term duration is over. The practice of leasing comes from the U.S., where it’s reported that 25 percent of cars are leased. While advantages and disadvantages exist when it comes to leasing a vehicle, the industry has become substantial in the UK. Here are eight reasons why.

Car Leasing is a Big Industry

No Concerns Over Depreciation

Depreciation is an issue for anyone who has ever bought a new vehicle. From the moment the consumer drives their new car away from the garage forecourt, its value has decreased. The AA states that the average car loses approximately 60 percent of its value over three years. With leasing, however, this issue doesn’t exist. The driver returns the car once the term is over, without any money being lost or a need to sell it on. A leasing deal also means you can choose a new car once every few years.

Fixed Monthly Fees

Leasing enables you to pay a fixed monthly cost to suit your budget, unlike when buying a vehicle outright, where you need to take out a loan or find a lump sum. The majority of leasing deals also allow you to pay a large deposit at the outset to reduce your monthly payments going forward.

A Price to Suit Your Budget

From the Nissan Qashqai and the Golf Hatchback at the low end to the higher-end Mercedes E Class Saloon and Range Rover Evoque, leasing is available to drivers on all sorts of budgets.

A Great Choice for Businesses

Leasing is becoming more and more popular with businesses that have seen the advantages of the financing route. Leasing doesn’t tie up capital like purchasing a vehicle does, with hassle-free disposal and fairly-priced maintenance contracts among the other benefits.

Open to All

While those with a poor credit history might struggle to get a loan if they want to buy a vehicle, this issue is less of a concern when leasing. Some providers claim to help those drivers with credit histories that include such red flags as IVAs, defaults, CCJs, and missed payments.

Convenience

Car leasing is also convenient and less complicated than buying a used or a new vehicle. You simply decide which car you want, and choose the right package and model for you. A decent car provider will offer an efficient service and pull out all the stops to guide you through the leasing process and help you get the right leasing car.

When you buy a vehicle, there will eventually come a time when you’ll need to sell it, which isn’t just costly but also takes up time. When you lease a vehicle, the only thing you’re required to do is to return the car and lease a new one.

Upgrade Your Vehicle Every Few Years

Today, we easily get bored of their toys and gadgets. We’re constantly looking to upgrade our possessions to have the latest and greatest version. Cars are no exception for some people, as they enjoy the feeling that comes with acquiring a new model once they’ve gotten bored of driving the same one for an extended period. When you buy a vehicle, you might find that you end up with it longer than you would like to justify buying it in the first place. If you find a leasing company you like, you might find yourself returning again and again when looking to upgrade your vehicle. After all, it’s perfectly natural to upgrade every few years when you go down the leasing route.

Better Technology

Cars are very advanced these days, with the latest models from the higher-end brands offering some very impressive technology. Such companies as BMW release state-of-the-art vehicles that make for a much-improved driving experience with regards to the technology and engines. This has led to increased popularity in BMW leasing, with many people taking advantage of offers to drive away in a BMW featuring the latest and greatest technology.

Conclusion

There are numerous reasons to explain the success of the leasing industry. Drivers are becoming more aware that they can get to drive a higher-end car than they would be able to afford if they were buying outright, without having to deal with depreciation and other issues that a car owner would.

Also Read- History of Classic Cars


Alan Biles

Alan Biles is a frequent traveller and also loves capturing every beautiful moment in his camera. He also enjoys working in the Automobile field, and this reflects in his writing. Currently, he is working as a freelance writer for multiple websites related to travel and automobiles. He loves updating about his excursions on his Instagram.

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