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Tech which makes Sense

The car has become an almost essential part of our lifestyle. However, today’s tough economic times have made things even more difficult, increasing the need for better solutions. One option that is becoming increasingly popular is car leasing. Instead of buying a car outright, leasing the car provides many more benefits than buying the car outright! For those who don’t know yet, we outline some of the main benefits of car leasing:

Lower monthly payments

One-time monthly payments are always cheaper than hoarding the money to buy the car right away. This could mean taking out a car loan that will inevitably have to pay additional interest as well. The fixed monthly payment is often manageable and one can easily plan for it. Again, when you lease a car, you only have to pay the difference between the purchase price and the anticipated value of the car at the end of the lease, which is also called the residual value. This works out much cheaper and gives you the flexibility to afford a more expensive car, even with the same monthly budget. If you compare it to the car loan payments, the total cost turns out to be much cheaper.

No to nominal deposit

Leasing a car requires no deposit or requires an extremely small deposit which in turn lowers your monthly payments. Although not required, there is no deposit because leasing is an option open to everyone. Not only does it free you from the arduous process of saving the deposit, but it also helps you get the car much sooner.

No bad credit issues

Bad credit is often a big hurdle when it comes to getting a loan. But this is not a requirement or a problem when renting a car. Therefore, even people with bad credit scores can easily rent a car.

Don’t worry about depreciation

One of the most expensive parts of motoring is the loss of value of the vehicle over time. This is why people look at residual value to calculate its value at the time they would try to sell it. When you lease the car, this risk is transferred to the finance company and you no longer have to worry about it. While renting it, you know exactly how much to pay, and at the end of the lease, you simply return the vehicle.

regular updates

Technology in the car is changing as fast as a person changes their clothes. New safety features, increased fuel efficiency, and improvements to car entertainment systems are coming so fast that even in a couple of years, your car can feel outdated. When you buy a car, it implies that you will be keeping it for at least a decade or suffer financial loss while upgrading it. However, with leasing, you can get the latest model every two to four years. So, unlike buying a car, leasing is the cheapest and easiest way to get the latest vehicle for yourself.

Avoiding extra costs

Every time you upgrade your vehicle to the latest model, it’s about more than just impressing your neighbors. You also avoid all the costs that naturally arise from driving an older car, which can be as simple as higher fuel costs. Newer cars tend to have fewer problems, and if a problem does arise, it’s usually covered under warranty. Again, since MOTs are not required for vehicles that are on the road less than 3 years, minimum contracts tend to avoid that expense as well. Another added advantage is that one does not have to worry about Excise Taxes on Vehicles. Often this is included in the contract and nothing additional is required to be paid.

recover VAT

When a car is leased for business purposes, 50% VAT can be claimed deducted from your contract. This can be a great tax saver as well as a money saving tool.

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