Cost-Saving Benefits Of Switching To Car Leasing

Cost-Saving Benefits Of Switching To Car Leasing

It is almost impossible not to feel the pinch from the current cost of living crisis, as it seeps into every area of our everyday lives; from heating our homes and shopping for food to driving our cars. As a result, everybody is in the business of saving costs where they can and looking at how we can refine our lifestyles to limit our expenses. Motoring is obviously an essential cost for most people and any option which allows you some financial freedom is going to be worth looking at, and car leasing is one such alternative.

A brand new car loses 40% of its value in the first year, and this deterioration in value continues however much you try to limit mileage and look after the general condition of the car. This is known as depreciation and is the unavoidable burden of owning an asset such as a car. However, car leasing lifts that burden from your shoulders without affecting the pleasure you derive from the experience of driving. In 2022 many people are used to the ‘subscription model’ of living; we pay monthly for music from Spotify and films and television from Netflix and car leasing is no different; whereby ownership of something does not affect how much you can enjoy it.

The benefits of car leasing

In all walks of life at the moment it is cost-effective to pay as little as you can for something, to allow you to manage your monthly costs easier, and car leasing does just that. The cost saving benefits of car leasing include:

• Depreciation– because you don’t own the vehicle, your fixed monthly payment is effectively paying the cost of depreciation to the leasing company – who do own the vehicle – while you are driving it. This will be much less than paying finance to own the vehicle.

• Fuel– when taking out a car lease deal you agree to an annual mileage restriction, this is so that the leasing company can calculate how much depreciation they should expect in the car’s value when it’s returned to them. So when you agree to a certain annual mileage, you then have to manage your driving to allow for this, and this will help you cut costs by driving more economically, otherwise you will face fines for exceeding the mileage restriction.

• Brand new cars – because you are always driving a brand new car via car leasing, you will benefit from the many advances in technology. This includes the best safety features, the best CO2 emissions and the best fuel economy.

• Service and maintenance – this is an optional payment within your fixed monthly costs, but whether you use this option or agree your own service and maintenance package, because you are driving a brand new car you can expect minimal service and maintenance costs.

• No MOT costs – an MOT is due on any car after three years, but with car leasing you can always avoid this by having a two year lease, or even giving the car up on a three year lease when the MOT is due.

• No balloon payments – a common model of car finance is Personal Contract Purchase (PCP). With this structure you pay a fixed monthly cost for a period of time in order to drive the car, and then at the end of this period you have the option of paying a lump sum balloon payment to secure ownership of the car, or return the car and start driving a new one. If you opt to pay for ownership then you need to save a large lump sum, which can be beyond many people.

Car leasing with Pink Car Leasing

At Pink Car Leasing we understand the economic conditions of today and the pressures you face in managing everyday costs. This is why we can work with you to find a flexible package which suits your budget and still allows you to drive a hi-spec vehicle that will give you the thrill and comfort you want from driving.

Because car leasing is a cost-effective means of driving, you will be able to afford a higher-spec of vehicle for your monthly outlay than you would by spending the same money for car ownership. So browse the best car leasing deals available and then speak to our sales experts today to secure a brand new vehicle for a period of your choosing, and without the burden of ownership.