If you are reading this blog and have visited this website, the chances are you're interested in leasing a car.
It may be your first time and, like any new experience, you may be wondering whether it is the right thing to do for you personally and if it is a good move financially too. To help you make a decision, here are a few things to think about when considering whether to buy a new car or lease one.
If you are looking to lease, you will be joining a growing number of drivers on the road that are travelling in cars that they do not actually own - and not just fleet car drivers either. According to the BVRLA (British Vehicle Rental and Leasing Association), in 2014, the number of Personal Leasing drivers increased by 34% so that now 1 in every 10 cars on the UK roads is supplied by a BVRLA member - and that includes us here at Nationwide Vehicle Contracts! When it comes to vans it's 1 in every 6 so leasing must be doing something right.
The vehicle leasing and rental industry contributes £24.9bn to the UK economy every year.
If you are looking at calculating the differences in the financial world between owning a car and leasing one, you will need to look at:
BUYING: Tyres, vehicle insurance, breakdown assistance insurance, vehicle tax, servicing, MoT, mechanical breakdown insurance, depreciation, interest lost from your savings by withdrawing money to pay for car / cost of any loan/part-loan you take out.
LEASING: Rental costs, car insurance, interest gained by keeping money in the savings account, servicing (if maintenance contract is not taken), MoT (for vehicles taken out on 3 and 4 year contracts), costs of 'making good' any areas of the car before returning it to leasing company.
Deciding between leasing and buying a vehicle is a personal choice, and entirely up to you; but let's leave the final word to the late J.Paul Getty, billionaire oil tycoon, who knew fair bit about finance I should think: “If it appreciates, buy it. If it depreciates, lease it.”
To find out more about leasing a vehicle with Nationwide Vehicle Contracts, read our guide to how leasing works. Here, you can find out all about the leasing process, finance and eligibility, and more.
It's important to understand there are a number of different leasing contracts available to personal customers and businesses, all of which work in a slightly different way. So, we've also created a number of guides to help you better understand the ins and outs of leasing and finance.
Check out our detailed guides to personal vehicle leasing and business leasing information.
Alternatively, give us a call on 0800 091 9595 or 0345 811 9595 - our leasing consultants will be happy to help you find the leasing deal you're looking for.