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The growing popularity of car leasing in the UK has aroused interest from a wider range of private individuals. The popularity of this option is not without merit, but leasing is not necessarily the right choice for everyone. Understanding the potential advantages is important to understanding if leasing a vehicle is right for you.

One of the most attractive aspects of motor vehicle leasing is the low initial outlay of cash. With an outright purchase, a buyer must come up with the full amount and in the case of a loan, it is often required to put down 20% of the vehicle’s purchase price this can be significant for even a modest new vehicle.

Another unique aspect of leasing is that the monthly lease rate does not change even if bank rates rise over time. There is a benefit in this for keeping a level personal budget, and not worrying about unexpected payment changes that could affect other household expenses.

Vehicle leasing generally features lower monthly payments. A lease works by determining the residual value of the vehicle at the end of the lease versus the initial cost. The difference is what determines the lease amount (along with servicing, administrative and other fees). This makes leasing unique in that vehicles that maintain their value, even if they are relatively expensive, provide the best lease terms. This can open up a wider variety of vehicles to the potential lessee.

A potential money saving aspect of leasing is to include a maintenance and service option with the contract. For just a few additional pounds, you can be free of paying for servicing on the vehicle. These are comprehensive plans, cover routine maintenance, worn part replacement and tyre replacement from typical wear. This aspect of leasing can make the total cost of ownership much lower versus a purchase.

Finally, disposing of the vehicle is as simple as turning it in at the end of the lease term. There is no need to go through the rigors of selling the car or trying to trade the vehicle in on a replacement. Just toss the keys and walk away. It is as simple as that.