The aspiration of most people was once ownership – owning houses and owning cars. Both houses and cars were a symbol of income and you had to earn or save as much as your neighbours to keep up with them.
Due to a lack of affordability within the housing market, purchasing property – especially for first-time buyers – has become almost unachievable. This has caused a huge change in consumer habits, with an increase in both renting property and shared ownership.
Likewise, due to the increase in the cost of both production and raw materials, car prices have been steadily increasing, with no sign of decreasing. Furthermore, the government states that average UK wages have not increased in line with inflation, so affording a brand new car can be a big ask. This is before you consider how much a new car depreciates after three years and the costs of running an older car.
Car leasing is now a serious option for those looking for a new car without the high purchase cost. According to the British Vehicle Rental and Leasing Association, approximately 1.3 million car drivers are now leasing.
How does it work?
Car leasing works by a company negotiating the best deal on paying only the depreciation costs of the car rather than the full value. This means the company does not lose the depreciation value of the car after three years and the leaser can drive a new car at the fraction of the cost of purchasing it.
If you would like a new car but are struggling to find the full cost or cannot afford to lose up to half the value of the car within the first three years, you should consider car leasing Leicester through a company such as https://leasing.totalmotion.co.uk/.
By deciding to lease, you can also benefit from the manufacturer’s warranty, road tax and breakdown cover. Furthermore, the cars do not need an MOT, meaning the general running costs of a leased car are significantly lower than those of a used car.
Overall, leasing offers a great alternative to purchasing, with all the features of a new car. Three years later, you are free to swap again to the latest model, making leasing a smart option in today’s challenging financial market.