Depending on your budget and needs, car leasing may be a better option than buying a new car outright. Seniors on fixed incomes who want to drive a new car with the latest safety features every couple of years or who want a shorter financial commitment on their car could benefit from car leasing.
So if you are a senior and are confused about how leasing works, Nationwide Vehicle Contracts has put together a list of 10 of the most frequently asked questions by senior citizens regarding car leasing.
Still wondering whether leasing a car is right for you? Recently, personal car leasing has become much more popular in the UK and there are plenty of benefits to it. Here are our top 10 reasons why you should consider a lease next time.
Think of a car lease as ‘renting’ a car on long-term contract hire in exchange for a fixed monthly payment, typically over 2, 3 or 4 years. At the end of the agreed contract length, the car’s keys are simply handed over when the car is picked up.
Lease a car and you’ll invariably find you’re driving a better vehicle than you would if you had bought one. Why is this? With a car lease you only pay the car’s depreciation for the lease period, not the value of the car (because you don’t own it). As a result, your monthly payments are typically lower compared with other forms of finance, so you can lease a better make, trim or option.
Worried about not getting to work or the airport because your car might break down? The older cars get, the less reliable they become. Lease a car and that won’t be a problem because you’ll be driving a brand new model. What’s more, if something does go wrong, the car will normally be covered by the manufacturer’s warranty.
Because you are driving new, you benefit from the latest in-car technology manufacturers are introducing. Recent popular additions include things like Autonomous Emergency Braking to help prevent crashes, MirrorLink that syncs your smartphone screen with the car’s and even night vision.
Billionaire oil tycoon J Paul Getty said: “If it appreciates, buy it. If it depreciates, lease it.” Lease a car and you won’t be sinking your savings into something that spends much of its life sitting outside your home losing your money.
Apart from fuel and insurance, when you lease a car you know exactly what motoring is going to cost you because your expenses are rolled into one – monthly payments, Road Fund licence and breakdown cover. And if you include a maintenance package, your ability to budget becomes even stronger
You’re driving a new, hence more reliable car, so it’s highly likely you won’t have to replace big-ticket mechanical items such as timing belts or aircon units. You probably won’t even need a new battery.
Cars don’t have to have an annual MoT roadworthiness check until their third birthday. By that time, the car will most likely not be your responsibility any more.
As you’re dealing with independent brokers who constantly review the market for the best rates, you’re not being held captive to dealership finance. You also don’t have to trawl around car dealerships trying to work out which one will give you the best price – only to end up feeling like they all want to rob you.Think of a car lease as ‘renting’ a car on long-term contract hire in exchange for a fixed monthly payment, typically over 2, 3 or 4 years depending on your wishes or the terms of any special offers you find. At the end of the agreed contract length, the car’s keys are simply handed over to a collection agent who picks the car up.