Deciding on which new car to buy is only half the battle. Once you know what your next set of wheels will be you then need to work out how you’re going to pay for it.
More and more people are considering leasing, or Personal Contract Hire (PCH) as it is also known, as a way to run a new car but not pay for it.
If you have financial responsibilities already like a mortgage or a growing family, the last thing you need is unexpected bills landing on your doorstep. Leasing enables you to rent a car for an agreed period of time for a set price, at the end of which you simply hand the keys back.
To help you decide if leasing is right for you we have highlighted the pros and cons of choosing it as a way to finance your next new car.
The Pros
- A fixed monthly cost means you can more effectively budget your monthly expenses. Plenty of contracts include maintenance and servicing too.
- Leasing is almost always cheaper than other finance methods because you don’t own the car at the end of the contract.
- Road tax is included in the cost so that is one less bill to worry about.
- You don’t need to worry about selling the car at the end of the lease as depreciation is worked into your monthly cost. That saves you time and eliminates the financial risk involved.
- You gain access to that brand new car you’ve been passing every day which you may otherwise not have been able to afford.
The Cons
- Leasing is a bit like renting, you spend hundreds of pounds a month on an asset which will never be yours.
- Leasing companies can stipulate how you use the car, the most common way being how many miles you travel and the condition of the car on its return, which if you don’t obide by could land you with extra charges.
- You are tied into a financial commitment for the next two to five years.
- Some leasing contracts require a high first payment.
Compare the latest deals with Parkers
It’s important to shop around to find the best leasing deals on the market. That’s where Parkers comes in. We’ve gathered some of the best leasing deals for you to search and compare in our leasing section.
There are over 250,000 deals on our site at the moment – check out our dedicated section today here.
