Are you looking to save money right now? This is something that many people are trying to do with the cost of living crisis, which is seeing just about everything rise in price and is putting a great strain on people’s finances. For motorists, one of the best ways that you can make savings is to opt for a lease instead of purchasing a car and this is for a few reasons.
Vehicle Costs Rising
Many motorists are feeling the strain right now with so many car costs rising. In addition to the rising cost of used and new cars, motorists are also having to fork out extra at the pump as well as for car insurance. As a result, 19% of motorists are having to use a loan to cover their car costs right now and 15% even admitted to providing inaccurate information to their car insurer to try and get a cheaper premium. It is clear that many motorists are struggling right now, so how can leasing help?
Lower Monthly Costs
One of the main ways that leasing is cheaper is that you have lower monthly costs. Buying a car on a finance deal can result in high monthly payments right now, but it is cheaper when leasing as you are not paying to eventually own the car. This could make a big difference to your monthly budget and give you some breathing room each month.
Worry-Free Maintenance
You also have worry-free maintenance with a lease because it will be covered by the warranty and many companies include maintenance costs in the package. When you own your own car, you will find that unexpected costs can arise when it comes to maintenance and repairs and these have the potential to be hugely expensive. Therefore, leasing is a smart way to save money, avoid nasty surprises and have peace of mind.
Tax Deductions
If you lease a car and use it for work-related purposes then you can also benefit from tax deductions. To benefit from this, you will want to choose a car with low emissions as you may not be able to claim all of the charges if you hire a car that emits more than 110g/km of CO2.
Depreciation
New cars lose around 35% of their value after just one year, which means that you are losing a huge amount if you sell the car later on. This is not an issue with leasing as you do not have to worry about reselling the car as you simply return the keys at the end of the agreement and can then take out a lease on a newer vehicle.
With many motorists feeling the squeeze right now, leasing your next vehicle could be a sensible option that helps you to make long-term savings.
