To many people, the idea of not owning a car is unnatural. To almost as many, the idea of owning a car they do not own is uncomfortable. However, these feelings are getting in the way of seeing what advantages personal car leasing has to offer.
Perhaps it is simply a lack of awareness, or even of understanding that leads some people to baulk at the idea of personal vehicle leasing, but the all of the arrangements that fall under the category of personal car leasing have many advantages to offer.
The first is money. A personal car leasing contract removes the need for a large initial capital outlay that many people find financially crippling. Unlike with taking out a loan, you are not borrowing money, and in one of the principal advantages of personal car leasing, although you are of course tied into a contract, if you can find someone to take it from you then you can end your car lease early in many cases. As such, it is not as daunting as tying yourself into a high-interest loan with set payment terms.
The other financial advantage is in terms of budgeting, and this is why car leasing is particularly popular with businesses. Rather than an initial capital outlay followed by sporadic bursts of maintenance costs, road tax etc. you only have fixed monthly payments to deal with. In most cases, you will still be responsible for road tax and maintenance but some contracts will include these into the payments meaning that you only ever have the monthly payments to deal with.
Another advantage of personal car leasing is the question of ownership. Ownership if fantastic in a lot of ways, but it also carries responsibility with it such as disposal responsibility. It also means that you are subject to depreciation risk i.e. when you come to sell the car (if you’re not disposing of it) you are going to get a lot less for it than when you paid for it due to market forces and natural wear and tear (or worse depending on what kind of driver you are). With a personal car leasing agreement, the car leasing company retains ownership at least for the duration of the contract and as such is responsible for these things. A significant weight off any driver’s shoulders.
As you can see, there are many benefits to personal car leasing over and above simple ownership. The sooner more people become more comfortable with the concept, the better.