Guide to Leasing
CGR Ltd is committed to providing our customers with the best car leasing deals possible. We know not everyone understands how car leasing works, and it seem complex for some. So here we provide an overview of how car leasing works, including the pros and the cons.
What is Car Leasing?
Car leasing is essentially renting a car for an extended specific period of time, usually two to four years…its your call !!!. You pay a monthly fee to use the car, and you return the vehicle at the end of the lease term..
When you lease a car, you don't own it. Instead, you are paying for the use of the car. The lease agreement will specify the terms of the lease, including the monthly payment, the length of the lease, and any mileage restrictions.
What are the pros ?
Lower Monthly Payments
Because you are only paying for the use of the car and not the entire value of the car one of the biggest advantages of car leasing is that the monthly payments are typically lower than the monthly payments for purchasing a car. This can be especially helpful for those who have a tighter budget.
Drive a New Car Every Few Years
You could drive a new car every few years. This is because lease terms are usually two to four years long. This can be great for those who want to drive the latest models and have access to the latest features.
Fewer Maintenance Costs
When you lease a car, you don't have to worry about maintenance costs as much as you would if you purchased a car. This is because the vehicles will largely be within the Manufacturer warranty period. If your mileage is higher or you are looking at a longer leasing period you can opt to include a full maintenance contract that covers all your service, maintenance and tyre costs for the entire contract for complete peace of mind.
What are the cons ?
No Equity
One of the biggest disadvantages of car leasing is that you don't own the car. This means that you don't have any equity in the car, and you don't have any assets to sell or trade-in at the end of the lease term. Equally you don’t have any residual value risk either !!!
Mileage Restrictions
Lease agreements will come with mileage restrictions. This means that you can only drive a certain number of miles, which you determine at the outset, over the contract duration without incurring additional fees. If you exceed the mileage limit, you will have to pay, in general a pence per mile fee.
No Modifications
When you lease a car, you can't make any modifications to the car. This includes adding custom parts or making any changes that alter the car's appearance or performance.
