Personal car leasing, or personal contract hire as it is sometimes known, is becoming more and more popular nowadays. The leasing terminology can be a bit confusing but the true is that when you drive away in your brand new car it is already losing value. If you take out a car loan to purchase a car you are simply paying a set amount a month for something that is losing, not gaining value. By the time you sell the vehicle in five to eight years, it is worth about 90 percent less than what it was when you bought it.
Even if your vehicle is cheap and second hand, you are still loosing every year on depreciation, spending on servicing, road tax and MOT. The total cost can be probably rounded up to £2,000 a year. Why don’t have a brand new car for a less than that? People who choose leasing over purchasing know about the many benefits and savings involved in this decision. A new car with a minimum deposit or initial payment, minimum monthly payments, no risk, and using someone elses money, it speaks for itself!
