Much like any large investment, it is important to weigh up your options when looking for a new car to get the best possible value for your money. Those that are successful with their finances will tell you that any product which appreciates in value should be purchased, whilst any that depreciates should be rented. The same applies to vehicles, and the value of a new car will fall from the moment you leave the dealership. The drop in value is between 15 and 35% in the first year, and 50% upwards over the next two years. If you were to lease the car, there are no depreciation concerns as you do not own the car and return it at the end of the agreement.
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Approximately 1 in 4 cars on the roads in the USA are leased, and it is clear why an increasing number of motorists are now hiring their vehicles instead of buying them outright and taking out costly car loans. In addition to negating the depreciation, leasing is also an affordable way to drive brand new cars. In most cases, a small deposit is made which often equates to 3 monthly payments. The monthly payments are low, and can be up to 55% less costly than car loan repayments. The majority of warranties will cover the length of the lease agreement, helping to keep maintenance costs down.
The financial benefits of leasing a new car over buying one outright are clear, but this is not the only advantage. Car leasing is a terrific option for car enthusiasts that want to experience driving the latest models. They can afford to lease a brand new car, and at the end of the agreement they can essentially upgrade to a newer model with another lease agreement. Not only is this a luxury, but you also benefit from improved performance, fuel economy and safety.
Car leasing companies, such as John Clark Leasing, carry all the leading manufacturers and offer the latest models, enabling you to drive away with your dream car without spending a fortune. Also, most companies will offer different leasing offers which will allow you to find a monthly payment rate that suits you. Leasing is therefore the smart financial move to make when looking for a new car, plus you get the added benefit of getting to drive brand new models every few years. This makes it an affordable, flexible and stress free solution.