Thanks to increasingly affordable fuel and an improving economy, the new car sales market has grown at a considerable rate in the last eighteen months. This is also represents a global trend, with growth in the U.S. matched by the UK and Europe.
While buying a new car may be increasingly accessible for citizens, however, it does not mean that this is necessarily the best course of action for every single set of circumstances. For those with an average income and a lack of permanent job security, leasing a vehicle can be far more cost-effective.
How does Car Leasing help you to Save Money?
So how exactly can leasing a car help you to save money? To begin with, the average monthly cost of leasing a car is lower than finance repayments on new vehicles, especially if you partner with a reputable service provider such as Hyundai. In addition to this, the typical lease term lasts for just two years, while financing agreements can cover any period of time depending on your budget and income. Even if you are able to secure a shorter-term financing arrangement for a new car, you will need to commit to higher monthly repayments in the process.
On another note, leasing frees you from the financial burden of ownership. More specifically, the typical terms of a lease agreement will include a provision for scheduled and unplanned maintenance, so you will only ever have to pay for fuel as a motorist. This contrasts sharply with owning a new car, as the cost of fuel must be considered alongside that of regular maintenance and repairs in the event of an accident. So be leasing, you can save considerable sums of money during the terms of your agreement while also having the opportunity to implement a clearly defined budget.
Leasing over Financing: No Depreciation
Above all else, leasing prevents you from losing money on a new car purchase. Automobiles are renowned as depreciating financial assets, which mean that you are effectively losing money from the moment you complete a purchase. The amount that you lose will be determined by the initial value of the car and the length of time that you own it for, but leasing enables you to negate this issue entirely. While there may be some negatives associated with leasing, these are far outweighed by positives and it is an ideal option for anyone with a fixed or restricted financial budget.