Want a new car? It’s not as easy as it sounds. You need to be well prepared before setting out to look for the one for you. There are various questions you need to ask yourself first. One of the critical things you need to answer right away is if you would like to lease or buy the car.
But, first, it’s important to know exactly what car leasing is. Check it out below:
What is leasing and what is PCH?
Leasing is a contractual agreement between you and the leasing company to use a piece of property for your own use for a set amount of time. Items that can be leased include buildings, land and vehicles.
PCH or Personal Contract Hire is a type of leasing for cars. It’s a finance option that many people go for since it is like a long-term car rental. You sign a contract which allows you to take the car you want for an agreed period and mileage. Once the contract ends, you hand the car back. Unlike buying, which is a permanent trade-off, leasing has less commitment.
Not convinced yet? Read on and find out how leasing can be advantageous for you.
Here are a few reasons why people prefer leasing more than buying:
Leasing a car is more affordable than purchasing a new one. Just imagine, if you choose to do this, you won’t have to pay a considerable amount upfront when you decide on the car you want. You can take it slow and pay it over a lengthier period. Hence, it won’t weigh on you as much. You only have to cover small monthly payments.
Makes you more flexible
You don’t own the car, and you’re going to return it shortly. Hence, you have more freedom to change vehicle every few years or so. If you are someone whoquicklygets bored with things and loves to have a new car every 2-3 years, then this is the right option for you.
To keep up with the latest technology
Because you are going to hand over the vehicle sooner or later, you can always get your hands on the latest gizmos and gadgets that are available on the market. Since technology is continually being updated and improved, you get new features as soon as they are released.
There are tax advantages
Leasing is structured, so you can write off the full amount you have to pay as a deductible expense. It’s very different from purchasing a car. If you decide to buy, you have to think about various things such as capitalising and depreciating the asset. Hence, this means that you will have a slower recovery of your expenses.
These are the things that motivate people to lease rather than buy. If you want to find out more about car leasing and learn other advantages of PCH, check out www.genusleasing.com.