Purchasing a new vehicle is expensive. In addition to the price of the car or truck, there are taxes to pay and the interest rates on the loan. By the time people have finished paying on the car, it has depreciated significantly compromising its worth. In between time, there are maintenance costs and repairs that are no longer covered by a warranty. It is also possible that the vehicle no longer suits the needs of the individual or family. The two-seater sports car, for example, is no longer adequate when that first child is born.
Personal Contract Leasing provides a way to save money and drive a new vehicle every few years. One monthly payment includes the car and road tax. The payment is fixed and is based on the vehicle chosen, the amount used for a down payment, the length of the contract, and the mileage allotted per year. A basic car for three years, with mileage set at eight-thousand per year, is more affordable than purchasing the same vehicle.
Leasing also allows people to get more car for the money. The savings means people can lease a more expensive car than they could ever hope to buy. Vehicles are under manufacturer warranty for the entire length of the lease. Contracts are typically signed for two to five years. When the contract is up, simply select another vehicle to lease. Depreciation is not an issue because the car does not have to be sold by the driver.
One thing to keep in mind is that mileage allotment per year. If the vehicle is used for more miles than anticipated, there are extra costs per mile payable at the end of the contract. People need to have an accurate idea of how many miles they will travel each year. It is wise to overestimate and avoid those extra charges. Other products are available at the time of the contract signing that are low cost and very useful. They include GAP insurance, accident management, tyres and servicing, and motor insurance. These are all optional, but can save even more money throughout the life of the contract.