What you need to know about vehicle leasing in 2022

As fuel prices increase in line with the overall cost of living, motorists around the country are seeking ways to drive down their associated spending on the road.

For years now, the leasing market has been growing in popularity within the UK. Which? announced in 2021 that three quarters of all new cars purchased in the UK are bought on finance while an additional industry stat highlighted the fact that more than 1.6 million people across the United Kingdom are choosing to lease as opposed to buying.

With the events of the pandemic and ensuing lockdowns very much dictating life for the past two years, it should come as no surprise that motorists, particularly younger ones, are seeking a more fluid agreement when it comes to their car, hence the growth in leasing.

With this in mind, we take a look at the advantages and disadvantages of car leasing.

The benefits of car leasing

Getting behind the wheel of a brand-new vehicle for a considerably cheaper monthly payment than you would with alternative car financing options is one of the benefits of leasing a car.

That’s because you’ll be effectively renting the car rather than owning it.

You won’t have to worry about the vehicle depreciating, and when your auto leasing contract expires, you can simply swap to a new car if you want to.

Car leasing contracts typically last two to four years, after which you return the vehicle to the leasing company.

There are no other costs to pay when returning a car, aside from any damage that may have occurred.

This means you’ll need to understand the fair wear and tear rules that come with your leased car, and the BVRLA website has a great guide to help.

Another benefit of leasing a car is that you won’t have to sell it, which can be a time-consuming and costly process, and you won’t have to worry about its trade-in value.

The drawbacks of car leasing

Firstly, the main disadvantage of car leasing is the fact that you won’t own the car, and you won’t get an option to buy it. Furthermore, you also need to ensure that any serious damage has been repaired before the car is handed back to the lease company or expect to pay a repair bill.

The car leasing company will appreciate that cars do get damaged so minor issues will not attract a repair bill. However, you must return the car in a good condition which means you’ll need to clean it and take out all of your personal belongings.

As we previously mentioned choosing how many miles you’ll be travelling every year is particularly important because doing more miles than you sign up to will lead to an excess mileage charge. These can be expensive, depending on the car leasing company.

For this reason, many car leasing companies will recommend that you choose a figure that is slightly more than you would expect to do to avoid being hit with an excess mileage charge.

You will also have your credit history checked to ensure that you can meet the monthly payments and that you don’t have a poor credit history.

You are also not allowed to make any modifications to the vehicle, and it must be returned with the same equipment and in the same condition as when it was handed over to you.

So, there you have it, everything you need to know about the advantages and disadvantages in regard to vehicle leasing. If you’re considering the likes of a Nissan Qashqai lease be confident you know what you’re signing yourself up for with the help of this handy guide!