Why lease?
The #1 reason to choose leasing over buying is COST.
Take this example of this Audi A4 Avant we have a deal* on:
New,
In stockAudi
A4 Avant
4 years · 9 mo initial payment · 10,000 miles
LocoScore
Great value
Best deal
£294.28/pm
A few things to note:
- The list price of the car is £36,995.00
- The trade in price for this car is around £13,000.
- This all means there is around £24,000 of depreciation. And it doesn't even take into account financing costs.
Most people when they buy a new car take out a PCP loan (Personal Contract Purchase). So let's look at the cost of this for the A4@.
Audi are offering a PCP deal* on their website for the exact same A4 Avant model also on a 4 year term with 10,000 miles per annum.
| 47 monthly payments of | £389.00 |
| Intial payment | £5,926.66 |
| Total over term | £24,209.66 |
| 47 monthly payments of | £294.28 |
| Intial payment | £2,648.48 |
| Total over term | £16,479.64 |
The lease deal on LeaseLoco would save you £7,730.02 over the course of the term compared to the PCP deal on offer from Audi. That's almost £2,000 per year!!
And that Hombre, is the main reason leasing is better than buying!
ARRIBA!
So any other good reasons?
Of course, Amigos!
New cars. All cars and vans leased through LeaseLoco are brand new. Some may be pre-registered but our leasing partner would confirm that when you make an enquiry with them.
No road tax. All cars leased through LeaseLoco include road tax in the monthly payment. This can save you hundreds of £££ over the term.
Flexibility. Funders of lease cars are becoming more and more aware for lease contracts to be flexible. This means you can often terminate the lease early without being committed to the remaining lease payments; you will have early termination penalties but these can often be significantly less than the remaining lease payments (around 55% in some cases but this will vary on a case to case basis and you should always contact your funder to clarify the exact figures).
Breakdown cover. More and more manufacturers provide free breakdown cover for the warranty period of the car, meaning even more piece of mind for you.
Never sell your car again. You don't own the car so you don't sell it. You simply hand it back. So no hassle and no tyre kickers at the end of your term to worry about.
No depreciation worries. Your payments are fixed so even if the government massively increases tax on diesels in the middle of your lease, you don't have to worry about it.
* Both lease and PCP deals were available on 13 February 2020 and are most likely not going to be around while you're reading this but the point still stands.