Why car leasing is on the rise in 2018

Claire Small's picture
Authored by Claire Small
Posted Monday, May 14, 2018 - 6:44am

As technology becomes more advanced and car manufacturers become more innovative, more people are wanting to have the newest and best car on the road. People have always wanted to try the latest technology, but with the rising popularity of car leasing, more drivers are becoming able to actually have the car they want. In terms of all of the auto and asset leasing markets in the world, the UK has become the third largest.

Car leasing involves getting a new vehicle in return for paying a monthly fee to the leasing company. You are then involved in a long-term rental contract which normally lasts a few years. To be able to lease a car, you’ll need to pass a credit check and you’ll also need to pay some of the money up front. After a certain amount of time, you can swap the car that you have leased for a different one which is great if there is a newer model that you’d like to try. The amount of people who have been taking out car leasing contracts has been increasing over the years and we are going to explore why in this article. Keep reading to find out more.

Great Vehicle Choice

One of the most important reasons for the increase in car leasing is the great selection of vehicles on offer. Some companies offer great deals in some of the top range cars like Jaguar or Range Rover leasing. Many drivers love the idea of having the best model of car without having to pay a large upfront price. Many people would never be able to afford to buy an extremely expensive car but presented with the option, they would consider leasing a range rover.

Great for Businesses

The great thing about car leasing is that it can work really well for businesses who like to provide company cars. When they take out a contract, they are able to budget themselves for the next few years because of the fixed price that they will be expected to pay. Car leasing can also mean that you can improve your company’s image by upgrading your company cars every few years. There are also many tax benefits to leasing company cars such as claiming back 50% of your VAT when the car leasing company are a VAT registered company. This is why there has been an increase in businesses leasing cars.

Great for Individuals

More people have been deciding to lease a car for themselves because it is often cheaper than buying a new car. Individuals are able to forget about the worries of car depreciation and selling the car when they are done with it. The fixed monthly cost is also a massive draw for people who take out leases because they can budget themselves from month to month without having to worry about a large upfront fee. Car leasing is on the rise and it is likely to get even more popular as more people understand the benefits.