Can you truly call a leased car as your own? Who is the actual owner of your leased car? Will it ever really become yours?
Well, leasing a car is like say, taking a car on rent. You can drive it all you want and use it as you wish, but at the end of the day the car belongs to the leasing company who has given you the car lease deals. On the other hand, when you buy a car, you are driving around with the confidence that this is ‘my car’ and you are the only true owner of the vehicle.
But how much does this ownership difference matter? After all, you are driving a leased car much like your neighbor drives his ‘own’ car that he always proclaims to have purchased.
And the benefits are stacked up mostly on your side only. You did not have to dole out a hefty down payment like your ‘car owner’ neighbor, did you? In fact, some car leasing London deals do not require any initial payment at all. And even if you have to put down an initial amount, your monthly payouts will be reduced further.
Again, your neighbor is burdened by huge loan installments that are due every month while you can rest easy that your monthly lease charges will be significantly lower (at least 35 to 50%). This is because you are paying only for the vehicle's predicted depreciated value, while your neighbor has to foot the entire value!
Both these benefits can save you a considerable amount of money and this is why when you opt for a car lease, you can actually afford a better make and model than your neighbor….
Car loans are generally for 5 years and a few years down the line, your neighbor may start ruing the fact that his loan payments are more than the steadily depreciating value of the car. So even while he is acquiring equity in the car, his car is steadily losing value. So, by the time he gains the title to the car at the end of the loan period, he may not actually like to continue to own it!
On the other hand, car lease deals are generally for 2-3 years which means that you can trade in your leased car for another latest model soon! What’s more, you also have the option to buy out the car at the end of the lease term, if you so wish.
Yet, for car leasing London or other lease deals you always have to keep the mileage and maintenance restrictions in mind. Negligence in maintaining and servicing the car properly or even exceeding the stipulated mileage limit can prove very costly at the end of the lease term.