A question that we are often asked is, “Is leasing more popular than purchasing?”
Leasing, which really should be called renting, continues to grow in popularity in most sectors of the asset finance industry.
The reasons that leasing is more popular than purchasing are many. The benefits if you’re considering leasing a car are:
• Low initial/upfront payment
• Affordable monthly repayments
• Simply hand the car back at the end of the contract
• No hassle with selling it or part exchange issues or values
There are some facts that can complicate the situation. These are:
• Return conditions are sometimes very stringent (and putting the asset back into A1 condition can be expensive)
• No flexibility in return date i.e. you can’t usually extend the rental period for a further three months
The clear winner is….
In cash flow terms renting is a clear winner with one small upfront payment then fixed rental for a fixed period.
A customer recently asked us for a quote on a new Range Rover Evoque Cabriolet. He already had PCP (Personal Contact Purchase) finance figures from the dealership. Whilst our quote was cheaper we asked, “why don’t you rent it?” We introduced him to the web site contracthireandleasing.com and on a like for like 36 month contract he saved over £7,500.
Another EFT Finance customer says, “I now rent all my wheeled assets. It simply works out cheaper and thankfully takes me out of the lottery of second hand markets.”
The world is moving to renting. Don’t miss out!