What Is Car Leasing?
Car leasing is like long-term rental of a brand-new car fixed monthly payments; drive the latest model every few years and hand the car back at the end.
Here we break down what leasing a car looks like, plus some of the benefits you can take advantage of with a car lease.
Why lease a car?
The main reason why you should lease a car is the cost versus buying.
Here’s an example of a Mercedes-Benz CLA Class we have a lease deal* on:
Now, compare this to a PCP (Personal Contract Purchase) finance agreement* offered by Mercedes-Benz for the same CLA model.
Both cars were on the exact same term – a 48-month contract with 8,000 miles per year, but the Moneyshake lease deal saves you a whopping £4,138.60!
The reason why PCP is generally more expensive than leasing is because it tends to be more flexible and there are APR (Annual Percentage Rate) interest costs added in like a standard bank loan.
Price isn’t the only benefit of leasing a car – here are some other reasons why you should lease.
- All cars are brand-new. Every car you lease through Moneyshake is brand-new and include the full manufacturer’s warranty as standard. If anything breaks unexpectedly, you can take it to a garage to be fixed free of charge.
- Road tax included. You won’t need to pay for road tax; this is included in the monthly payments you make for your new lease car.
- Forget about depreciation. There’s no need to worry about your new car losing its value, simply hand the car back at the end and walk away with nothing more to pay.
- Forget about selling. Lease cars are owned by the finance company, so you won’t have to faff around trying to sell a used car once your contract is up.
- Free UK mainland delivery. A dealer will deliver your car directly to your doorstep for free – no need to go out of your way for your new vehicle.
- Contract flexibility. If you need to amend elements of your contract, such as the mileage, you can do so (bear in mind that the price of your monthly payments are likely to change as a result).
*The lease and PCP deals were available on 8 December 2021