Dec 03 2010
Car Leasing Deals for your Dream Car
Car leasing deals can help you get your hands on that dream car. If you are not hung up about owning a car, then you can lease one through personal contact hire at a much lower price than it would cost you to purchase one.
Some people find it difficult to get their heads round this fact but it has been proven countless times that this really is the case. You can prove it to yourself very simply. Simply pick your car and find out how much the monthly repayments would be on your car loan, then check out what your repayments would be on a car leasing deal over the same time frame, say three years. You will find that your payments will be far lower for leasing.
Here is an example. Lets take a BMW contract hire example. If you purchased that new the advertised price would be £27,360 but no doubt you could persuade your dealer to knock something off that. Perhaps you could buy if for £26,000. If you took out a car loan for that repayable over three years you might expect to pay a minimum of 7.8% APR assuming that you are a homeowner and you have an excellent credit rating. This would cost you about £810 a month. If you leased the car from Frontierleasing.co.uk for a three year period, then the monthly repayments would be around £430 a month which is just over half of the loan repayment amount.
Of course, you might not need to take out a loan for the full amount. You may have a car to sell or part exchange and you might have some additional cash to contribute, but in order to reduce the loan repayments to an equivalent amount of the payments on the lease you would need to put down a deposit on your Audi TT of £14,000 and still pay £440 a month. The irony is that £14,000 would nearly your repayments for cover the lease for the total period of the lease. Of course, you could argue that if you bought the car you would still have it at the end of three years, but by then it would have devalued and be worth only about £15,000.