Why should people lease a car?

Let’s not hang around waiting for answers: we went to the top and asked managing director at Intelligent Car Leasing, Martin Brown, why should people lease a car? Here’s what he had to say. 

Martin Brown, Managing Director at Intelligent Car Leasing

“First thing, I think it’s worth acknowledging that there are many ways to acquire a new car, and depending on personal circumstances they might be different. If you‘ve hit the lottery jackpot and wanted to ‘splash the cash’ then you should just go and do it and enjoy every moment. 

“But for most of us, that lottery moment remains elusive, unfortunately. So that’s why leasing is so important: leasing allows you to get into a new car at a much reduced cost, and often to drive a new car that would seem unattainable if you were to buy it on a purchase agreement. Many of the most popular cars we see customers leasing from Intelligent Car Leasing are premium models, such as Audis, BMWs and Mercedes. 

The basics of leasing 

“So, let’s just remind ourselves about leasing. In very basic terms it’s a car rental on a contract. The car contract encompasses a time element expressed in months (24, 36 or 48 are the usual parameters) and an annual mileage agreement depending on your requirements (5000 miles, 8000 miles, 10,000 miles or more). You then get to drive the car for that period of time and for that amount of mileage during your contract. It’s that simple.  

“At the end of the contract, the car is returned to the funder that has been financing the car, and subject to general conditions covering appearance and maintenance, and as long as you have not gone over your contracted mileage, there’s nothing else to pay. And you are free to start a new lease contract. 

“So, what happens to ‘your’ car when you return it? The funder will sell your car on in the second hand car market, perhaps at a car auction or perhaps to a dealer that has expressed interest in your vehicle. Which brings me to the point about affordability. 

“Leasing is more affordable than buying a car, simply because you are only financing the amount of value the car loses during the contract (plus the cost of the finance). Whereas if you purchase a car you would need to finance the whole amount of the car’s worth from day one. So, as is particularly the case with premium cars, the monthly rentals are more affordable because they hold their value well. 

“There are other good reasons to lease a car. The main one, from my point of view, is that it always puts you in the latest technology. I think this is especially true at the moment as we begin to consider electrified cars. Perhaps the leap to a fully electric car is too much to contemplate at the moment, but you might feel more confident to have a hybrid model instead. In two or three years, conditions may have changed, and you may be ready to make the transition. Leasing also means you do not end stuck with ‘legacy’ technology, either, as you would if you had purchased. 

“Other areas, such as car technology and safety, are progressing at such pace – for example the Government has just paved the way for cars to drive in ‘automated’ mode on motorways. So, by leasing you can benefit from these new technologies on a regular basis. 

“So that's leasing - a great way to drive a new car. If you have any further questions, then please feel free to call us on 0344 387 2727 and we will be happy to assist you.”