Years ago, the cars we drove were the cars we handed our hard earned cash over for. Just like the clothes we choose to wear, you could similarly tell a lot about a person by the car they drove. However with the popularity of payment by finance increasing steadily over the past few years, it is now possible for us all to drive the car of our dreams for the simple cost of a regular monthly payment. Forget walking on to the forecourt with a wallet full of cash; Personal car leasing is now the new method of payment.
Fifty years ago, our parents and grandparents would roam the shops with nothing but cash tucked in to their purse. Credit cards were not common practise and what you brought was simply what you could afford there and then. However just as the credit card is now replacing the use of cash, personal finance is slowly starting to replace the credit card on some purchases, predominantly car leasing.
Everyone has a dream car that they would buy if they 'won the lottery', from Range Rovers, to brand new Mini's to even a Ferrari or Lamborghini. The beauty of personal car leasing is that these dreams can now become a reality. Not many of us are fortunate enough to buy our dream house in one payment. Mortgages take care of this for most of us and it's only through making monthly repayments over many years, that we can afford to buy our homes. In the twenty first century, this is now the same case for our car purchases.
Whatever car you have your sights set on, as long as you have enough money for a small deposit on the car and are sure you can meet the monthly payments (of course the more expensive the car is, the higher the monthly payments) then personal car leasing allows us to buy any car we want, irrespective of whether we could afford the overall price tag.
Like a personal loan, you decide the amount you are borrowing and the time you wish to make the repayments over. The longer you take, the lower the repayments will be. Generally leasing tends to be over twelve, twenty four or even thirty six months. The choice simply comes down to how much you can afford to pay each month and how long you are happy to be fixed to your contract.
The benefit of this method of payment is that you are always in control of your money, with just one fixed payment each month. The total won't change so you can even set up a direct debit so the same amount leaves your bank on the same day, every month. Many deals offer insurance in the monthly payments also so you are fully covered should anything go wrong.
Once you have reached the end of your contract, you hand back the car or have the option of starting a new contract on another newer model. This is ideal if you don't want the hassle of having to sell your car or simply do not want the commitment of owning it outright.
Personal car leasing is great option for people who are looking to drive a new model but are worried about the drawbacks of depreciation. It also allows individuals and families to benefit from the luxuries of driving around in a new car, without the drawbacks of being the owner.
With the recent credit crunch in the UK, it seems more people are turning to personal car leasing in order to get behind the wheel. With benefits to both the car leasing companies and the customers, it certainly seems to be a deal that works for all.
Dominic Donaldson is an expert in the car industry.
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Personal Car Leasing and how it is becoming the new way to drive the car of your dreams.
