Car and van leasing is becoming increasingly popular in this day and age as interest rates and VAT continues to rise, making to cost of buying a new car or van prohibitively expensive. Once upon a time, car leasing was mainly associated with large businesses who had the leverage to negotiate bulk deals when leasing a fleets of cars or vans. However more and more small businesses, sole traders and private individuals are reaping the benefits of leasing their vehicle instead of buying.
Next to your home, your car is one of the most expensive things you're likely to buy. But unlike a house which in theory increases in value each year, you car looses value year on year until eventually, it's worthless. If like me you begrudge the idea of spending thousands of pounds on an item which looses its resale value so rapidly, then leasing a car could be for you.
If you like the idea of changing your car regularly, never driving a car more than 3 years old then car or van leasing could be ideal for you. The monthly payments are usually much cheaper than those associated with the financing of a brand new car and often the monthly payments include road tax and insurance, so you may not have to find funding for these two costs every year either.
Before I started leasing I was buying and selling my cars like everybody else does. I'm good at shopping around for a good deal when buying but as a seller I never get as much as I'd hoped for. The beauty of car leasing is instead of going through the rigmarole of trying to sell or part exchange the car, in my case for less than it's worth, I simply hand it back and lease another brand new car.
Car leasing has also had a positive impact on my own business too. Being the type who's never been able to afford a brand new car means I've ended up getting the best second hand car my budget will allow, however leasing enables me to arrive at meetings in a vehicle with a little more finesse, which has a positive impact on my business clients too.
Car or van leasing can also be a good option for tradesmen too. Your trusty old van may be considered part of the furniture, but think about it from the customer's point of view for a moment. Imagine hiring a carpet fitter and they turn up in a rusty old transit van... you'll be having second thoughts as soon as they arrive with your brand new carpet in the back. However if they turn up driving a new van, your expectations will instantly be raised simply due to the vehicle they drive.
Your vehicle can have a bigger impact of your clients than you'd expect, so if you can't afford to buy a new car or van, then maybe leasing is the way for you.
