Leasing a car usually brings lower monthly payments than a PCP finance deal, while if you buy you won’t have to worry about mileage restrictions or bills for excessive wear and tear. Which option is better depends on your personal circumstances and preferences.
You can terminate a car leasing agreement at any time, but depending on how much has been repaid, and how your payments are structured, the financial penalties could be severe.
The fee that you pay at the start of a lease deal is larger than the subsequent monthly ones, so while some dealers offer 12-month lease deals, they’re an expensive option.
The biggest worry with car leasing is that you may suddenly find that you can no longer meet the repayments. However, mileage limits and wear and tear bills can also cause problems, while taking out GAP or PPI insurance can mitigate concerns.
When you take out a leasing contract it is based on a fixed mileage limit, and you will be charged a penalty if you exceed that limit.
While most car leasing agreements don’t cover maintenance as standard, many let you add an optional maintenance package for peace of mind and ease of budgeting.
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