If you’ve been looking online at ways to finance the purchase of your new car, then there’s a good chance that you’ll have seen advertisements for car leasing. Effectively a long term car hire, car leasing gives drivers a lot of flexibility in the short term. But you may have only seen car leasing on used cars. Can you get a lease on a new car?

What cars can I get a lease on?

You can get a car leasing deal on used, nearly new and new cars. While there are more options on used vehicles, a lease deal on a new car may only be available to those with a good to excellent credit rating.

It also depends a lot on the dealer. So, if you have your heart set on a specific make and model that you want to lease, then you’ll need to have a look around and find a dealer that a) has the car available for leasing, and b) you meet the criteria for. The good news is that, with the internet, you’re search is likely to be a lot easier.

What are the advantages of leasing a new car?

There are a number of advantages of leasing a new car versus other kinds of finance packages. The biggest is the lower monthly payments. Because most lease deals are only two to three years long, you won’t accumulate as much interest. You also don’t have to worry about the car’s value diminishing through depreciation, as you return the car to the dealer at the end of the agreement.

That return of the car to the dealer is another advantage. You are not making a long term commitment to the vehicle. Instead you can lease the car and choose a newer or different type of car when the agreement comes to an end. Dealers will often also include a warranty to help protect the car, so you won’t have to pay for any maintenance or servicing.

Are there any disadvantages?

One of the disadvantages of car leasing is that you don’t own the car, so you are investing money in something that provides you with no equity – i.e. you don’t get any value in the amount you invest. While you may think this could be a waste of money, remember that car leasing allows you to get a new car when you might not have been able to afford one.

Another potential disadvantage is that car leasing deals may come with annual mileage limits and condition requirements. So make sure that you know your average yearly miles and also be careful when parking in tight spaces!

Should I lease or buy a new car?

Leasing allows you to get a new car at an affordable monthly cost. While you only take charge of the car for a short period of time, you get the benefits of newer technology, lower running costs, and a nicer drive. Buying the car gets you the same, but it also requires a sizeable chunk of change.

What you have to do is look at your finances and look at where you see yourself in a few years time. Car leasing can be great in the short and long terms, providing you are happy to change cars ever few years. The lower costs will leave you with more money in your pocket in the short term. But you’ll need to be certain that you don’t want to own the car at the end of the agreement.