Is private leasing what’s next for you?
When private leasing comes up in social settings, opinions are often divided. ‘Private lease is just an expensive loan’ or ‘too good to be true’ are often heard comments. The fact is that, in many cases, a private lease is cheaper than buying a (new) car. The key lies in ‘efficiencies of scale’. Here are six reasons why leasing can be more cost-effective than buying.
1. Purchase cost
Whereas a consumer buys one car, leasing companies buy hundreds at a time. That brings huge economies of scale—out of reach for private buyers, no matter how good your negotiation skills are.
3. Maintenance
Leasing companies have national networks in place with maintenance and repair vendors. Due to the high numbers of cars are significant, they can negotiate rates and make agreements with these vendors to ensure drivers have access to the best service and repairs 24/7 at sharper rates.
5. New car
When you lease a car, it is usually a brand new car, fresh made from the factory. If you had to buy a car yourself, it might have been a used car, but there is just something about the amazing smell of a new car, right? With private leasing, you also have the option of changing your car more often than you might if you own it.
6. Resale value
When a leasing contract comes to an end, the car has to be sold. This is another area where a leasing company is in a much better position than a private car owner. LeasePlan even has a resale organisation - CarNext - that resells lease cars in bulk. This is a much more efficient system than selling your old car online or through a car dealership.
