If you are looking to get a brand new car, but suffer from a bad credit score, then leasing is one of the easiest ways to getting behind the wheel at an affordable monthly cost. Payments are kept relatively low because you are technically just renting the vehicle out. And, then at the end of the leasing term, you simply return the car just like you would with a holiday hire car. The total amount that you end up paying over the course of the term is normally much lower than the car’s cash price because you are not buying it. In the past, the downside of leasing is that you would normally need a good credit score to be accepted, and then you had nothing to show at the end of the lease. However, these days, there are companies that specialise in car leasing for bad credit. And, those who choose to lease a car with a bad credit score can improve it over time when they make their payments in full and on time. But, there are many other benefits of leasing a car when you suffer from a bad score of which we are going to covert throughout this short but insightful article.
You Drive a Brand New Car
When opting to lease, you will be able to drive a brand new car and a better one than if you were to buy one completely outright. The reason for this is because you won’t technically own the car, which means that you will only pay the depreciation of the car for the term of the lease. This also means that your monthly repayments will be lower compared to other types of car finance.
You Get The Latest Technology
The other benefit of driving a brand new car is that you will benefit from all the latest technology. So, if you like to think of yourself as a ‘tech-head’ and are thinking about leasing a car instead of buying one, then this is another reason to do so.
The Monthly Repayments Are Fixed
When you lease a car, you will make fixed monthly repayments throughout the term that is based on the depreciation value. This is basically the difference between the purchase price of the car if you were to pay for it outright and resale value at the end of the leasing term. The more a car holds it’s value over time, the lower the monthly repayments will be, which makes it possible to lease a high-quality car that you chose to buy one.
You Are Covered by The Manufacturer’s Warranty
Another financial benefit of leasing a car is that you are covered by the manufacturer’s warranty, which means your maintenance costs will be a lot lower. However, do be aware that most car leasing companies have a policy where you are covered on mechanical faults but not general wear and tear.
It Helps You to Better Manage Your Money
Apart from insurance and your fuel, when you lease a car, you know exactly what it is going to cost you every month. This is a particularly handy benefit if you have suffered from a bad credit score in the past as it will help you to manage your money better. Which, in turn, will contribute to improving your credit score over time. For example, if you miss your repayments or do not make them in full, then this will have a negative impact on your score.
You Can Improve Your Credit Score
Any credit product that includes monthly repayments will affect your credit score. This can include your phone contract, credit cards and of course; leasing a car. However, it’s important to acknowledge that this can be both beneficial and detrimental. In other words, it’s all down to you and how you manage the lease. We recommend choosing a car that you know you will be able to afford over a period of time. This way, you will be able to make each repayment which will build your payment history and ultimately your credit score.