Why No Deposit Car Leasing Is The New Normal
Posted: 18th May 2017
Money is tight for many of us these days. We can’t all afford to splash out in one go and buy a car. Even if we could, it isn’t always practical or efficient to do so. This is why the rise of car leasing was inevitable.
The opportunity for each of us to pay for a car on a monthly basis like we do with Netflix and gym membership seems natural. This is why getting a car on car leasing without needing a deposit is the new normal when it comes to acquiring a car.
How no deposit car leasing works
Usually, leasing and finance options work by you paying a deposit, followed by a series of monthly payments. The ending depends on whether you choose a Personal Contract Purchase (PCP),a Hire Purchase (HP) or a Contract Hire (CH) agreement.
However, you don’t need to pay the deposit. Instead with a Hire Purchase and a Contract Hire agreement, you just pay the monthly payments for the duration of the agreement. With a Personal Contract Purchase agreement, you have the option to pay the final balloon payment after the monthly payments.
With money being tight, either through circumstance or priorities, having a deposit available for a car is not always possible. That should never mean that you can’t get a car. We need them to commute to work and do the weekly shop and more. No deposit car leasing makes getting a car more affordable and more accessible.
Instead of paying a deposit, you pay monthly payments on your lease or finance agreement. The cost of the deposit is spread evenly across the monthly payments. This means that your monthly payments will be slightly higher than if you didn’t pay a deposit. However, if you can afford the monthly payments, but not the deposit, it is well worth it.
Many of us, particularly with millennials, need access to cars, but can’t always afford those initial payments. No deposit car leasing gives us the opening we all need to gain access to a car. It helps us all in the long run because having a car makes everything easier. It grants us the freedom of choice that you can’t get on public transport and so on.
This is one of the big reasons why zero deposit car leasing has become the new normal and will soon be the most popular choice when it comes to acquiring a car. It gives people who would have otherwise been able to get a car access to one.
If you don’t have to worry about paying a deposit and you know you can afford the monthly costs, you suddenly have more choice about which car you want. Deposits can block us off from cars we really want. Not having to pay a deposit, means we can investigate cars that suddenly appear more affordable.
If you have the monthly budget for more premium models, not needing a deposit makes it look much more attractive. This is another reason why No deposit car leasing is the new normal when it comes to driving away in a new car.
If you find yourselves in need of a new car, check out our great selection of cars available. We do not ask you for a deposit, so no need to worry about that. Enquire with us and our staff will find you the best leasing or finance option available for you.