All of us dream of driving away in a luxury car at some point in our lives. From BMW to Mercedes-Benz, all the way to Maserati and Porsche, these prestige vehicles exude style and class while offering a driving experience unlike anything else you might experience during your time on the road. Safe to say, the luxury car experience is something that anybody with a taste for the finer things in life will want to be part of at some stage.
However, when it comes to acquiring a luxury car, the experience is a little less glamorous. The best vehicles come at a premium price tag, and many drivers find themselves caught in a crossroads deciding whether it is sensible to buy a luxury car outright or whether to opt for a luxury car lease. While not without its disadvantages, the latter is a great option if you wish to indulge in the pleasure of driving a brand-new luxury vehicle without the pressure of a hefty outright purchase. To help you make a properly informed decision about which option is right for you, we have outlined the key pros and cons of luxury car leasing in this Intelligent Vehicle Finance guide.
Pros Of Leasing A Luxury Car
Naturally, we all like to consider the pros first when making a big decision. The same can apply when deciding whether you should lease a luxury car, with the key advantages of this option including the following.
Spread The Cost
Leasing a luxury car allows you to break down a substantial expense into manageable monthly payments. While an initial deposit is required, it is considerably lower than the upfront cost associated with purchasing a luxury car outright. This budget-friendly approach makes the allure of a high-end vehicle more accessible to a broader range of individuals.
Access To Newest Models
Leasing not only makes luxury cars more financially feasible but also opens the door to driving the very latest models. While purchasing might limit you to pre-owned options within your budget, a luxury car lease enables you to experience the thrill of the latest vehicle technology and cutting-edge features. The added benefit? You can regularly upgrade your vehicle at the end of your lease term, ensuring that you continue to experience the latest innovations when they first become available.
Possible Tax Advantages
For business users, leasing a luxury car may bring about potential tax advantages. VAT-registered businesses can often treat the monthly lease payments as tax-deductible business expenses. This financial incentive can be a significant factor for those who use their vehicle for business purposes, making leasing an attractive option from both a professional and financial standpoint.
Cons Of Leasing A Luxury Car
While the joy that comes with driving a brand-new luxury vehicle should not be underestimated, there are some downsides to leasing a luxury car. Make sure that you carefully consider these before jumping into an agreement.
Lack Of Ownership
There’s a huge sense of pride associated with driving a luxury car, but you must remember that any vehicle you lease is not yours. With most luxury car lease deals, the vehicle will have to be returned to the finance provider at the end of the fixed term and many drivers prefer to know they have total ownership of the car. Purchasing outright might be more suitable if you want the vehicle to be yours, though you could also explore a hire purchase agreement which allows you to purchase the car for a pre-agreed sum at the end of the agreement.
Mileage Restrictions
It’s also important to bear in mind that a luxury car lease will come with mileage restrictions. You can set this yourself at the start of the agreement, but estimating your annual mileage can be pretty challenging and even more so if you are signing up for a longer agreement like 5 years. However, you must stick to the agreed mileage as any excess can lead to an additional charge at the end of the term.
Maintenance Responsibilities
Don’t forget to factor in your maintenance responsibilities when deciding whether you should lease a luxury car. With many luxury car lease deals, you can opt to include a maintenance package within the overall deal. However, you might still be liable for any excessive wear and tear when you return the vehicle at the end of the agreement. Cosmetic repairs like scratches and dents are typically not covered by a routine maintenance package, so you will have to be cautious and look after the vehicle while it is in your possession.
Find The Perfect Luxury Car Lease Today
If careful consideration leads you to decide that a luxury car lease is the best option for you, take some time to think about which brand and model you’d like to drive and compare the different deals available. Intelligent Vehicle Finance can help you with this process, offering a huge range of the very best luxury car lease deals. Get in touch with our expert team to discuss your requirements and find the perfect vehicle today!