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January 21 2009 23:57

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The benefits and pitfalls - Luxury car leasing

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The benefits and pitfalls - Luxury car leasing

Source: Whatcar

One of the benefits of paying for a car in monthly instalments is that it brings many of the top brands financially within reach of more people.

Just as in the car market, there is a lease deal available for every budget, and covering the full range of PCP, PCH, lease purchase, hire purchase and contract hire deals.

While many people won't have £106,000 up front to pay for an Aston Martin DB9 coupe, for instance, the £1500 a month for a lease deal is more achievable.

Likewise, a Porsche 997 can be soured for around £750 a month.

Figures now suggest that more luxury cars are bought on lease deals than outright, partly because buyers usually want to use their spare money for other investments and also because luxury cars retain higher residual values, making lease arrangements better value.

It's important to ensure that you are committed to the full term of the deal, however, as the higher costs inevitably mean that the charges for breaking a contract will be higher too.


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