Which Cars Offer The Best Value When Leased?
One of the big advantages of Car Leasing is that you can often afford to drive a car that may have been out of your price range if you were buying the car outright. Whether you are looking for a small hatchback or a family sized car, the quality brands such as Audi, BMW and Mercedes can be much more cost effective when it comes to leasing a car.
Why are more expensive cars often cheaper to lease?
You get more car for your money when you lease a car that depreciates slower. The finance companies calculate their leasing payments based on what a vehicle is likely to be worth at the end of contract (say, three years), known as its residual value. When you lease a car, you are only actually paying the finance company for the depreciation on that vehicle over the lease period. So a car that loses less of its value will be cheaper to lease than one with high depreciation. Some of the best car leasing deals available are on the more expensive quality brands.
So which cars offer the best value when leased?
The brands that are best known for their quality and reliability usually depreciate at a slower rate and have a higher residual value at the end of three years, so these are usually the best value lease cars. In fact, there can be a very big difference in cost between the lowest depreciating cars which only lose about 40% of their value over three years, and the worst which can lose as much as 65% of their worth.
For example, you could pay a lease rental of £250 a month for a £16,000 Vauxhall Astra, and yet the rental would be the same for an £18,000 Audi A3 Sportback (three year contract). So you are able to drive a much better and higher value car for the same price as a cheaper one, because the Audi depreciates slower and has a higher residual value than the Vauxhall after three years.
In general, it’s makes like Audi, Mini, BMW, Mercedes and Honda that hold their value well that are the best value lease cars. In addition, certain models such as the Toyota Prius and VW Golf BlueMotion have good residual values, as do a number of the new city cars which have become popular lately, such as the Honda Jazz and Fiat 500. Among the best 4×4 vehicles are the BMW X5 and X6, Land Rover Discovery and Range Rover Sport, and the Audi Q7.
The makes that seem to have the worst residual value are Chevrolet, Chrysler, Dacia, MG and Ssangyong, so these makes are not usually good value if you’re thinking of leasing a car.
So, if you select a car with a good residual value at the end of contract, you can be sure you are getting one of the best value lease cars available!
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