Until a few years ago, it was quite common for us to treat ourselves to brand-new equipment and tick it off our wish list without thinking twice. However, times have changed, and we’ve all had to deal with some hardships along the way. Whether it is job instability or other personal difficulties, we’ve truly started to keep an eye on how purchases affect our finances.
This is particularly true with the ongoing, unprecedented situation. This challenging period has forced both businesses and individuals to carefully consider their financial possibilities. Is this modern computer really affordable? Is this good-looking vehicle worth its price tag? It is no surprise that the leasing market has grown in popularity as a result.
In this respect, we take a look at the reasons for which people would rather lease than buy an asset. What are the alternative views and benefits that are making leasing an interesting solution for both businesses and individuals?
Little upfront money and affordable payments
One of the leasing market’s best perks is that it allows people to get hold of assets at a reasonable price. Chances are that, in the past two years or so, businesses and individuals have had to burn through their savings, leaving them with little resources to invest in new equipment. Buying from the outset would mean that they would have to spend more than they can afford.
Instead, lease contracts can be started with a cost-effective sum of money. This allows people to stay within budget and enjoy their new assets without having to break the bank.
Shorter commitments
When you purchase a computer, a vehicle, or a specific work tool, you are usually ‘stuck’ with it for a long time. The truth is, however, that you never know what the future has in store. In a few months’ time, you could be switching and reinventing your career completely. It may also be that, for whatever reason, certain equipment will become obsolete in the space of a couple of years.
Leasing offers more scope for flexibility. People appreciate this aspect because it means they do not have to commit to an asset that may end up being useless to them in the near future. In short, consumers tend to lean towards leasing as it allows them to make wiser and shorter commitments.
Stay on top of updates
There is no hiding that technology continues to evolve year after year. As you read news about the introduction of avant-garde features and innovative equipment, however, your excitement may be dampened by the fact you’ve only just bought a now-outdated tool.
Another leasing benefit that people and businesses truly appreciate is that you can switch to modern assets with more freedom. If updated, better versions enter the market, you can return your current asset and lease the upgraded one. This gives you the chance to always stay on top of newer models and handier equipment.
No depreciation issues
Buyers often worry about depreciation. What if the new, expensive asset they have purchased will lose value fairly quickly? This can impact their finances when they decide it is time to change and sell their vehicle or equipment.
By leasing an asset, depreciation is no longer your problem. If the value of an asset drops, it is the lender who will have to deal with the ‘issue’. This is another reason why people find leasing a very attractive option.
No MOTs
Individuals and businesses in need of a vehicle or two see leasing as an interesting alternative too. There is no denying that cars and vans can be both expensive to buy and to maintain. From hefty price tags to costly garage check-ups, vehicles are a pricey investment – nowadays especially.
Car and van leasing allows consumers to cut costs and keep their savings safe. One of the advantages is that leased vehicles do not need an MOT until they are three years old. Therefore, if leasing a brand-new car or van, MOTs will become a distant memory.
As we live in unpredictable times, investing in high-priced assets is an obstacle for lots of people. With an array of excellent benefits, the leasing market is certainly growing in popularity. Ultimately, it offers businesses and consumers a way to benefit from needed equipment and tools in a cost-effective, convenient manner.
Sources
https://secure.cbonline.co.uk/business/business-news/articles/leasing-buying-assets-pros-cons
https://www.huffpost.com/entry/10-reasons-you-should-lea_b_9680970