Many people have the idea that when you go into a car ownership scheme, you are saving your money as you will end up with an asset. Though this may be true to some extent, what most people do not realise is that cars are a depreciating asset.

All car finance schemes are based on an estimated future residual value of the car. The bulk of what you pay during the lease or hire purchase period is the depreciation value, you are therefore paying for the usage of the asset rather than making any considerable saving. The question of whether you make any saving or not really depends on what happens to the vehicles end residual value, the question being – is the vehicles value considerably higher than the finance company expected it to be? – the answer to this questions tends to be no as finance companies are quite good at predicting this value. The concept then that buying your vehicle outright is more beneficial than leasing is questionable. As the asset increases in age so does the cost of maintenance and servicing, something one has to bear in mind when comparing purchase to lease/rental.

At EM Lease we advise that vehicles are an asset that one pays to use as opposed to pay to own.

 

CONTACT OUR USED CAR SALES DEPARTMENT FOR YOUR USED CAR NEEDS

We always have stocks of the following cars:

  • Nearly new cars (6 months old) with maximum 12,000 miles
  • 1 year old cars with maximum 24,000 mile

 

PLEASE NOTE: WE DO NOT LEASE USED CARS, OUR USED CAR STOCK IS ONLY FOR OUTRIGHT PURCHASE.