Dreaming of adding a new set of luxury wheels to your collection in 2023? With a variety of options now available when it comes to getting yourself behind the wheel of that lavish new vehicle, it can be difficult to know where to start.
While in the past, splurging an eye-watering upfront amount on the object of your desire was the norm, a growing number of us are opting to lease a high-end vehicle instead – but it’s not because we can’t afford the initial price tag. Depending on your individual needs and requirements, it might just be the best choice for you.
Deciding whether to lease or buy depends on a few factors, including what you value in a car, how long you plan to keep it and your overall budget. Many luxury automobile brands offer great lease value, with the likes of Porsche, Lexus, Land rover, Mercedes, BMW and the Kia EV6 all currently available on some great deals.
Here, we take a look at all you need to know to make the right decision.
What does it cost to lease a luxury car?
The cost of leasing a luxury car will vary depending on the make, model, amount of time you wish to have use of it and ultimately, the price you negotiate with your chosen dealer. Your monthly payments will be determined by the difference between the agreed price and the expected value of the car at the end of the lease term – which most often, last for anywhere between two and four years.
Cars generally depreciate in value fairly rapidly during the first two years, losing between 40 and 60 per cent of their overall value by year five, and luxury cars can depreciate even more rapidly than mid-range alternatives. The lease value is based on the highest depreciation period and your monthly payments will also take into account your estimated annual mileage.
The more you expect to drive it, the higher your instalments will be, as the more miles a car has on the clock, the faster its resale value falls. It’s important to be realistic when estimating your annual mileage, as often, going over the agreed amount can result in additional fees when returning your car at the end of the lease period.
To buy or to lease?
Because the majority of luxury car buyers seek out shiny new models as status symbols, this can also mean that resale prices for high-end vehicles are comparatively low – so with this in mind, it is often more cost-effective to simply lease a luxury car and enjoy its best years before returning it.
However, when leasing or renting a car, it’s crucial to know that you will never own it outright – even at the end of your term. Some providers do offer you the option of paying a final value fee in order to own it, but overall, you will usually have paid more for the car than it is worth by then – which is why the majority of those who choose to lease or rent cars opt to return them and lease brand new cars when their agreement comes to an end. In doing so, you can always be driving one of the latest models, and have a new car to enjoy every few years – which for motoring enthusiasts, is as good as it gets.
Just like buying a car upfront, leasing requires a down-payment and credit checks will be determined for affordability – but overall, both are smooth and straightforward processes that will have you behind the wheel in no time.
The bottom line
The prospect of leasing a new luxury car can be an exhilarating one – but before you make your decision on whether it’s the right choice for you, consider your budget and individual needs and see whether they align.
There are many things to consider before leasing a luxury car, but if you do decide to go for it, then seeking out a dealer offering great car leasing deals is a good place to start. Even the most opulent brands can be found for a good price, leaving you more money to spend on simply enjoying that luxury lifestyle you’ve worked so hard to create.
