Some people are confused when it comes to buying a cheap car or hiring an expensive one in the UK. Now, the answer actually depends upon your needs. You should first ascertain what your need is before you venture forth with a final decision. Most financial advisors will tell you that when you are buying a new car, you should expect the value of the car to depreciate by 15-20% in the first year. This is something that you should be ready for if you are buying a new car.
Hiring an expensive car
Hiring an expensive car is cheaper and if you are leasing the car, it is another way for you to buy the vehicle. In the former case, you will pay for the hours that are hired or the mileage covered. The rental contract will depend upon the company that gives you the car hire. Different car models have different rates. This is why you should speak to the car rental company and enquire what these rates are. Once you have calculated the rates for the car hire you may compare them to buying a cheap car. Often the rates are the same however there are chances that buying a cheap car would be feasible for you. In the latter case, you are not renting the car from the manufacturer. Many car dealers prefer leasing vehicles because it is simple for them to make higher profits. This is where you as the buyer must understand how leases are calculated in order to make the right choice.
How does a lease work?
A lease is more like the conventional loan and in the beginning of taking the loan, you make a down payment for the vehicle. Once the loan period is over, you owe the dealer nothing however in a car lease you owe the residual value that is mentioned in the lease. At the end of the term, you either can turn the car in or pay the residual value. The lease contract needs to be understood well. You should read the terms and the conditions of the contract and in case you have doubts and need clarifications, it is prudent for you to speak to an experienced professional who will help you understand the contract.
Buying a cheap car
If you do not wish to go into the hassles of car rental and lease, you can go in for cheap car purchases. You also have the choice to buy a second-hand car if you wish to. However, here again you must ensure that you find the perfect car warranty insurance for your needs. This will help you protect your car from heavy repair costs.
For getting the ideal car warranty insurance, you should take time and search insurance policies that are based on your needs. Once you find the right warranty insurance, read the terms carefully and then sign the agreement. In this manner, you will find the ideal car warranty insurance perfect for your needs with success!