The poor student is a stereotype which, like many, is unfortunately grounded in truth. There are many sacrifices students need to make to be able to afford their lifestyles. One item which might often have a question mark over it is a car. Do students really need one? Can they save by leasing a car instead of buying one? Let’s take a look.
No Extra Costs
Buying a car has many hidden costs that you need to be aware of before you commit. You will have to pay road tax, insurance, the car payments themselves, and potentially an MOT fee once a year if your car is on the older side. MOTs are expensive and it might be a cost which a student simply can’t keep up with.
The advantage of car leasing is that you are only paying for fuel and the monthly leasing fee. All the extra costs like the road tax are usually included within the price of the monthly fee, although this may differ from leasing agent to agent. Nevertheless, paying for a lease on a car can be much less than if you were to be paying a monthly instalment on a car you actually owned, especially with the abundance of car leasing deals that are available. Therefore, students should consider car leasing if it means that they will be able to afford to have a set of wheels at university.
Allows a Better Car
Usually, the only way a student would be able to afford a new car is if they saved up for a long time or if it was gifted by family members. Most people will choose to drive a second-hand car for years before they manage to get their hands on a brand-new motor.
However, if you choose to lease a car, it is quite easy to find a model which is only a year old. This offers you the opportunity to drive a modern car which you could never have expected to have otherwise. For a little more, you could even opt for a more prestige car. Some students love a touch of luxury and being able to indulge themselves with a slightly better car might actually be a financially feasible option with car leasing.
Should You Lease?
Students need cars for a variety of reasons. Whether they are commuting to the university in the next town over or driving about for various placements, there are many different situations where a car would be more useful than public transport.
However, many students also have a limited income and would not be able to afford all the costs of a car on their own. If this is you, you should definitely consider leasing. It places you in full control of your vehicle and what you want to drive. What’s more, the money saved from not buying and paying off a car can be put to a better use; whether that’s rent or something academic like textbooks. If you are a student looking to save a little extra money, consider car leasing now.