We bought our Skoda brand-new five years ago.  We paid a set amount each month and then a sizeable lump sum at the end to keep the car.  Looking back it was a big investment for us.  My husband had not long been promoted and we possibly got a little carried away.  When it came to the lump sum at the end it was a bit of a struggle and we had to use credit cards.  It’s only now we are getting straight.  That’s why I plan to lease my next car.

I am not sure what was the driving force behind our urge to have a new car.  Most likely it was to do with safety ratings more than the kudos of driving a brand-new car.  I do make a point of regularly looking on Euro NCAP and seeing which models are the safest for my family.  Mind you we are stuck with the Skoda for awhile now to try and offset some of the impact of depreciation.

Lessen The Impact Of Depreciation

Buying a new car was not necessarily a wise move financially for us.  A new car loses half its value in the first three years, so we didn’t have a worthwhile asset when we paid that final lump sum.  I only wanted to keep the car because we had rear air bags added when it was manufactured which lots of second hand skoda’s wouldn’t have offered.  But now there are safer cars than ours.  If we had leased the impact of depreciation would have been lessened because it would only affect the lease period.

Newer Cars Have Improved Safety Systems

Looking at Genus Car Leasing we could probably afford a monthly cost for leasing a car and we could keep switching when the term ends.  Which would give us the latest model each time.  Newer cars are safer due to technological such as autonomous emergency braking and collision warning.  What you find is that drivers don’t often stop quick enough to avoid an accident.  However autonomous emergency braking means the car will act independently to try and avoid a bad situation.

By leasing we can continue to have the latest cars and benefit from those enhanced safety assistance systems.  Something we could never manage if we bought a new car again.  We would just be compelled to hang on to it like our Skoda.

Maintenance Issues

Now we have pretty much paid for our car you would think its less of a financial burden but sadly not!  Now its older it keeps having more maintenance problems.  It is costing us a lot more in trips to the garage.  Whenever we have a MOT some issue will be flagged, and more costs involved.  If we leased we could continue to enjoy a reliable car and not panic about maintaining it.  My husband and I both would prefer a set sum each month came out of our bank accounts so we can budget effectively.  Currently we might have a few good months and then something expensive pops up with our car!

Read my article about important things to know about car finance if you want to know more on the subject.