Owning a new car is an expensive business
Below is a MRR and PLR article in category Finance -> subcategory Other.
Owning a New Car: Why It's So Expensive and How Leasing Can Help
Summary:
Depreciation is the biggest expense in car ownership, making up about half of the annual running costs.
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According to the AA, the average annual cost of running a small family car for 10,000 miles increased to £5,611 from £5,534 in 2006. Depreciation is the largest expense, contributing to about half of these costs.
More people are opting for car leasing, a trend noted by Ling Valentine, the dynamic owner of LINGsCARS.com. Leasing a car for two to three years allows you to lock in your costs, avoiding the ups and downs of interest rates and APRs. This method provides a transparent monthly rental figure, simplifying price comparisons across new car models, unlike traditional finance offers.
How Leasing Works:
Ling explains from her 'World Headquarters' in Gateshead, "The monthly cost depends on several factors. I negotiate discounts by buying cars in bulk from dealers eager to meet sales targets. I collaborate with numerous contract-hire finance providers, each estimating what a car's value will be at the end of the lease. Finally, I package everything with significantly lower overheads than dealerships. I don't have the expense of maintaining flashy showrooms."
With LINGsCARS, you can access a price list of over 400 new car models online, displaying an easy-to-compare monthly rental cost. Ling offers a unique service by listing cars in price order?"something unheard of in the UK car market. You can compare models ranging from a £111 Chevrolet Matiz to a £735 Range Rover. Prices are based on annual mileages of 10, 15, and 20,000 miles, encouraging greener driving practices.
Dealerships often require large deposits or loans for new cars. Ling argues against tying up capital in a depreciating asset: "I only ask for a three-month rental upfront, followed by monthly payments. For new cars costing around £300 a month?"like a SAAB 9-5 or a Honda CRV?"you invest only £900 initially, paying month-by-month for usage. At the lease's end, return the car; no negative equity or lump sum to worry about."
Cost-Effective Maintenance and Safety:
Servicing new cars is inexpensive, as they don't require an MOT or major repairs like brakes and tires. Road tax is covered, and cars are delivered to your door. "All you need to do is insure, service, and fuel them," Ling states. Manufacturer warranties protect against breakdowns, and AA or RAC coverage is included for at least the first year. New cars also offer the latest safety features, crucial for families.
The AA highlights the rising costs of traditional car ownership, but Ling claims leasing can alleviate this burden. "If you're credit-worthy and care for the car like your own, you can use your current car’s equity to switch to a new model every few years affordably," she says.
In 2007, LINGsCARS rented over £28 million worth of new cars, earning the title "Best non-franchise motor industry website of the year" at the Automotive Management Awards.
Leasing offers a fresh perspective on car ownership, making it an attractive option for those looking to minimize costs and maximize value.
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This Beijing Olympic year, Ling Valentine is already winning big in the UK car market.
You can find the original non-AI version of this article here: Owning a new car is an expensive business.
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