An astonishing interview with author Graham Hill about why he thinks car lease is better than taking out a loan. His argument is this; purchase is good when god increase in value, but lease is better when they depreciate in value. At the end of the day, you could be paying more for a bank loan than the car lease agreement, which can help cash flow.
Did you know that the law states you can hand your car back to a car lease provider after 50% of the payments have been made, if for example you run into financial difficulties, this is something you cannot do with a bank loan. This will not affect your credit agreement.
You can also hand the car back if the value if the vehicle falls below the agreed value on the agreement. You can sue the lender as well as the car dealer, something you cannot do with finance only.
Graham goes on to state that he believes you can also get a better HP deal if you shop around and negotiate, as car dealers often put money they make from the car back into the deal. This was an interview on radio 4’s “MoneyBox” programme, of which you can hear below.
