Due to the pandemic-driven recession, buying a new car may not be an option for many. But you may be able to get great car lease deals right now. Dealers are stuck with a huge backlog of unsold vehicles in recent months. Thus, they are offering aggressive financing incentives to entice more buyers. Here are some insights that could help you decide towards leasing rather than buying your next car:
Less upfront money. With the recent lockdowns and quarantine measures, many people have burned through their savings. Purchasing a car requires up to 20% down payment to get a decent loan rate. So, it can be a challenge for those with a tight budget. There is little to no money down with vehicles for lease in Abu Dhabi, and there are no upfront sales tax charges. Also, customers can choose from a wide selection of vehicles, including economic models if they want low monthly payments.
Flexible payments. Because of the current pandemic, the commitment of a car purchase isn’t as appealing. No one knows what will happen over the next few years with the global crisis going on, which is why consumers are leaning towards the leasing option. The focus of consumers is on essential items such as food, groceries, hygiene supplies, and pharmaceuticals. Covid-19 has led people to worry about their job security and finances. As a result, many car rental companies are offering extended and flexible payments from 1 month up to 36 months. Leases are also more convenient because a contract can easily be transferred to another person without hefty penalties.
Low-interest rates. Monthly payments for a car loan are calculated based on the sale price, the interest rate, and the number of months it will take to repay it. Leases consider several factors, such as the sale price, length of the lease, expected mileage, and residual value. Thus, monthly payments are 30% to 60% lower than buying a car. This allows you to drive the latest models without committing to an expensive monthly premium. You can even upgrade every two to three years.
Manufacturer incentives. Each month car manufacturers offer incentives to make car leases and purchases more affordable to buyers. Due to the crisis brought about by COVID-19, low-cost leasing incentives have been made available. Cash incentives can be applied in several ways to arrive at a low lease payment. Interested clients can check for special offers on the manufacturer’s website or with the car lease provider.
If you’re looking for the cheapest rent a car or affordable leasing plans with flexible structure and payment terms, EuroStar Rent-A-Car UAE can help! One of the leasing economy car rental companies in the UAE, EuroStar, offers payment from one up to five years, and clients have the freedom to choose their vehicle. Contact 600 587 004 to know more!