Categories: News

Leasing is getting more and more expensive: here’s the reason

Buying a new car will be more difficult, while leasing becomes more and more expensive. We will explain everything to you.

Changing your car or buying your very first is always a big step. But it is not always easy and many obstacles can come along the way. You already have to find the right model, with the right options, and above all with a reasonable price. Which is increasingly difficult today, when the prices of new cars have increased significantly. And this in particular because of the soaring raw material costs and inflation in general. This is particularly why leasing, or long-term rental, is experiencing growing success.

Rising prices

The concept is simple: you pay a certain amount each month, during the entire duration of a contract which may vary according to your needs and budget. Then you must return the car but you can also buy it back under certain conditions and in certain cases. An offer that seems interesting, but which may turn out not to be as advantageous as that, especially at the moment. Indeed, prices have increased considerably, and this is not about to stop. In fact, commercial banks, which finance leasing, ask more from the companies responsible for leasing the cars.

An increase in rates

And the latter then pass on this increase to the end customer. The cause is the increase in interest rates from the European Central Bank (ECB). Not long ago, the rates were in fact displayed at only 1%, while they are now between 3 and 4% on average. Thus, motorists are forced to choose less expensive cars. Especially since the social leasing promised by the government seems to be a bit stuck at the moment…

Read also :
Used: models to resell now
Used Car: Which Model to Buy?
There Are Fewer And Fewer Used Cars For Sale

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