As tempting as the proposition of leasing a car sounds, the rich actually prioritize their needs before diving into this deal. Generally speaking, there are some basic considerations to ponder upon before leasing anything. The rich do not lease simply because they can afford to. Or maybe they actually do.
It is a thing. Particular countries offer really flexible options for car leasing that makes it economically cheaper for the rich to lease their cars. Besides, for people living in posh localities, leasing offers the benefits of switching to newer models as desired. Consider Australia’s car leasing options. While the service is as good as gold, there is a rising inclination towards car Rentals from an inner circle of trusted private owners.
The flexibility of this system ranges from 7 days to a good 12 months! The service is similarly cost inclusive, all the maintenance and servicing took care of and you get to choose from a wider pool of luxury models. Brands like Audi, Hyundai, Mercedes and more are available, that too from a trusted owner looking for an exchange of mutual benefits. Australia’s car leasing options are simply a stepping stone to achieve a collaborative consumption of desired items or products.
The business class attraction
Setting up a business car lease is not a new concept and is very welcomed by the employees and employers alike. The fact that this deal provides a Price-Match-Promise, is the ultimate convenience that allows Businesses to reduce their capital expenditure and spend more on furthering the business.
A business car lease offers fixed costs. Accordingly to the employee contracts, the lease payments are fixed, which makes it convenient for the employers to calculate the taxes, maintenance costs and allocate budgets in advance.
Businessmen can choose to switch to newer models of luxury as well as utility brands as desired. The contract lasts for 2 to 3 years and is a flexible option for those who like to keep up their social status. It is an important aspect of attracting clients and other sponsors for the business. Besides, personally, it makes a lasting impression to be capable of affording branded cars as per social requirements.
This service is highly flexible too. Renewal of the lease is as easy as updating the requirements according to your changing parameters. From having a single vehicle to upgrading to a size-able fleet, the Business Lease covers it all. Whether it is a single luxe model to a fleet of Vans, the friendly and experienced handlers offer a hassle-free setting of a Business Car Lease.
Market trends to consider
General and specific studies indicate a considerable decline in the ownership rates for vehicles across many countries. It is not just the rich, but also the middle class and the smarter ones, who prefer leasing cars than to outright financing them.
Cost-effective thinking is also a part of the decision to lease a car or not. This basically depends on the model of the desired car. If the vehicle has a noticeable depreciation value, the rich prefer to lease the car. If the model is one such that its value may be expected to rise in the coming years, then it is considered an investment and the rich pretty much finance the car.
The other general benefits
Rich people may be millionaires and their standard of living is way different from the usual norm. But leasing a car offers multiple benefits to them, as it does to the general public.
Having a lot of money does make it more tempting to lease ultra-luxe brands, but from time to time. The flexibility aspect of this service is primarily a luring bait. Since we end up paying for the initial good years of the car, the lock-in period of 2–3 years is perfect. Mechanical faults occurring over time are a concern and since we have the car for just a few years, the cost of maintenance and servicing is another aspect handled by the dealer themselves. This makes for cost-effective investment in a temporary object.
Branded cars like Mercedes and BMW depreciate on a comparatively slow basis. They undergo rigorous maintenance that approximately results in a brand new serviced car, ensuring the long shelf life of the car. This makes them surprisingly affordable to lease. Also, the fact that lessee’s do not have to worry about the hassles of selling or trading-in their cars, makes leasing a more considered option.
It is true that leasing is more suitable for those with certain quirky, living habits. Those who do not drive more than a stipulated mileage annually, prefer to drive different models as desired and who like to pay as they go, enticed by the convenience of the leasing model are perfect for this service.
Ultimately, there is no one-choice-fits-all option when it comes to knowing whether millionaires lease or buy cars. A general consensus does state that leasing is more preferred among the elites, but when applied in real life, it would entirely depend on the financial situation of the individual.
In conclusion, wealthy people would probably go with the option which may be entirely and situationally beneficial to them.