Leasing a car is becoming a more popular choice over buying. Here we tell you what it’s all about and its benefits.
Leasing is a medium- to long-term agreement under which the lessor — usually a specialist company or financial institution — lets an item to the lessee for a monthly fee. It’s a popular arrangement for cars that is taking off the world over. According to Asociación Española de Renting de Vehículos (Spanish vehicle leasing association, or AER), car leasing is up 34% year-on-year in Spain.
What’s the deal? Benefits and pitfalls
Many individuals and companies ask themselves should they buy or lease when looking for a new car. While it largely depends on their needs and preferences, it’s handy to know what leasing offers as an alternative to buying. The key features of car leasing are:
Leasing will continue to gain popularity in the future due to individuals and businesses’ thirst for newer and bigger vehicles and its increasing prevalence over buying.
In Spain, we lease cars through Santander Renting and, for younger people, through Santander SmartBank. What’s more, Santander Consumer España’s Wabi is a subscription-based leasing model with no minimum contract.