It comes down to basic mathematics. If you choose to own your own home, you take a risk, but it's a calculated one. You're assuming the value of your home will increase over time, and therefore it should be an investment.
When it comes to leasing a car however the same rule does not apply. In most cases contract cars and vans depreciate with the average car being worth just a third of its original value after 3 years.
When vehicle leasing on Contract Hire, you take a vehicle on for a fixed period, and at the end of the term you simply hand it back, it is effectively a long-term rental. This is one of the biggest challenges that we often face however, what have our customers got to show for their hard-earned cash?
For an example, take a BMW 4 Series Gran Coupe 420D M Sport Auto:
Cash Price New £37,169
Value after 3 years £17,718
Equivalent Monthly Cost £474.39
Example Contract Hire Leasing Cost £335.98
(Based on Personal Contract Hire, 6+35, 10kpa - Price correct at time of writing and may have changed)
So basically, over the term of your contract hire and leasing you are paying off the cost of depreciation the vehicle will see for the time you have it. The bonus to vehicle leasing is you don't have to put down the large amount of cash at the start and you don't have to try and sell the vehicle off once you want to upgrade.