Should I lease or buy my next new vehicle?
The question of buy vs lease arises for many people when they are thinking about getting a new car or van. This needs careful consideration whether you are looking for a company vehicle, opting out of your company car scheme, or looking for a private vehicle.
If you have purchased your vehicles in the past, you will probably be aware of how much they depreciate over time. In fact, most cars will have lost at least half their value by the time they are three years old.
If you lease a car, you do not need to worry about depreciation as, with most lease contracts, you do not own the vehicle and can simply hand it back at the end of the term. You can find out more about your End of Contract Options at our Car Leasing Guide website, along with many other useful car leasing tips.
The main benefits of Car Leasing are easy budgeting of your motoring costs, low initial outlay and monthly payments compared to purchasing a vehicle, easily change your car every two or three years, and no further commitment when the lease ends. In addition, businesses benefit from improved cashflow, tax advantages and VAT relief.
To help you answer the lease versus buy dilemma, leasing a vehicle would probably suit you if:-
- You want to know exactly how much your motoring will cost you every month
- You don’t want any surprise bills for repairs, routine maintenance or MOTs
- You like to drive a new car every 2 or 3 years
- You don’t want to worry about how fast your car is depreciating
- You only want a low initial outlay to acquire your new vehicle
- You have a good idea of how many miles you drive each year
- You tend to look after the car you drive, as lease cars are subject to a Fair Wear & Tear policy
- You don’t enjoy the ordeal of part-exchange or disposing of your old vehicle
- You like the idea of having end of contract options – you can simply hand the car back with no further commitment, extend the lease, or maybe even purchase the vehicle if you wish
I hope this helps resolve the lease vs buy issue. Our next post will discuss in more detail the main car leasing benefits of business contract hire and personal car leasing, as well as the disadvantages. So look out for that next week!
If you’d like to learn more about Car Leasing, then you’re welcome to:-
- Sign up for the Car Leasing Guide RSS Feed
- Subscribe to our Blog and receive each new Blog Post direct to your email inbox
- Check out ‘The Car Lease Guide eBook – A Plain English Guide To Car Leasing’