Car Leasing vs Buying

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Car Leasing vs Buying – Which Is Best?

One of the main reasons why each year more and more businesses and individuals are choosing Car Leasing as a means of financing a new car or van is that they are fed up of the high depreciation rates that affect most vehicles nowadays. Most cars end up being worth between 30% and 50% of their purchase price after three years, with few exceptions, so this can represent a huge capital loss to the owner.

When considering Car Leasing vs Buying, Car Leasing can be much more cost-effective, especially if you go for one of the many Car Lease deals or Manufacturer’s offers available in the marketplace, as the total cost of your rentals over the contract period is usually less than the amount that the vehicle depreciates over that time. There are many ways you can save money on your next car lease.

However, there are many more benefits of leasing a car in addition to the depreciation issue.

Here are some of the things you should consider to help answer the Lease vs Buy question, and enable you to decide whether car leasing or buying is best for you.

Leasing a car 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 (see our Fair Wear & Tear section)
• 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

Hopefully, the above points will help you resolve the Car Leasing vs Buying question. In general, Car Leasing is a very cost effective hassle-free way of acquiring a new vehicle which is appealing to both businesses and private individuals.

If you’ve decided to choose Car Leasing as the method of financing your next car, the next stage is to consider the various Types Of Leasing available to you.

 

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