Buying vs leasing a car
Not sure the best way to go about getting your brand new car? Both buying and leasing have advantages and disadvantages. Read our guide below to help you decide.
Advantages of leasing
- Most people are eligible to apply for a lease
- You get to drive a new car every 2-4 years
- The way cars are secured often means you will be driving a better car than you thought.
- Its an affordable way to drive a brand new car
- Road tax, breakdown cover and MOT (on cars less than 3 years) are all included
- No depreciation risk
- No worry selling the vehicle at the end of the contract
- Fixed cost motoring
- You can include a full maintenance package
Disadvantages of Leasing
- If you go over your agreed mileage you will need to pay the excess mileage charge
- If your circumstances change and you want to early terminate, this can be expensive
- If you have a poor credit rating it can be difficult to lease
- You will never own the vehicle
- Your vehicle needs to be returned in a condition that meets the BVRLA fair wear and tear guide
- You must maintain the vehicle if you have not taken out maintenance
Advantages of Buying
- The vehicle is yours and you have something to sell when you want to
- There is no stipulation on how you look after the vehicle
- You can drive as many miles as you want
- No worry selling the vehicle at the end of the contract
- Fixed cost motoring
Disadvantages of Buying
- Your vehicle will depreciate, unless of course you are buying a supercar or a vintage car. This means the car will lose most of its value in the first 2-3 years
- You need to remember to renew your road tax yearly, also MOT the vehicle when its due. Along with breakdown cover and maintenance.
- When its time to sell the vehicle, you have to go through the negotiations and disappointment of not getting what you think its worth
- You will normally be required to leave a large deposit
Is a personal car lease right for me?
Some questions below to ask yourself
Instances where personal leasing may be for me
- Do you like to have cars with the latest technology and styling
- Do you want the higher specification, but dont think your budget will stretch to the higher spec model
- Do you want to avoid the issues having an older car brings
- You know yourwhat your mileage will be across the contract length
- Do you want fixed cost motoring
- Do you not want the hassle of having to sell your car when the time comes
- Do you want to own something that is depreciating all the time.
Instances where personal leasing may not be for me
- My circumstances may change, I might get a job with a company car for example.
- I cant predict my mileage and it could change upwards drastically
- If you own your own business, its always worth looking at a business lease and talking it through with your accountant
- I dont mind driving an old or second hand car. I run them as long as I can.
- I'm a clumsy driver and always bumping and scratching the car