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

SEE HOW AFFORDABLE PERSONAL CAR LEASING IS

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