When it’s time for you to replace your current car, or if you are looking to own a vehicle for the very first time, you may be wondering whether it is better advised for you to lease a car or to buy it outright. Here, we look at the benefits of both options, which may help you to make your decision!
The first major difference between the two concerns their literal definitions. Leasing is different to buying because you will not be claiming full ownership of the car; instead, you will be changing cars every few years, essentially hiring it for a long-term period before moving on, as per the agreement terms, to something new. In this case, buying provides the advantage of knowing the car is your property, allowing you to keep it for as long as you want and to potentially profit from selling it years down the line. Leasing, though, would allow you to update the car fairly regularly, ensuring that you are keeping up with industry trends and that you won’t have to worry about what happens to the car when it begins ageing because you will always end up with a new motor.
As you might imagine, the second major difference concerns the costs. As with anything, you will be paying more if you wish to keep the car as opposed to holding onto it for a fixed term. In other words, it will save you money if you are leasing the car for a few years, rather than buying it entirely with the likelihood of a loan thrown in. This seems to make the leasing option better, but bear in mind that your terms will be based on a set amount of usage(leisure use like dog walks) or business commutes (work), so if you happen to go over this amount, you will ultimately have to pay more. In the case of buying the car, though, you can drive it as much as you want, because the price remains the same whether you take short trips around the block or if you’re going up and down the country.
The final option to consider is how long you would actually want the car for anyway. If you are planning to use it for a year or two and then move on, then leasing is clearly the best way to go. If, on the other hand, you believe that you’ll want the car for a very long time (especially if it is one of the newer models available, thus increasing its potential lifespan for you), then you may find that buying the car is more advisable. Your past history with driving will give you a strong indication as to what option would be the wisest; if you’ve had your current car for 9 or 10 years, chances are that you’ll want to keep hold of your new motor for some time as well. If you’ve chopped and changed frequently in the past, though, you’ll think otherwise. It’s all about your preferences, your past usage, and how much you plan to use the car, both in terms of mileage and time, that will ultimately determine whether you end up leasing or outright buying a car.
For more information, check out www.checkcarfinance.co.uk.